As the global digital economy develops at twice the global gross domestic product (GDP) growth rate, with over 50% of the global GDP expected to be digitalised by the end of 2022, Africa’s digital economy is poised to explode.

As part of their strategy to fight the global Covid-19 pandemic, many countries have accelerated digital transformation and advanced the digital economy, increasing social resilience and promoting economic recovery, says Huawei Enterprise Business Group global president Ryan Ding.

South Africa is well positioned to be the leading digital economy on the African continent, and even in the developing world, bridging many of the social and economic divides within the country.

By 2025, one in six of the world’s Internet users will be in Africa, with South Africa poised to make that transition, says Huawei Southern Africa president Leo Chen, highlighting the country’s 85% mobile broadband penetration, growing cloud and artificial intelligence (AI) capabilities and the promising developments taking place in the energy sector.

According to Communications and Digital Technologies Deputy Minister Philly Mapulane, the Department of Communications and Digital Technologies’ (DCDT’s) Digital Economy Strategy Framework and the Digital Economy Masterplan will ensure that South Africa’s digital economy, at a minimum, constitutes 30% of the economy by 2030.

Mapulane, speaking at Huawei’s Eco Connect 2022 event, held in Johannesburg on July 8, outlined government’s vision for South Africa to be the number one economy in Africa and the wider developing world across a number of technological fields, including mobile connectivity, mobile broadband, the cloud, software development and talent building.

“Our department is acutely aware of the need for digital transformation in both the private and public sectors. We, in the DCDT, subscribe to the vision of being a leader in enabling a connected and digitally transformed South Africa. In our mission, we see the department leading South Africa’s inclusive digital transformation journey through creating an enabling environment towards a digital society to foster socioeconomic growth,” he says.

While digital plays an increasingly large role in the global economy, reaching that point will require extensive investment in innovation and digital skills, as well as partnerships between State players, enterprise-scale corporations, and small, medium-sized and microenterprises.

Chen says that Huawei sees the country’s clear potential, particularly within a global context; however, realising that potential requires a combination of collaboration and long-term vision.

“We want our partnerships to help South African companies build South African solutions,” he says.

Mapulane acknowledged that partnerships are crucial to achieving this ambition, highlighting Huawei’s various initiatives in developing these fields.

Overall, Huawei spent an accumulative $126-billion over the past decade on research and development, with R21.3-billion – 22.4% of Huawei’s total revenue – spent in 2021, says Ding.

“Huawei is also actively investing in South Africa,” he says, committing to continued investments, with a focus on information and communication technology (ICT) and digital innovation, facilitating digital transformation.

“We need to enable local partners and people to get the most advanced technology,” adds Huawei South Africa CEO Spawn Fan, further underlining the importance of partnerships in achieving the milestones Huawei has recorded throughout its 24 years of operation in South Africa.

In 2019, South Africa’s operators and Huawei deployed Africa’s first fifth-generation (5G) base station.

“Today, the number of 5G base stations in South Africa is in excess of 2 800,” says Mapulane.

Huawei has also been involved in building local data centres and launching the Huawei Cloud, through which it has been promoting the use of the cloud and AI technologies through over 200 cloud partners.

In addition to the company’s investments in digital infrastructure, the DCDT also points to various skills development initiatives, including Huawei’s Seeds for the Future, ICT Academy Programme, and Fourth Industrial Revolution talent training initiatives.

Huawei partnered with the DCDT to establish a global programme, The Seeds for the Future initiative, which aims to help cultivate young talent to be competitive in the workplaces of the future, with 102 seed students having progressed through the programme since 2016.