EDITORIAL: Digital transformation

The launch this week of a new report on SA’s digital platform economy was attended, albeit virtually, by two of SA’s new cabinet ministers — Parks Tau of trade, industry & competition and Solly Malatsi of communications & digital technologies.

It was an encouraging sign that the government might be starting to pay attention to new, future-facing economic sectors, instead of focusing just on trying to rescue old ones.

The report — commissioned by Naspers from independent researchers at Mistra — highlighted just how much digital transformation could contribute to SA’s economy, but also just how much needs to be done to enable this.

The report finds that digital platforms (in e-commerce and other areas) could lift their contribution to SA’s GDP twentyfold to R91.4bn by 2035, increasing it from a modest 0.02% to 1.38%, and could create as many as 340,000 jobs.

Nor is it just about the macroeconomic contribution. Home-grown e-commerce platforms such as Takealot and Checkers 60/60 give small enterprises in rural areas access to a countrywide market, and they give rural or township dwellers access to the same supermarket prices and goods as in suburbia. They help in other words to promote economic inclusion.

But to realise their potential SA needs cheaper, faster and more widely accessible broadband. It needs much less burdensome regulation for businesses. It needs many more science, technology and engineering graduates. And it needs more focus on digital transformation by all social partners. The report is a start to that conversation.