Kathy Gibson reports – The Department of Trade, Industry and Competition has signed an agreement with Takealot to develop and digitalise the township economy.
Parks Tau, minister of trade, industry and competition, made the announcement this morning at the launch of a new report from Naspers and the Mapungubwe Institute for Strategic Reflection (Mistra) that explores the untapped potential of the country’s digital platform economy.
He welcomes the collaboration between business and the public sector, recognising that the digital economy is an important global driver of growth and improved service delivery.
“The contribution of the digital economy will soon be a quarter of global GDP,” Tau says. “It contributes 17% of service exports and 3% of South Africa’s GDP.”
However, there are numerous challenges towards inclusive growth in the digital economy, including with regards to skills development. To this end, the National Skills Fund will soon launch a demand-led skills initiative to train unemployed young people in digital skills.
“This is critical if we are to bridge the digital divide,” Tau says.
However, digital platforms also present us with opportunities, he adds. For instance, social media has shifted the way people buys good and services and offers opportunities to reduce unemployment
“In the platform economy, we must navigate the dichotomy of enabling business and creating jobs,” he cautions.
In a positive move, the DTIC is working with Takealot to co-operate on stimulating the township economy by enhancing value chains.
“The Takealot group and DTIC are announcing a strategic partnership to scale Takealot’s existing township initiative across South Africa.
“This is designed to create employment, increase earning and increase market access for businesses.”
Tau adds that there are numerous business opportunities available in the digital economy as more consumers turn to online shopping.
“There are opportunities in fintech, digital skills development, content creation, online services, the gig economy and healthtech.”