Kathy Gibson reports – South Africa leads the sub-Sahara Africa region in digitisation, with the highest Internet penetration rates in Africa. As such, it is in a good position to drive economic growth through the use of technology.
Google South Africa’s Economic Impact Report estimates that the Internet adoption rate could reach 87% of the South African population by 2030.
Amy Price, director and head of technology policy at Public First, says South Africans are understandably excited about the potential, with most adults believing we should be investing more in developing digital skills.
The reports indicates that the country’s digital transformation will be accelerated by investments in technology – specifically cloud computing, connectivity and artificial intelligence (AI).
The region’s digital future is closely related to Google’s, according to the report.
Paul Mayanja, interim country director at Google SA, says the report indicates that leveraging digital technology is one of the best ways that South Africa can drive economic growth
“For every R1 invested in digital technology, R10 can be returned to the economy at large,” he says, adding that Google itself drove R118-billion of economic activity in 2023.
The study finds that targeted interventions supporting government policies can harness the potential of South Africa’s young population, with their entrepreneurial vigour, to accelerate digital adoption.
“This will help South Africa to maintain its status as a digital powerhouse on the continent.”
The report projects that a 1% increase in connectivity is associated with a 5,7% increase in the broader economy.
At the same time, cloud computing could drive a R167-billion increase in South Africa’s GDP, and AI could increase it by a further R172-billion.
“Africa is a young continent,” Mayanja adds. “There are 400-million people aged between 15 and 34.”
The report estimates that Google Search and Google Workspace help knowledge workers save over 2,5-million hours a week. This is equivalent to a R72-billion improvement in productivity for the country’s economy.
When it comes to travelling efficiently, 46% of online adults reported using Google Maps to look for public transportation routes or time, while 57% of online adults used it to avoid traffic congestion.
The research confirms that YouTube has empowered a new generation of digital entrepreneurs to share content and culture, while also monetising content.
“It is not just entrepreneurs who have used various Google products,” Mayanja says. “Established businesses like Standard Bank also leverage Google products.”
Google has pledged $1-billion to supporting digital initiatives, and helping startups and entrepreneurs to succeed, he adds.
The Economic Impact Report was compiled by independent research firm, Public First, and sheds light on the transformative impact of digital technology in South Africa, with a specific focus on Google’s contributions.
Research included economic modelling, consumer polling, creator polling and business polling.