South Africa's deepening unemployment crisis is placing enormous pressure on communities, particularly youth, who are entering an increasingly competitive job market. As traditional employment opportunities decline, entrepreneurship is emerging as an important path to economic participation and long-term sustainability.
However, success in today's global digital economy demands more than just business ambition. Digital skills such as coding, data analytics and artificial intelligence literacy are becoming essential tools for innovation, competitiveness and growth. By expanding access to digital education and entrepreneurship training, South Africa has the opportunity to empower a new generation of entrepreneurs, boost economic inclusion and unlock sustainable growth locally and across the continent.
“Through the development of key digital skills, entrepreneurs can have a significant impact on South Africa’s economic growth,” says Raissa Kader, academic program leader at the MANCOSA School of Accounting, Finance and Tax.
essential skills
Entrepreneurs today operate in an environment driven by digital platforms, data, automation and artificial intelligence. Digital skills are no longer optional for these entrepreneurs; They are fundamental to business survival and competitiveness in the modern economy. We can even say that digital skills have become the new currency of entrepreneurship as they directly determine whether a business can compete, grow and remain relevant in a technology-dominated economy.
“Skills such as coding, data analytics, cybersecurity awareness, digital marketing and AI literacy enable entrepreneurs to improve operational efficiency, reduce costs through automation and make faster, evidence-based decisions. According to the OECD Going Digital Toolkit, the right mix of digital competencies accelerates technology diffusion, improves productivity and reduces skills mismatches that hinder economic performance. Coding enables custom solutions and automation. Data Analytics uncovers customer insights. And AI literacy is becoming especially important as artificial intelligence reshapes industries from finance and education to healthcare and retail,” says Kader.
The World Economic Forum's Future of Jobs Report 2025 confirms that AI is expected to disrupt almost every industry, increasing the skills needed in global labor markets.
“In practical terms, these skills reduce costs (for example, through automation), open up new revenue streams (for example e-commerce, digital products), and future-proof businesses against disruption. “Entrepreneurs who master them quickly turn challenges like rapid technological change into opportunities for faster growth,” Kader explains. “Ultimately, digital skills empower entrepreneurs to innovate, stay agile, and compete effectively in a rapidly evolving global economy.”
global competitiveness
South Africa has long produced tertiary graduates with the skills and work ethic that are highly sought after by international corporates. Many South Africans are headed straight to international pastures after graduation to ply their trade. But are South African entrepreneurs viewed in the same light? Advancements in technology now provide a platform to showcase one's capabilities.
Kader says, “South Africa's entrepreneurial talent is undeniable, but geography and infrastructure have historically limited access to global markets. Digital skills remove those barriers. Digital skills help South African entrepreneurs overcome traditional geographic and economic barriers by enabling them to participate in the global digital ecosystem. Through digital platforms, entrepreneurs can market products internationally, access online marketplaces, engage in remote work opportunities and provide services across borders. Can do.”
The scale of the opportunity is already visible. According to the WorldwideWorks South Africa Online Retail Report 2024, South Africa's e-commerce market is set to reach R71bn in 2023, an increase of 29% year-on-year. Entrepreneurs who have the digital skills to participate in that ecosystem are already competing globally. Those who do not do this are rapidly being left behind.
Data analytics enables entrepreneurs to better understand global consumer trends and tailor products to international audiences. Digital communication tools facilitate collaboration with global partners, suppliers and customers in real time.
“Importantly, digital transformation supports inclusivity. South African entrepreneurs from disadvantaged communities can use digital platforms to access funding opportunities and wider customer networks. This creates opportunities for economic participation and entrepreneurial development that were not previously accessible. As Africa's digital economy continues to expand, entrepreneurs with strong digital capabilities will be better placed to contribute to economic growth,” says Kader.
bridging the unemployment gap
Without addressing the unemployment crisis of South Africans armed only with senior certificates, unemployment levels among tertiary graduates are rising significantly. The government has not been able to create enough jobs to deal with the current crisis.
