The latest GSMA South Africa Digital Economy report was released this week as Cape Town plays host to the Africa Tech Festival.

The report revealed how mobile and digital services are accelerating economic growth and advancing social progress.

One of the main findings of the research was that digital transformation is expected to contribute nearly 20% to national Gross Domestic Product (GDP) by 2028, create around 300,000 jobs.

Researchers added that digital transformation and supportive policy frameworks can help benefit sectors such as education and healthcare while creating pathways to sustainable employment.

SA’s struggling communities

Moreover, the report showed how integrating digital technologies can empower underserved communities.

According to the report, marginalised towns and cities have seen tremendous growth by improving access to essential services, enhancing education and employment prospects, and fostering entrepreneurship.

“Digital transformation in South Africa holds tremendous potential to enrich lives, enhance economic resilience, and foster greater inclusion,” Angela Wamola, the Head of Sub-Saharan Africa at GSMA said.

“By harnessing the power of mobile and digital services, we can open up meaningful opportunities, particularly for rural communities, empowering them to participate fully in the nation’s digital future,” she added.

Empowering the youth

One of the other major findings within the report was the impact digital transformation had on youth employment.

The study found that as digital adoption accelerated, the demand for digital skills increases significantly.

Researchers found that youth employment opportunities in tech-driven sectors generally increase and this emphasised the need for comprehensive digital skills programmes to bridge workforce gaps.

A booming fintech sector

Lastly, the study highlighted that South Africa’s fintech sector is forecasted to generate annual revenue of approximately R 8.2 billion by 2024.

The report said that innovations in digital payments and financial tools will create financial inclusion, especially for micro and small small businesses.

IOL BUSINESS