Keynote address by Deputy Minister in The Presidency, Kenny Morolong, on the occasion of the AFSIC - SA Investment Summit, London, United Kingdom

Wednesday, 15 October 2025

Programme Director;
High Commissioner of South Africa to the UK, Mr Jeremiah Mamabolo;
Minister of Department of Public Works and Infrastructure, Mr Dean McPherson;
The entire South African Delegation;
The Investor Community;
Distinguished delegates;
Investors, Development partners;

Good morning.

It is with a great sense of privilege that I represent The Presidency of the Republic of South Africa at this conference: a platform that seeks to match African opportunity with global capital.

I bring you warm greetings from President Matamela Cyril Ramaphosa and from a nation that is proudly forging ahead, breaking new ground, and inspiring new ways, in spite of the many geopolitical and economic headwinds.

Resilience, reinvention and opportunities for all, are the hallmarks of the unfolding South African story. It is a story of a country that continues to reform, diversify, and digitise its economy while driving investment into sectors that power sustainable and inclusive growth.

Programme Director,

South Africa remains Africa's most globally integrated and diversified economy, with a Gross Domestic Product of approximately R7 trillion (about €348.5 billion). South Africa, hosts the continent's most advanced and diversified digital economy.

It has consistently proven itself as a trusted investment destination, with a diversified economy, strong governance, and over 180 Fortune Global 500 companies already headquartered in our country.

Its economy is underpinned by world-class infrastructure, a sophisticated financial services sector, and a rapidly expanding startup ecosystem.

The digital economy is projected to contribute between 15-20% of GDP in 2025, up from 8-10% in 2020, reflecting double-digit annual growth rates across e-commerce, fintech, and digital services.

Other sectoral contributions underpinning our economy are:

- Finance, Real Estate, and Business Services - 28%,
- Manufacturing - 17%,
- Trade, Catering, and Accommodation - 17%,
- General Government Services - 10%,
- Personal Services - 19%,
- Transport, Storage, and Communication - 9%.

South Africa's merchandise exports are valued at approximately R2.04 trillion (€101.7 billion), and imports at R1.94 trillion (€97.1 billion). This trade balance reflects our diversified industrial base and global competitiveness.

Ours is an economy that offers great opportunities, where manufacturing, financial services, mining, agriculture, energy, and digital industries intersect to create a vibrant and investment ready environment.

Distinguished delegates,

Technological infrastructure significantly influences South Africa's economic development by driving innovation, enhancing productivity, and improving access to global markets. However, its full potential is constrained by a persistent digital divide, especially between urban and rural areas.

Investment into tech infrastructure boosts several positive spin-offs, and that includes the following:

I. Boosts and promotes trade and investment:

- Enhances global integration: Reliable and high-speed ICT infrastructure is crucial for businesses to connect, trade, and compete internationally. South Africa is positioned as a regional digital hub, with submarine fibre optic cables providing high-speed international connectivity and attracting data center investments from global cloud providers like Amazon, Google, and Microsoft.

- Fosters e-commerce: Robust digital infrastructure supports the growth of e-commerce, allowing businesses of all sizes to reach broader markets. During the COVID-19 pandemic, this sector accelerated rapidly, driving sales for major platforms like Takealot.

- Attracts foreign investment: High-quality ICT infrastructure is a key factor for foreign companies looking to invest and set up operations in the country. A favourable digital environment supports the growth of technology hubs and startups, attracting venture capital.

II. Driving job creation and innovation:

- Supports a growing digital economy: As a major ICT market in Africa, South Africa's tech sector is a significant contributor to the nation's GDP and a source of new jobs. The platform economy, including services like Uber Eats and Mr. D, is also a rapidly growing source of employment.

- Fosters an entrepreneurial ecosystem: Reliable connectivity and access to digital tools enable small and medium-sized enterprises (SMEs) to innovate, streamline operations, and overcome geographical barriers to market entry. Tech hubs in cities like Cape Town and Johannesburg nurture startup ecosystems in fields such as fintech, health tech, and edtech.

- Increases productivity: Technology drives efficiency across all sectors of the economy. For instance, the Internet of Things (IoT) is used in mining, agriculture, and manufacturing to monitor and optimise operations.

III. Improving public services and social inclusion:

Enhanced digital infrastructure allows for the digitisation of public services, such as health, education, and social grants. E-government services improve accessibility, transparency, and administrative efficiency for citizens, especially in remote areas.

- Enables skills development: The expansion of digital infrastructure and e-learning platforms helps to upskill the population, equipping them with the digital skills necessary to participate in the modern economy.

- Boosts financial inclusion: Digital payment systems and mobile banking allow unbanked and underbanked populations to access financial services, fostering entrepreneurship and economic activity.

Programme Director,

South Africa has invested significantly in digital infrastructure, anchored by submarine cable systems such as Seacom 2.0, Equiano, and 2Africa, which connect the country to Europe, Asia, and the Americas. These cables, together with the West African Cable System (WACS), position South Africa as a regional hub for digital traffic.

Our State-owned digital infrastructure company, Broadband Infraco, is a Tier-1 investor and responsible for supporting 70% of key projects of national interest, as well as extensive terrestrial fibre networks. It plays a strategic role in ensuring sustainable and cost-effective international bandwidth for Government and national projects, while also extending connectivity into all neighbouring SADC countries.

The expansion of 4G and 5G networks, coupled with last-mile connectivity initiatives such as SA Connect, continues to drive access, affordability, and digital inclusion.

The data centre market is also expanding rapidly, with facilities established by Teraco, Equinix, Africa Data Centres, Vantage, and NTT. These hubs are critical to supporting hyperscale cloud services, big data analytics, and artificial intelligence applications, ensuring South Africa's competitiveness in the global digital economy.

