“Reliable and affordable connectivity is a basic requirement for full economic participation,” said Communications and Digital Technologies Minister Solly Malatsi on August 28.

“Connectivity is not a luxury; it is about dignity, entrenching learning, improving efficiency in our work, as well as enhancing safety of digital channels,” he said during financial services firm Nedbank Corporate and Investment Banking's (CIB's) ICT 2025 conference, held in Sandton.

“Digital transformation has been an important but untapped opportunity for far too long, and we remain frustrated that so much of the potential of the country remains unfulfilled. A digital economy in South Africa can drive productivity and growth at scale.”

To unlock this transformation, households need affordable devices and reliable, affordable broadband connectivity, while small businesses need digital tools to cut costs and expand their markets, he told finance and information and communications technology (ICT) executives.

Only through collaboration between the public and private sectors will advancement of the country's digital economy be achieved. This cooperation will lead to a win-win situation, Malatsi said.

Economic growth is in the interest of government, but the upliftment of citizens will also improve the investment environment, expand the customer base of businesses, and increase the value of assets in the private sector.

This shared prosperity is a virtuous cycle, and ICT is one of the elementary drivers of an economic growth trajectory that will drive inclusion and sustainable transformation, he noted.

Government's role is to create an enabling environment in which digital technologies can be leveraged.

The Department of Communications and Digital Technologies is focused on expanding connectivity and reducing barriers to device ownership as a basic instrument to drive digital activity. It was making steady progress in lobbying for lower taxes for low-end smart devices to improve affordability, but this was a long process, he highlighted.

“Government must innovate and seek alternative ways to serve people. The Department is investigating further methods to address barriers to accessing technology. As a first step, a comprehensive review of legislation and regulations is in the pipeline,” Malatsi said.

The aim of the review is to modernise the regulatory approach to the rapidly developing technology sectors and increase regulatory certainty to improve the investment environment, he said.

The government's Digital Transformation Roadmap is part of a renewed commitment to harness the potential of technology to serve citizens better, but also to improve the experience of government services in the digital space.

Functioning digital identities will help to make it easier to do business and interact with government services. The change in how services are delivered must be matched by the expansion of digital channels to access these services, he said.

“This requires a digital infrastructure backbone to make these solutions work sustainably. We are committed to expanding connectivity through a programme of regulatory reforms to reduce or eliminate barriers; in so doing, the ICT space becomes smoother to operate in and protected.

“If we get this right, we will stimulate economic activity and improve the investment environment in South Africa. We carry the weight of the country on our collective shoulders to realise these ambitions,” he said.

Meanwhile, Nedbank CIB group managing executive Anél Bosman said digital infrastructure is no longer a support function but has become sovereign infrastructure that serves as the invisible scaffolding that keeps the economy going.

Digital infrastructure touches on everything in daily life, including mobile payments, cloud-hosted healthcare information, AI-enabled agriculture and connected schools. ICT is not just enabling technologies, but enables jobs, learning, economic inclusion and dignity.

“Digital infrastructure underpins economic competitiveness, social inclusion and institutional resilience. The question is whether we can finance it at the scale, speed and sophistication that the country needs?” she said.

“Our view is that digital progress is a shared project, that cannot be funded solely by government, nor left entirely to the private sector. Digital infrastructure demands partnerships, blended finance, and bankable and bold projects.

“The purpose of the conference today is to generate momentum. Blended finance can unlock and accelerate viable infrastructure deals that make a difference in the country and the region,” she said.

Nedbank CIB is ready to co-create solutions, structure risk intelligence and align capital and policy, as well as ensure that environmental, social and governance metrics are embedded in each layer.

“Our digital ambitions must not only be a vision, but must become a viable, visible and valuable component of the economy,” Bosman said.