In the latest report from the GSMA, mobile technology takes centre stage in South Africa’s economic transformation.
Mobile operators in the country aren’t just driving the digital economy—they’re shaping the nation’s future in a big way.
This isn’t just about flashy tech, though.
Mobile connectivity underpins the economy, contributing nearly R200 billion annually and providing thousands of jobs.
But the report also sheds light on the challenges—think policy gaps, outdated infrastructure, and barriers—threatening to stunt progress.
How mobile is making waves
Mobile operators have set a high standard with near-universal 4G coverage, substantial revenue, and contributions of about 4 to 5% to South Africa’s GDP.
They’re leading the digital charge, showing just how pivotal the telecom industry is to overall economic health.
Yet, the sector faces unique pressures, including the high cost of electricity and the impact of crime on network infrastructure.
For mobile to continue being a growth driver, the industry needs both a supportive policy environment and fresh investments to truly thrive.
Current challenges: Policy and investment
One standout issue from the report is South Africa’s outdated digital infrastructure policies. It’s time for a serious update.
Sure, the National Development Plan, SA Connect, and other government initiatives cover digital sector growth. But there are still gaps in implementation which create uncertainty for investors.
For example, there isn’t a clear policy in place for sunsetting 2G and 3G networks, and it now impacts spectrum access and investment strategies.
The report also emphasises the need for effective measures to address these challenges:
- Spectrum policy: With clear guidelines and a collaborative approach, South Africa could make more spectrum available for new technologies.
- Investment in network security and power supply: The cost and reliability of electricity remain a significant challenge.
- Affordable access to digital tools: High costs of imported devices due to taxes keep low-income households from participating fully in the digital economy.
From policy to action
To move from planning and talking to action, the GSMA report suggests several key steps. The most pressing are device tax and regulations.
Updating the tax structure on imported devices could make digital tools more affordable, especially for low-income households.
Additionally, a robust regulatory framework will be essential to support the sustainable development of South Africa’s digital economy.
South Africa has the potential to be a digital leader in Africa, but the journey will need more than just good intentions.
