Naspers Forecasts R91.4 Billion Boost from E-commerce to South Africa's Economy by 2035

In a groundbreaking forecast, Naspers Ltd., Africa's most valuable company, has laid out optimistic predictions for South Africa's digital economy. By 2035, e-commerce activities and digital platforms are anticipated to add an astounding R91.4 billion ($5.2 billion) to the country's Gross Domestic Product (GDP). This financial injection, should it realize, will raise the national GDP by 1.38%, a sizeable leap forward for an economy that has struggled with slow growth over the past decade.

At the forefront of this digital revolution is Takealot, South Africa’s leading online retailer owned by Naspers. A focus on service innovations, like one-hour deliveries, is poised to overhaul the local e-commerce landscape, enabling Takealot to compete even more fiercely with international giants such as Amazon.com Inc. Introduction of such rapid delivery windows adheres to a growing worldwide trend towards instant gratification consumerism, an evolution that is set to benefit the South African market.

The growth of digital platforms isn't just about improving convenience and consumer choice; it's expected to be a significant job creator. Naspers's report, developed with insights from the Mapungubwe Institute for Strategic Reflection (MIstra), suggests that the rise of e-commerce could generate as many as 340,000 jobs. This is a critical development for a nation that grapples with one of the highest unemployment rates globally.

The newly installed CEO of Naspers, Fabricio Bloisi, who previously nurtured the food-delivery business iFood, sees the e-commerce segment as a future profit generator. After years of strategic investment, Naspers's e-commerce division reported its first ever full-year trading profit, hinting at the promising trajectory of the online retail sector in South Africa.

Senior Researcher Machete Rakabe from MIstra underscores the potential acceleration of this economic boon if South Africa can bolster its growth rates to around 3% and simultaneously tackle infrastructure deficiencies. Despite averaging less than a 1% GDP growth over the past decade, due to energy crises and crumbling infrastructure, the adoption of digital commerce and rapid reforms could catalyze a turnaround.

The current government of national unity, which emerged after the African National Congress lost its parliamentary majority, is showing a renewed determination to stimulate economic advancement and facilitate inclusive growth. It's an essential step, argued Phuthi Mahanyele-Dabengwa, CEO of Naspers South Africa, as the country navigates early stages of the digital shift, reflecting a global trend that could unlock unprecedented economic value for South Africa.

Given the eventual recovery from the coronavirus pandemic, the projected growth in e-commerce stands as a testament to the resilience and adaptability of the South African economy. It also highlights the country's potential to tap into its youthful population and robust middle-income market, currently driving about 5 billion rand into the digital economy, to secure a prosperous economic future.