Unlocking South Africa’s digital potential through reforms

South Africa has made significant strides in developing its digital economy, but according to a recent report by GSMA, the country is lagging behind its peer group nations when it comes to digital competitiveness. Angela Wamola, Head of Sub-Saharan Africa at GSMA, discussed the challenges and opportunities for unlocking South Africa's digital potential through reforms in a recent CNBC Africa interview. Wamola highlighted the importance of digital technology in driving growth in the overall economy, emphasizing the role of telecom operators as the foundation for the digital economy. One of the main reasons for South Africa's struggle to compete digitally is the high costs associated with building and operating networks in the country. Challenges such as difficulty in accessing rights of way, high electricity costs, and the impact on network infrastructure contribute to this issue. With the cost barrier in place, South Africa has been unable to keep up with the digital advancements seen in other BRICS countries and beyond. To address these challenges, Wamola outlined six new policy recommendations in the report to drive growth and digital adoption in South Africa. This includes leveraging emerging technologies like 5G and IoT, as well as ensuring efficient allocation of resources such as spectrum. Collaboration between government, industry, and key stakeholders is crucial in implementing these policies and fostering a sustainable investment environment that encourages long-term growth in the digital economy. Behind the scenes, discussions are ongoing on how to create a regulatory framework that balances the sector's needs while considering the economic impacts. Stakeholders are working together to expand digital adoption and inclusion, with a focus on improving affordability of digital devices and providing digital skills training for youth, women, and MSMEs. By maximizing inclusion and growth through collaborative efforts, South Africa aims to fully leverage the potential of its digital economy. In conclusion, unlocking South Africa's digital potential through reforms requires a collective effort and commitment from all stakeholders involved. By addressing policy and infrastructure challenges, the country can position itself as a leader in the digital economy and drive sustainable growth and development for the future.