Bridging SA's Digital Divide

In a landmark decision, South Africa's Competition Appeals Court has greenlit the merger between Vodacom and Maziv, paving the way for the next phase of growth in telecommunications. As part of the transaction, the parties have committed to spending R12 billion in rolling out fiber connectivity particularly in underserved areas. This move signals a bold step toward universal connectivity in South Africa, with continued capital raising and M&A in the sector. 

The B20 Digital Transformation Task Force was convened under South Africa’s G20 presidency to develop a coherent, inclusive, and actionable digital transformation roadmap. As a member of the B20 Digital Transformation Task Force, we see the regulatory framework as a key to propel economic growth through inclusive digital strategies. 

The task force policy paper includes recommendations, policy actions, KPIs, and case studies to guide G20 nations in implementing impactful digital policies. Stark statistics highlight the stakes: Over 2.6 billion people remain offline, with the majority in developing regions. According to data from the International Telecommunication Union, global internet penetration stands at 83% in urban areas, whereas internet penetration in rural areas is only at 48%. An overwhelming 96% of all individuals who remain offline live in developing countries, highlighting the persistent global development gap in digital usage. 

According to the latest World Economic Forum Future of Jobs Report, employers anticipate that 39% of core job skills will fundamentally change by 2030, yet approximately 11% of workers globally are unlikely to receive adequate training to cope with these changes. There is a lack of global alignment on AI governance, leading to ethical, regulatory, and trust challenges. Digital public infrastructure ecosystems provide a platform for digital development globally, and should be promoted by governments. 

Africa's connectivity gap, high data costs and unconnected populations perpetuate inequality and hinder growth. Government, corporates, and society must collaborate. 

The B20's core recommendations provide an actionable framework for Africa 

First, universal connectivity as a human right: Expand inclusive modern digital infrastructure and connectivity to deliver affordable, reliable access to digital services, particularly in underserved regions. Second, digital literacy for workforce transformation: Strengthen national digital literacy systems to equip the workforce with foundational and advanced capabilities aligned to future-oriented labour market demands. Third, ethical and inclusive AI governance: Align countries to a coherent and accountable AI governance framework as a shared basis for ethical development and regulation of AI. Fourth, digital public infrastructure for inclusive growth: Promote secure and inclusive digital public infrastructure ecosystems that incentivise private sector innovation and investment. Finally, fostering global alignment on these fronts mitigates ethical and trust challenges. 

The South African landscape 

South Africa's telecom landscape has evolved remarkably, particularly in urban metros where fiber infrastructure rivals global standards. National long-distance fiber networks and undersea cables provide robust backbone connectivity. Yet, the real challenge—and opportunity—lies in the last mile particularly in rural areas and lower socio-economic markets. 

In these underpenetrated areas we predict significant strides over the next five to ten years, driven by innovative business models tailored to diverse consumers. We've seen players like Vumatel, Octotel, or Fibretime adopting prepaid models, allowing township residents to access unlimited fiber for just a few rands per day. This contrasts sharply with traditional monthly subscriptions prevalent in affluent suburbs. 

Digital connectivity is fast becoming an essential service for South Africans. Lowering the cost of data, along with cheaper smartphones, allows people to bridge economic divide by giving equal access to education, healthcare and e-commerce. 

This isn't mere optimism; it's grounded in ongoing deployments. However, what works in metros won't suffice in townships. Flexible pricing and consumer-centric approaches are key to driving uptake. As Africa grapples with being a global laggard—where vast populations remain offline and data costs soar—these innovations could position South Africa as a continental leader. 

This connectivity push aligns seamlessly with broader global digital transformation imperatives; especially as artificial intelligence reshapes industries. 

ChatGPT came out in November 2022, and here we are in August 2025—the space has moved rapidly in a relatively short period of time. While South Africa isn't falling irretrievably behind, it must accelerate the adoption of AI. The government's draft national AI policy is a start, but it must keep evolving with the developments. 

There are three potential pillars for South Africa's AI advancement. 

First, policy: A common globally aligned regulatory framework that aims to foster innovation and build trust. 

Second, capital: the large global technology companies pour billions—equivalent to a significant portion of South Africa's GDP—into AI. Africa can't compete head-on but can leverage local data for tailored applications. Government incentives, such as tax breaks under Sections 12J or 11D, could spur corporate investment in model training and services. 

Third, talent: Urgent curriculum reforms in TVET colleges and universities to produce data scientists and AI specialists. Learning from Singapore's revamped curricula with over 1 000 AI courses, or global best practices, is a good case study. Many schools lack computer labs, hindering student access. Empowering teachers is also crucial—Italy's model of training educators in over 8 000 schools in its National Digital School Plan offers a blueprint. Affordability barriers compound the literacy issue: Devices like tablets or phones must be cheap, and data costs manageable. We also advocate for public-private partnerships for zero-rating educational websites, ensuring free access to learning resources. 

We're taking baby steps, but we're moving in the right direction. 

In conclusion, South Africa's digital future brims with potential. 

With mergers fueling infrastructure, AI policies maturing, and literacy initiatives scaling, the nation can bridge its digital divide. This isn't just about faster internet—it's about empowering millions, boosting GDP, and securing a competitive edge. The time for bold investment and inclusive policies is now.