Distinguished Guests, Ladies and Gentlemen,

It is an honour to address you today at this esteemed gathering hosted by the GSMA, an organisation that has been at the forefront of driving cooperation, upholding standards, and fostering innovation in the global mobile communications ecosystem.

As we gather here to discuss how we can harness technology to build a more connected, sustainable, and prosperous future, I would like to share with you South Africa’s vision for leveraging connectivity, especially mobile technologies, to drive inclusive economic growth.
 
The Role of Connectivity in Economic Growth

In the modern world, mobile connectivity is not just an added convenience—it is a fundamental driver of economic growth. Mobile technologies and digital infrastructure are the backbone of a more inclusive, sustainable, and globally competitive economy.

For South Africa, connectivity has the potential to be the great equaliser. As we look to grow our economy and create opportunities for all South Africans, we must ensure that mobile connectivity becomes a catalyst for growth, particularly for those who have historically been excluded from the mainstream economy.

South Africa, with its fast-developing mobile ecosystem, is a prime example of how connectivity can create new opportunities. The country’s mobile industry has grown rapidly in the last decade, with mobile broadband penetration increasing significantly.

According to the GSMA’s 2024 Digital Economy, South Africa’s mobile industry contributed approximately 3-4% of the country’s GDP.

This contribution is set to grow as mobile penetration deepens particularly of smart devices and more South Africans, particularly in rural areas, gain access to mobile broadband.

Expanding Connectivity: Bridging the Digital Divide

However, despite this progress, there are still significant gaps in access to affordable and reliable connectivity, particularly in rural and underserved areas. While mobile broadband penetration has reached 85% in urban areas, only 56% of rural South Africans (GSMA, The Mobile Economy Sub-Saharan Africa 2023) have access to mobile internet.

These disparities create a digital divide that limits the ability of millions of South Africans to access the benefits of connectivity, such as online education, e-commerce, mobile banking, and government services.
It is crucial that we address these gaps. Access to mobile networks and affordable data is not a luxury—it is a necessity for South Africa’s socio-economic development.

Without increased investment in expanding mobile infrastructure, we risk leaving behind large segments of our population, particularly in rural areas, who would otherwise benefit from the opportunities technology can provide.

The good news is that mobile networks have proven to be one of the most cost-effective ways to bridge the digital divide. In South Africa, mobile technologies have been crucial in connecting people in even the most remote areas. However, to fully leverage this potential, we must ensure that mobile operators, investors, and innovators have the right regulatory environment and incentives to continue investing in infrastructure.

Investment in Connectivity for Economic Inclusion

Ladies and gentlemen, we know that investment in connectivity is a key enabler for driving inclusive economic growth. Studies consistently show that expanding broadband access leads to tangible economic benefits.

According to research by the World Bank, a 10% increase in broadband penetration can lead to a 1.38% increase in GDP growth in developing countries. In South Africa, this translates to creating new opportunities for millions of people, especially in underserved communities.

In particular, mobile broadband infrastructure is critical for small businesses and entrepreneurs who rely on mobile networks to access markets, find suppliers, and interact with customers.

By improving mobile coverage and affordability, we can foster innovation, unlock new entrepreneurial opportunities, and stimulate local economic activity.
 
As an example, South Africa’s mobile banking platform, MTN Mobile Money, has empowered millions of previously unbanked citizens by providing access to essential financial services. It has been a game changer, especially in rural areas where traditional banking infrastructure is sparse.

Similarly, mobile-driven solutions in agriculture, such as WeFarm, are helping farmers in South Africa access information, markets, and financing through simple SMS-based platforms, improving productivity and income opportunities. This is one of the many examples of how connectivity can empower individuals and communities to drive their own economic success.

The Need for Sustainable Investment in Mobile Networks

To further unlock the potential of connectivity for economic growth, we need to ensure that investments in mobile networks continue at scale, especially in underserved areas. There is an urgent need for both public and private sector investment in 4G and 5G infrastructure, as these technologies will enable faster, more reliable connectivity that is crucial for economic growth.

For example, 5G networks, which promise download speeds up to 100 times faster than 4G, are expected to revolutionise industries such as healthcare, manufacturing, and transportation, creating new opportunities for business innovation and job creation.

However, building this infrastructure requires significant investment. To attract investment, it is critical that we create a supportive regulatory environment that encourages both local and international players to invest in South Africa’s digital infrastructure. This is a key priority for my term as Minister.

The South African government is actively working to improve spectrum management and lower the cost of data to make mobile services more affordable and accessible. By making mobile data more affordable, we can enable more South Africans to participate in the digital economy, which will help unlock new economic opportunities.
 
Mobile Connectivity and Job Creation

One of the most significant impacts of mobile connectivity is its ability to create jobs. The mobile ecosystem supports millions of direct and indirect jobs across South Africa, from network engineers and technicians to digital marketers and app developers. The mobile sector is also a driver of job creation in other industries, as more businesses adopt mobile technologies to streamline operations and engage with customers.

However, to ensure that technology complements job creation rather than displacing workers, we must focus on initiatives that empower workers with digital skills and promote job creation in the digital economy.

The South African government has taken several steps to build a digitally skilled workforce ready for a tech-driven economy. Initiatives such as the SA Youth.mobi Platform connect young people with digital training and job opportunities, while the Department of Communications and Digital Technologies Digital Skills Programme offers training in data science, AI, and cybersecurity in partnership with local universities.

Additionally, the coding and robotics curriculum introduced in schools equips learners from an early age with essential digital skills, and the Future Skills Initiative prepares youth and adults for tech-focused careers. These programmes empower South Africans across the country, particularly in underserved communities, to engage fully in the digital economy.

The key now is to significantly increase further investment in education, particularly in digital skills, to ensure that the benefits of technology are felt by all South Africans.

The Path Forward: Working Together for Growth

Colleagues, as we look to the future, South Africa’s vision for economic growth is centred around digital inclusion, sustainable development, and the creation of new opportunities for all.

The GSMA’s leadership in driving innovation, sustainability, and interoperability in the global mobile ecosystem is a key asset in helping us realise this vision. Your commitment to improving mobile network standards and driving sustainability across the industry aligns closely with South Africa’s goals for the future.

The South African government is committed to supporting policies that foster digital growth, encourage investment in mobile infrastructure, and ensure that all South Africans benefit from connectivity. We look forward to continued collaboration with the GSMA and other stakeholders to build a more connected, inclusive, and prosperous future for South Africa and the continent as a whole.

To close, the transformative power of mobile connectivity has already reshaped our economy, but there is so much more to be done.

To truly unlock the potential of mobile technologies for economic growth, we must invest in expanding infrastructure, improving affordability, and ensuring that digital skills are accessible to all.

By working together, we can ensure that technology becomes a force for good riving economic growth, creating jobs, and improving the lives of all South Africans.

Thank you.