This has forced youth who are often responsible for supporting multiple family members, and sometimes families, to turn to entrepreneurship as a means of escaping poverty. By encouraging digital skills among the youth, we will equip them with a skill set so that they will not have to depend on the government to create jobs for them.
Kader says, “Access to digital education is extremely important to address both youth unemployment and economic inequality in South Africa. The economy is increasingly digital, yet many young people still do not have access to the digital infrastructure and opportunities needed to meaningfully participate in the modern workforce. Digital education equips individuals with practical and transferable skills that improve employability and entrepreneurial potential. Digital communications, coding, financial literacy, data analytics, cybersecurity awareness and AI “Skills like literacy are increasingly being valued across industries.”
According to Statistics South Africa's Quarterly Labor Force Survey Q1:2025, youth unemployment for people aged 15 to 34 stood at 46.1%, an increase of 9.2 percentage points over the previous decade. Of the 4.8 million unemployed youth in that period, 58.7% had no prior work experience. That means almost six out of ten youth are still waiting for their first opportunity. In a labor market that increasingly demands digital capabilities, a young person without digital skills faces a compounded disadvantage.
According to the World Economic Forum, “More than 60% of future jobs are projected to require digital skills. Digital education is not a complementary offering; it is a core intervention. It creates alternative pathways into freelancing, entrepreneurship and the growing gig economy. Digital education also contributes to reducing inequality by providing individuals from diverse socio-economic backgrounds access to global knowledge networks and online business ecosystems. Public-private partnerships, investment in digital infrastructure and curriculum innovation all help to ensure that It is essential that digital transformation becomes inclusive rather than exclusionary,” says Kader.
tertiary sector role players
Higher education institutions should incorporate digital skills across all subjects, ensuring accessible learning opportunities for all students. MANCOSA's flexible online and distance learning model expands access to quality education for students limited by geography, finances or work commitments.
Kader says, “By integrating digital skills into accredited qualifications, the institute expands digital education into disadvantaged communities. Through strong industry partnerships, MANCOSA equips students with practical, workplace-ready capabilities while fostering innovation, entrepreneurship and lifelong learning. The goal is to develop graduates who can responsibly lead digital transformation and help bridge Africa's growing digital divide.”
Addressing Additional Challenges
Encouraging digital skills among youth is the first part of the challenge. Second, there are challenges familiar to entrepreneurs of any skill level.
“The most common barriers are cost, connectivity and confidence. The digital divide remains a significant challenge, particularly in rural and under-resourced communities, limiting full participation in the expanding digital economy. There is also a trust barrier. Many entrepreneurs hesitate to digitize financial or customer data due to concerns about cybersecurity, privacy and technical complexity. These concerns are understandable. According to IBM's annual Cost of Data Breach report, the global average cost of a data breach Now over $4 million, which is a potentially devastating impact for many SMEs,” says Kader.
However, these challenges are surmountable. Tackling these challenges requires a collaborative approach involving government, academic institutions, industry and the private sector. Investment in digital infrastructure and affordable connectivity is particularly important.
Kader says, “Most importantly, practical and practical digital education instills confidence in entrepreneurs to adopt technology strategically and responsibly. Entrepreneurs also need access to practical training and support ecosystem that helps them adopt technology strategically. The overarching goal is to demystify technology and position it not as a liability or a disruption, but as an enabler of productivity, innovation and inclusive economic participation.”
Digital transformation should be adopted gradually. Small businesses do not need advanced systems immediately; Even adopting basic digital tools like cloud accounting, digital payment systems and social media marketing can significantly improve business performance.
Building an inclusive digital future
South Africa's economic future will depend on the ability to equip entrepreneurs with the digital skills needed to compete in an increasingly technology-driven world. By increasing access to digital education, strengthening industry collaboration and supporting entrepreneurial innovation, institutions can help unlock sustainable growth and economic inclusion.
Although challenges remain around access, affordability and infrastructure, targeted investments and practical training can bridge the digital divide. Empowering entrepreneurs with digital capabilities is no longer optional; This is essential to reduce unemployment, boost innovation and build a more resilient economy.