SA's e-commerce sector could unlock huge opportunities in township economy - new report

PL

Paula Luckhoff

11 November 2025 | 18:00

Ecommerce Forum SA's 2025 report suggests the country is at a pivotal moment to make the changes necessary to unleash its e-commerce potential.

SA's e-commerce sector could unlock huge opportunities in township economy - new report

South Africa’s e-commerce is at a pivotal stage and we need to seize the moment to unlock the country's promise in this area.

That's the word from the industry body Ecommerce Forum SA (EFSA), with the release of its Ecommerce Report 2025.

The study was commissioned by EFSA and prepared by thinktank, Mapungubwe Institute for Strategic Reflection (MISTRA).

Researchers say it 'charts a practical path from today’s expanding phase to a more inclusive, globally competitive digital economy'.

This critical inflection point for the sector demands collaboration among all stakeholders to foster enterprise growth by easing business regulations in SA and ensuring consumer protection, says Dr Alastair Tempest,CEO of EFSA.

The report addresses the 'Big Five' challenges:

  • Regulatory fragmentation
  • Pressures of de-industrialisation
  • Digital exclusion of township and rural MSMEs
  • An uneven playing field from foreign platforms
  • Data sovereignty/platform power

The report also spotlights the untapped opportunities in the township economy, now valued at around R900 million.

While Micro, Small and Medium Enterprises (MSMEs) contribute about 40% of GDP, many township and rural enterprises remain informal and digitally excluded. 

Investment in information and communications technology (ICT) infrastructure and logistics is essential to integrate these businesses into the digital economy.

Stephen Grootes gets this comment from Machete Rakabe, senior researcher for Political Economy at MISTRA.

"What we're suggesting is that, given the level of maturity of the e-commerce system that SA has managed to build - ahead of countries like the Brazils and Indias of this world which are bigger economies, we think we're  losing on the dividend that comes with that ecosystem we've already built."

Rakabe also highlights the need to tap into the opportunities the township economy holds, and to ensure that some of the e-commerce spend South Africans are taking outside of the country are brought back.

"In that way way we'll be able to grow the current 10% e-commerce retail spend to maybe about 20%, so that it's more on par with the rest of the world." 

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