Meta's platforms already contribute R16.5 billion annually to South Africa's economy, and artificial intelligence could add a further R528 billion to GDP over the next decade, according to a new report from research firm Public First commissioned by Meta.
The report, titled Metz Impact in South Africa, found that 910,000 small and medium enterprises are using apps including WhatsApp, Facebook and Instagram as core business infrastructure – bridging the divide between large corporations, a vibrant SME sector and the informal economy. Nine in 10 online businesses on Meta's platform say the tool 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, informal traders are using WhatsApp Business to manage orders, coordinate with suppliers and reach customers beyond their nearest streets – a pattern the report says allows informal businesses to operate with the efficiency of formal businesses.
Balkisa Ide Siddo, director of public policy for sub-Saharan Africa at META, said platforms are doing more than just enabling commerce. “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, that's real economic inclusion in action,” she said.
“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,” Siddo said.
Meta's 2Africa submarine cable has landed in the Western Cape, Eastern Cape and KwaZulu-Natal provinces. By 2035, it could increase South Africa's GDP by R62.7 billion annually and bring an additional 660,000 people online. The report notes that 94% of online adults in South Africa say it is significantly easier to access reliable internet than it was a decade ago – although expanding affordable access beyond major cities is essential for the next phase of growth.
On open-source AI, the report highlights important possibilities. It estimates that with the right combination of investment, infrastructure and innovation, AI could add R528 billion to South Africa's GDP by 2035. 73 percent of online South Africans believe AI developed within sub-Saharan Africa will be critical to the continent's economic growth, while 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 create solutions for local industries, languages and communities without prohibitive licensing costs. One example cited in the report is that of Foundationmate, a South African company built on Meta's LLAMA model, which has created an AI study assistant that more than 3 million learners can access directly on WhatsApp and Messenger.
Alison Neale, director of Public First, said the findings underline the scale of South Africa's digital opportunity. “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 firms 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,” he said.