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Thursday, November 20, 2025

How SA’s Ecommerce boom could unlock opportunity for 1.1 million small businesses

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South Africa is crossing a digital Rubicon. In just five years, our share of ecommerce rocketed from less than 1% of retail sales to almost 10%, growth ten times faster than the wider economy. 

This surge signals that online trade has shifted from peripheral experiment to mainstream engine.

Yet the revolution remains perilously uneven.

Too many township shopkeepers, rural artisans and micro-entrepreneurs still watch the boom from the sidelines, constrained by patchy connectivity, high data costs and a rule-book few can navigate. 

If we fail to act now, history will record this moment as another squandered opportunity in a nation that can ill afford one.

The stakes are immense. Research shows that 1.1 million township and rural MSMEs are not yet online.

That is 1.1 million potential employers, taxpayers and exporters waiting for a digital doorway that remains shut.

Meanwhile, other African markets are moving quickly to claim their slice of a continental ecommerce pie projected to exceed R1.3 trillion in export value. 

Without decisive intervention, South Africa could watch neighbouring countries become gateways to Africa’s digital consumer base, just as inadequate rail and port infrastructure once saw us miss the height of the global commodity boom.

But digital acceleration can rewrite that script. Social commerce has already empowered fashion designers, farm-to-table food producers and craftspeople to reach niche audiences through TikTok, Facebook and WhatsApp storefronts.

Established emerchants leverage platforms such as Takealot, Bash and Amazon alongside their own sites, creating a dynamic, multichannel ecosystem that rewards innovation. Technology is not what holds us back; inclusivity is.

Bridging the divide is both a moral imperative and an economic multiplier.

Five structural fissures threaten to stall momentum if left untreated: regulatory fragmentation, the affordability gap, exclusion of township and rural MSMEs, de-industrialisation risk from unchecked foreign-platform dominance, and limited data sovereignty.

Solving them demands a whole-of-society commitment. The path forward can be summed up by four letters—C-A-R-T.

Connect: Every South African deserves affordable, reliable broadband. Lower data prices and last-mile infrastructure are the oxygen of digital participation. When access costs drop, first-time shoppers become lifelong customers and sidelined entrepreneurs enter formal value chains.

Accelerate: Logistics corridors, township fulfilment hubs and smart last-mile solutions cut delivery times and costs by up to 45 percent.

Faster turnaround unlocks scale for small sellers and creates new jobs in warehousing, fleet management and customer service.

Regulate: A single ecommerce regulatory unit housed in the Department of Trade, Industry and Competition, paired with a national e-trustmark, would replace today’s patchwork oversight with clear, predictable rules.

Robust enforcement of POPIA, the Consumer Protection Act and the Cybercrimes Act protects consumers’ data and wallets, turning trust into the currency of growth.

Trade: The African Continental Free Trade Area offers access to 1.3 billion potential customers. A National Ecommerce Maturity Dashboard, shared customs APIs and harmonised tax thresholds can reduce cross-border clearance from days to hours, giving South African goods frictionless passage across Africa.

These four pillars are not theoretical. They are drawn from “Seizing the Moment: Unlocking South Africa’s Ecommerce Promise,” an independent, evidence-based study commissioned by the Ecommerce Forum South Africa and authored by the Mapungubwe Institute for Strategic Reflection.

The report quantifies the upside, but it also issues a warning: hesitate now, and the cost of inaction will appear in lost jobs, diminished tax revenue and widened inequality.

So what must each stakeholder do?

  • Government should fast-track spectrum allocation, finalise the national ecommerce strategy and legislate the e-trustmark within the current parliamentary term.
  • Business must open APIs, share logistics capacity and channel investment into township hubs, preferring enablement over dominance.
  • Labour and training authorities need to align curricula with emerging digital roles, turning riders into fleet managers and coders into platform builders.
  • Civil society and academia must use the Ecommerce Maturity Dashboard to track progress, spotlight gaps and keep every participant honest.

History will judge us less by the reports we launch than by the livelihoods we uplift. Imagine Lerato, a township designer whose label goes viral across SADC markets, shipping overnight via a single-window customs portal, mentoring interns with her digital dividend and closing a multimillion-rand investment round, all in a single day.

Her story could be commonplace by 2030, if we seize the moment.

South Africa’s ecommerce boom is not inevitable; it is conditional.

It demands that we Connect, Accelerate, Regulate and Trade: together. Let us commit, in boardrooms, ministries and community halls alike, to building a digital marketplace that works for every South African.

The window is open. The time is now.

Dr Alastair Tempest, Chief Executive Officer, Ecommerce Forum South Africa.

Dr Alastair Tempest, Chief Executive Officer, Ecommerce Forum South Africa.

BUSINESS REPORT

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