Naspers, Africa’s largest company by market value, is on track to inject a staggering R91.4 billion into the South African economy by 2035, driven by the growth of e-commerce and digital platforms. This ambitious projection is backed by research from Naspers and the Mapungubwe Institute for Strategic Reflection, which estimates that these sectors could contribute 1.38% to the country’s GDP within just over a decade.
E-Commerce Expansion
Naspers, the controlling shareholder of Prosus NV, has been strategically expanding its e-commerce footprint, with a focus on its flagship online retailer, Takealot. The company is enhancing its services to include rapid one-hour delivery for a range of products, positioning itself as a formidable competitor to Amazon.com, which entered the South African market in May 2024.
Under the leadership of new CEO Fabricio Bloisi, Naspers is aiming to transform its e-commerce division into a significant revenue generator. Bloisi, who previously built out the food-delivery business iFood, has already steered the division to its first full-year trading profit of $38 million for the year ending March 31. This milestone marks a critical point in Naspers’ journey, as years of investment in scaling its operations begin to pay off.
Economic Potential
The R91.4 billion economic impact predicted by 2035 could materialize even sooner if South Africa manages to boost its economic growth rates to around 3%, according to Machete Rakabe, a Senior Researcher at Mistra. He emphasizes the need for investment in infrastructure, including data centers and digital identity systems, to ensure widespread access and maximize the benefits of digital platforms.
Despite South Africa’s economic struggles, including an average GDP growth of less than 1% over the past decade due to energy shortages and crumbling infrastructure, the country’s youthful population and significant upper-middle-income market present a unique opportunity. Currently, digital platforms contribute approximately R5 billion to the economy, but there is potential for much more.
Renewed Optimism
The formation of a government of national unity, following the African National Congress’s loss of its parliamentary majority in the May 2024 elections, has sparked renewed optimism. Phuthi Mahanyele-Dabengwa, CEO of Naspers South Africa, highlights a newfound energy and commitment across various sectors to drive inclusive economic growth and shared prosperity.
As the digital landscape in South Africa evolves, it mirrors global trends, offering a rare opportunity to unlock substantial economic potential. According to the research, scaling these digital platforms could create as many as 340,000 jobs by 2035, providing a significant boost to a nation grappling with one of the highest unemployment rates in the world.
Naspers, headquartered in Cape Town, has seen its shares rise by nearly 16% this year, bringing the company’s market valuation to R659 billion. With its strategic focus on digital expansion, Naspers is not only poised to reshape the e-commerce landscape but also to play a pivotal role in South Africa’s economic future.
