The rise of the digital economy and the transformative role of digital applications have affected all spheres of life, from communications to business, entertainment, education and government, to list a few. The rapid growth of the digital economy is considered a veritable megatrend, playing a fundamental role in radically remaking our everyday experiences and interactions. The shift has been nothing short of breathtaking, with numerous commentators arguing we are in a “digital turn”.
These shifts have been so far-reaching that they demand a complete rethink of public policy and everyday behaviour to harness, amplify, and navigate the benefits of this megatrend for shared prosperity, wealth creation, and universal enjoyment. The 16th United Conference on Trade and Development convened in the last quarter of 2025 to consider how digitalisation could benefit all and help protect the planet. One of the main topics of discussion at the conference was bridging divides through “harnessing artificial intelligence, data and digital trade while closing gaps in access and skills”.
From an African perspective, enthusiasm around the digital revolution must be tempered by caution around the “digital divide”. This divide initially referred to the gap between those with cellphone and internet access and those without. Today, the term has expanded to include the technical and financial ability to utilise the internet to access a wide range of business and social services. At a global level, that digital divide represents the growing chasm between wealthy nations and developing countries, urban and rural populations, educated youth and older, less educated individuals, men and women.
South Africa occupies a unique position as having the highest internet penetration among African countries. However, similar to other countries, this transformation has been uneven and unequal, locking key segments of the populace out of the digital economy. As a result, many township dwellers remain excluded from the enhanced convenience in banking, ease of communication, seamless access to the labour markets, information, and health services. What mainstream suburbanites and those who reside in South Africa’s metropoles take for granted – such as high-speed internet that enables online shopping, trading, and banking services, and high-end internet-of-things products like smart homes and first-world streaming services – remain largely out of reach for those in our townships.
This situation persists due to deficits in infrastructure and installation backlogs in fibre and unreliable LTE, and has resulted in lower access to smart devices, lower digital access, and limited digital literacy levels. These factors have conspired to stymie the potential of the township-based digital economy.
Despite a progressive digital policy by the state (aided by significant rapid infrastructural development by the state and private-sector actors) township residents remain largely deprived of digital access due to lower smartphone ownership, constraining costs of Wi-Fi and data, and unstable networks due to theft or vandalism of cables, batteries and other infrastructure.
Digital literacy is constrained among this key segment of South Africa’s population. Critically, penetration remains at a superficial level of basic communication, social media and entertainment, with business, banking and fintech solutions still developing. A good illustration of the untapped potential of the digital services in townships is in education, where massive open online courses have had limited uptake despite chronic under and unemployment.
Similarly, fintech solutions could empower small businesses, but adoption is slow due to trust issues and lack of awareness.
The above challenges point to the conclusion that digital inclusion is a core social issue and not a mere technological challenge, as it is currently being framed. Accessing the digital economy is fundamentally about social justice. Framing is critical – equity of access must foreground debates around bridging the digital divide. In this regard, South Africa must implement a multi-anchored strategy where the four central pillars of affordable access, infrastructure resilience, digital literacy and economic enablement must take centre stage.
Turning to solutions, priority must be given to expanding mass access via the establishment or piloting of community Wi-Fi hubs and mesh networks. Additionally, emphasis must shift to negotiating public-private partnerships to facilitate low-cost data plans. Private sector players must double down on investment to protect network infrastructure and limit the impact of theft.
A big issue remains the accelerated deployment of fibre in underserved areas as well as measures aimed at promoting integration of digital skills training into schools and community centres. On the entertainment front, the promotion of local content creation in local languages would drive higher levels of engagement.
The digital economy’s potential to enable economic growth by supporting township entrepreneurs through fintech education must be unlocked. It offers unprecedented opportunities for growth and inclusion; however, in the absence of deliberate action, South Africa’s townships risk being locked out of this future. Bridging the digital divide requires more open collaboration between all spheres as digital inclusion is not optional – it is essential for shared and prosperous future.
Brendan Boyce is a Lecturer in the Faculty of Social Sciences and Humanities at the University of Fort Hare. This article is based on a presentation given by the author at the Science Forum South Africa 2025.