SA’s Internet Access Gap Falls to Just 2.2% as Govt Pushes Digital Inclusion and Affordable Connectivity

South Africa has significantly narrowed its digital divide, with the country’s true internet connectivity access gap now standing at only 2.2% of households, according to a newly released Digital Infrastructure Investment Study commissioned by the Development Bank of Southern Africa (DBSA).

But Communications and Digital Technologies Minister Solly Malatsi says the next phase of South Africa’s digital transformation must focus not merely on expanding access, but on ensuring that connectivity delivers real economic opportunity, inclusion and participation in the digital economy.

Delivering the Department of Communications and Digital Technologies’ Budget Vote in Parliament on Tuesday, Malatsi said South Africa had made notable progress in expanding digital infrastructure, but warned that infrastructure alone would not solve deeper inequalities in access and usage.

“South Africa has made commendable progress in the delivery of digital infrastructure. But there is a critical question we must ask ourselves: is access itself enough? The answer to that, fellow South Africans, is clear: no, it is not enough,” Malatsi said.

Connectivity Gap Narrows Dramatically

The finding that only 2.2% of South African households remain without connectivity access marks a major milestone in the country’s digital development efforts.

The improvement reflects years of investment in:

• Broadband infrastructure

• Mobile network expansion

• Fibre connectivity

• Public internet access initiatives

• Telecommunications reforms

• Spectrum allocation programmes

Analysts say the narrowing connectivity gap positions South Africa among the more digitally connected countries on the African continent, although significant disparities remain between urban and rural areas, wealthy and low-income communities, and between access and actual digital participation.

Experts increasingly argue that “meaningful connectivity” requires more than network availability and must include:

• Affordable devices

• Affordable data

• Digital literacy

• Reliable infrastructure

• Relevant online services

• Cybersecurity awareness

• Access to digital economic opportunities

Government Backs Satellite Internet Expansion

One of the most significant developments highlighted by Malatsi was government’s support for the expansion of low-earth orbit (LEO) satellite services as part of South Africa’s future digital ecosystem.

LEO satellite technology, increasingly used globally to provide high-speed internet to remote and underserved regions, is expected to play a major role in expanding connectivity in rural South Africa where traditional fibre and mobile infrastructure remain costly or difficult to deploy.

Malatsi signalled that government is moving toward creating a regulatory environment that allows international satellite operators to provide services in South Africa while ensuring compliance with national regulations and transformation objectives.

“To this end, low-earth orbit satellite services also form part of South Africa’s digital future,” the Minister said.

“Rather than wait a decade to develop domestic LEO capacity, we must create conditions for international operators to serve our people now, in a manner that supports national interests and regulatory compliance.”

The Minister stressed that emerging technologies must be used to close inequality gaps rather than deepen them.

“Our responsibility is to ensure that new technologies expand inclusion rather than deepen inequality,” he said.

Smartphone Tax Relief Boosts Device Affordability

Malatsi revealed that government’s decision to remove the ad valorem excise duty on entry-level smartphones has already produced measurable improvements in device affordability and smartphone adoption.

The Department of Communications and Digital Technologies partnered with the GSMA — the global mobile industry association — to assess the impact of the tax break.

According to the findings:

• Before the tax removal, sales of entry-level smartphones were declining by 7.9% month-on-month

• Between April and December 2025, the decline reversed

• Entry-level smartphone sales grew by 3.7% month-on-month

The Minister said the data indicates that more South Africans are now able to transition from basic feature phones to internet-enabled smartphones.

“Between April and December of 2025, this decline was reversed, and month-on-month sales in this segment grew by 3.7%, with a clear indication that people can now afford to substitute their feature phones for smartphones,” Malatsi said.

Industry experts say smartphone affordability remains one of the most important barriers to digital participation in developing economies.

Affordable smartphones are increasingly essential for:

• Online education

• Digital banking

• E-commerce

• Government services

• Remote work

• Small business participation

• Job applications

• Social communication

Treasury Engagement Planned on Further Device Support

Malatsi said the department intends to use the study’s findings to engage National Treasury on additional fiscal interventions aimed at improving access to digital devices.

Possible measures could include:

• Further tax reductions

• Import duty adjustments

• Subsidised digital device programmes

• Incentives for local manufacturing

• Expanded digital inclusion schemes

Digital economy analysts believe lowering the cost of smart devices could significantly accelerate South Africa’s participation in the global digital economy and help reduce socio-economic inequality.

R2.549 Billion Budget Allocated to Digital Transformation

The Department of Communications and Digital Technologies has been allocated R2.549 billion for the 2026/27 financial year.

Of this amount, approximately R1.749 billion will be transferred to the department’s portfolio entities.

Key Allocations Include:

The allocations are intended to support regulatory oversight, public broadcasting, postal services, digital governance and communications infrastructure development.

SABC Shows Signs of Financial Stabilisation

Malatsi also highlighted continued governance improvements at the South African Broadcasting Corporation (SABC), which has now achieved an unqualified audit opinion for the second consecutive year.

The development marks a significant turnaround for the public broadcaster after years of financial instability, governance crises and operational challenges.

“The SABC has, for the second consecutive year, achieved an unqualified audit opinion, a remarkable improvement after years of governance instability,” the Minister said.

He added that government has completed a study into a sustainable long-term funding model for the broadcaster and is consulting with National Treasury on future financing arrangements.

“The funding model study has been completed, and we are currently consulting with National Treasury on the most suitable model to ensure that the SABC is empowered to balance its commercial operations and public broadcasting mandate,” Malatsi said.

Cyber Labs Expansion Targets Youth Digital Skills

As part of efforts to build digital skills and prepare young South Africans for the modern economy, Malatsi announced the launch of eight cyber labs during the 2025/26 financial year.

The labs were established through partnerships between government entities and private sector stakeholders.

The facilities are aimed at improving digital literacy and cybersecurity skills among young people.

A further 10 cyber labs are expected to be rolled out during the current financial year.

The initiative forms part of government’s broader strategy to address:

• Youth unemployment

• Digital exclusion

• Skills shortages

• Cybersecurity capacity gaps

• Technology sector participation

Digital Economy Increasingly Central to Economic Growth

Malatsi stressed that the digital economy is no longer a standalone sector, but a foundational enabler of growth across virtually every industry.

The Minister said digital infrastructure and connectivity now underpin productivity in sectors such as:

• Education

• Healthcare

• Manufacturing

• Agriculture

• Financial services

• Retail

• Mining

• Government administration

Economists say South Africa’s ability to fully participate in the Fourth Industrial Revolution will depend heavily on whether digital inclusion efforts can reach poorer households, rural communities and small businesses.

As government accelerates digital transformation efforts, the focus is increasingly shifting from basic connectivity toward ensuring all South Africans can actively participate in the opportunities created by the digital economy.