SA’s Internet economy to double

Wednesday, 04 April 2012 00:00 Written by Nicola Mawson
South Africa’s Internet economy is expected to leap from being worth R51 billion in 2010 to R103 billion in 2016, according to a new report from the Boston Consulting Group.

Currently, online shopping accounts for about 1.9% of SA’s economy and is anticipated to grow to 2.5% by 2016, states the research company’s report “The $4.2 Trillion Opportunity: The Internet Economy in the G-20”.

By 2016, the total size of the G-20 Internet economy will be $4.2 trillion, equivalent to 5.3% of gross domestic product (GDP), up from $2.3 trillion or 4.1% two years ago, says the Boston Consulting Group’s (BCG’s) report.

The company’s research says that if the Internet was a sector, it would be equal in size to utilities such as electricity, gas and water. Locally, about 8.5 million South Africans have online access out of a population of about 50 million, according to figures.

However, BCG notes that SA’s Internet economy is growing at a slower rate than other developing economies, 12.6% compared with an average of 17.8%. Developed markets are expected to grow at an average of 8.1% through to 2016.

“In 2016, SA will remain at the 17th position in the G-20, with the Internet’s contribution to GDP increasing to 2.5%.”