Naspers Sees E-Commerce Boosting South Africa’s Economy by $5.2bn
TLDR
- Naspers predicts e-commerce and digital platforms to add 91.4 billion rand ($5.2 billion) to South Africa's economy by 2035.
- Joint report by Naspers and the Mapungubwe Institute projects this growth to contribute 1.38% to the nation's GDP in the next decade.
- Accelerated economic growth reliant on energy stability and improved infrastructure for full potential utilization of South Africa's market.
Africa’s largest company by market value, Naspers, projects that e-commerce and other digital platforms could contribute 91.4 billion rand ($5.2 billion) to the South African economy by 2035. A joint research report by Naspers and the Mapungubwe Institute for Strategic Reflection (Mistra) finds this growth could account for 1.38% of the nation’s GDP within the next decade.
Naspers, the owner of South Africa's leading online retailer, Takealot, is expanding its services to include one-hour deliveries, positioning itself against Amazon, which recently entered the local market.
The anticipated economic injection could occur sooner if South Africa’s growth rates rise to around 3%. Current growth has been stymied by energy shortages and collapsing infrastructure, limiting the economy’s ability to capitalize on its youthful population and upper-middle-income market.
Key Takeaways
Naspers’ vision for South Africa’s digital economy highlights the potential for significant economic growth through the expansion of e-commerce and digital platforms. With projections of a $5.2 billion contribution to GDP by 2035, the company’s initiatives, particularly through its online retail arm Takealot, reflect a broader shift toward digitalization in the country. This growth could create up to 340,000 jobs, addressing one of the world’s highest unemployment rates. However, realizing this potential will require accelerated reforms, infrastructure investment, and sustained economic growth. Naspers' shares have gained over 16% this year, valuing the company at 662 billion rand, as of Tuesday afternoon.
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