Ladies and gentlemen,

South Africa has one of the largest and most advanced information and communications technology (ICT) markets in Africa, firmly positioning itself as a technological and innovation hub for the continent. The sector spans software development, hardware manufacturing, telecommunications, cybersecurity, digital services, fintech, and digital payments. It is a growing contributor to GDP and is recognised as both sophisticated and rapidly developing.

Several international corporations have established African headquarters or subsidiaries in South Africa, including IBM, Google, Microsoft, Intel, SAP, Dell, Amazon Web Services, Novell, Meta, and HP.

These firms view the country as a regional hub and a supply base for the region. In parallel, South Africa is home to vibrant startup communities in Cape Town and Johannesburg, with active ecosystems in fintech, healthtech, edtech, and agritech that are attracting increasing amounts of venture capital.

Distinguished delegates,

E-commerce has become one of the fastest-growing segments of the digital economy. Sales reached $4.1 billion (R71 billion) in 2023, up 29% from 2022, driven by local platforms such as Takealot, Superbalist, and OneDayOnly, as well as the entry of global players like Amazon, Alibaba, Shein, and Temu. Food delivery platforms such as Uber Eats and Mr D have further embedded digital consumer behaviour, particularly in urban areas.

Cloud computing is projected to grow at an annual rate of 25% in 2025, while the number of IoT connections is expected to rise to 43 million by 2025 this will be up from 17 million in 2020, enabling new efficiencies in manufacturing, agriculture, and logistics.

For its part, the South African Government has set four national priorities:

- Universal access to internet - extend high-speed broadband to all households and schools, leveraging submarine cables, national fibre, and last-mile solutions (5G, fixed wireless, satellite).

- Digital skills development - expand intermediate and advanced skills through national training programmes and talent visas to support innovation.

- Productive digital use - shift usage from social media to e-commerce, e-government, and digital finance, raising GDP impact.

- Supportive environment for investment and innovation - continue spectrum licensing, improve regulatory clarity for AI and cybersecurity, and streamline approvals for infrastructure projects.

South Africa's combination of having the most advanced banking systems on the continent, fintech hubs, ICT infrastructure, and data centres provides a springboard for scaling innovation across the AfCFTA.

It is uniquely positioned to enable the next generation of integrated, cloud-based platforms that connect banks, fintechs, regulators, and entrepreneurs across the continent through shared and secure digital infrastructure.

Africa's digital economy is projected to reach $712 billion by 2050, supported by over 1.1 billion mobile money accounts and a young, connected population. By leveraging its comparative advantages, South Africa is poised to serve as both a regional digital hub and a gateway for AfCFTA-driven digital trade and investment.

Delegates,

I am certain that you now want to know: what are the available opportunities in South Africa's Digital Economy and Tech Infrastructure?

- Data Centres and Cloud Services: South Africa offers significant opportunities in the expansion of hyperscale and edge facilities, with growing demand for renewable-powered operations and interconnect platforms.

- Metro Fibre and Last-Mile Broadband: Investors can participate in closing the rural and township connectivity gap through fibre networks, 5G fixed wireless solutions, and satellite technologies.

- 5G Rollout and Smart Infrastructure: The rollout of 5G enables new opportunities in industrial IoT applications across mining, manufacturing, and agriculture.

- Digital Trade and Government Services: There is strong potential to invest in e-customs, licensing, digital identity, and trade-tech platforms aligned with AfCFTA integration.

- Fintech and Digital Payments: The market continues to expand in mobile wallets, merchant acquiring, SME credit, and cross-border payment services.

- E-Commerce and Logistics Enablement: Growth in online retail is driving investment opportunities in warehousing, fulfilment centres, and last-mile logistics.

- Digital Skills and Talent Platforms: There is demand for scalable training and certification in areas such as cloud computing, cybersecurity, artificial intelligence, and data science.

- Renewable Energy for Digital Infrastructure: Linking renewable energy generation to data centres and telecom towers creates opportunities to stabilise operations while meeting ESG requirements.

Why should you invest in South Africa?

There are five enduring reasons for investors choose South Africa, despite the economic headwinds.

1. Infrastructure - With R900 billion committed to transport and energy infrastructure by 2027, our logistics ecosystem is among the most advanced in Africa.

2. Market Access - As the most industrialized economy in Africa, South Africa provides a natural entry point to the AfCFTA's 1.3 billion consumers and the SADC region's integrated markets.

3. Presence of Multinationals - Over 180 Fortune Global 500 companies operate in South Africa, and half of all multinationals headquartered in Africa are based in our country.

4. Human Capital - A young, tech-savvy population and world-class universities make South Africa an ideal location for digital talent and R&D.

5. Policy Certainty - Our Economic Reconstruction and Recovery Plan, coupled with investment-friendly reforms, ensures stability and predictability for investors.

The rule of law and our stable democratic system provides sufficient tailwinds to propel the growth and stability of our economy.
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Ladies and gentlemen,

As we invest in South Africa, we are also investing in Africa's shared prosperity. Through AfCFTA, we are driving regional industrialisation, digital trade, and green growth.

We envision an Africa that trades not only in minerals and commodities but in data, design, and digital value. South Africa's partnerships across energy, logistics, and technology are guided by this vision: to build a better Africa, and a better world.

Programme Director,

South Africa is not merely open for business: we are open and ready for sustainable partnerships. We invite investors to join us in transforming African markets through digital innovation, infrastructure connectivity, and sustainable industry.

As we stand at the intersection of the digital and green revolutions, let us together shape a future where South Africa is not just the gateway to Africa, but the engine of Africa's digital and industrial renaissance.

Thank you very much!