South Africa's digital economy is on track to expand rapidly, with new research projecting growth from R495bn to R874.5bn by 2035.
according to Meta's influence in South Africa report By Public First, Meta's platforms already contribute R16.5bn annually, while AI could add a further R528bn to GDP over the next decade.
With 910,000 SMEs using apps like WhatsApp, Facebook and Instagram, digital tools are reshaping the way businesses operate, connect and grow in both the formal and informal sectors.
SMEs are building digital businesses from township to city For South African small businesses, Meta's platforms have become core business infrastructure – bridging the divide between large corporations, a vibrant SME sector and the informal economy. 90% of online businesses on Meta say the platform has opened up new markets for them, while 81% of online adults say the platform has helped them feel part of their community.
From spaza shops in Soweto to design studios in Cape Town, these are not passive users – these are business owners who have made Meta's platform central to their survival and growth. In townships across South Africa, informal traders are using WhatsApp Business to manage orders, coordinate with suppliers, and reach customers beyond their nearest high street – this represents a pattern where digital tools help informal businesses operate with the efficiency of formal businesses.
Balkisa Eide Siddo, director of public policy in sub-Saharan Africa at META, said: “What stands out about South Africa is how our platforms are bridging the gap between the formal and informal economy. When a township merchant can use WhatsApp Business to manage orders with the same efficiency as a retailer in Sandton, this is real economic inclusion in action.
“This research confirms what we see every day: 910,000 South African SMEs are not only using our platforms, they are building livelihoods on them. And with 2Africa Cable now reaching three provinces and open-source AI tools like LLAMA available at no cost to any South African developer, the infrastructure for the next phase of growth is already here.
“Our commitment is to continue investing in the tools and open technology that help South African businesses compete on their own terms.”
Infrastructure to power the next phase of growth: Meta's investment in connectivity is helping to lay the foundation for South Africa's digital future. The 2Africa submarine cable, backed by substantial META investment, has landed in the Western Cape, Eastern Cape and KwaZulu-Natal provinces and is set to accelerate digital development. By 2035, it could boost South Africa's GDP by R62.7 billion annually and bring 660,000 additional people online.
94% of online adults in South Africa say that access to reliable internet is now significantly easier than it was a decade ago – evidence of substantial progress, although the next phase of growth requires expanding affordable access beyond major cities.
Open-source AI: South Africa's next growth frontier:
The research highlights the transformative potential of open-source AI for South Africa's economy and innovation ecosystem:
– With the right combination of investment, infrastructure and innovation, AI could add R528bn to South Africa's GDP by 2035.
– 73% of online South Africans believe that AI developed within sub-Saharan Africa will be critical to the economic growth of the continent.
– 69% of online business leaders say they would definitely adopt open-source AI tools if they were accessible.
Meta's open-source AI models and developer tools – including LLAMA and No Language Left Behind, are helping South Africans build solutions for local industries, languages and communities without prohibitive licensing costs.
Foundamate, a South African company built on Meta's LLaMA model, has created an AI study assistant that over 3 million learners can access directly on WhatsApp and Messenger – solving South African educational challenges, made possible because advanced AI technology was available for free.
Alison Neale, Director of Public First, said: “South Africa's digital transformation is creating new opportunities for businesses, creators and consumers alike. The findings show that Meta's platforms are helping South African companies grow across the formal and informal sectors, supporting entrepreneurship and strengthening participation in one of the world's fastest-growing digital economies.
“With the right combination of infrastructure, platform access and open-source AI, the edge is critical for South Africa.”
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