Business Report Economy

South Africa cannot build a gig economy on mobile data alone

Albert Oosthuysen|Published

Today, more people than ever can design content, invoice clients, manage workflows and sell services using affordable digital platforms including Xero and Canva.

Image: Fie.

The conversation around South Africa’s gig economy often focuses on access to tools.

Today, more people than ever can design content, invoice clients, manage workflows and sell services using affordable digital platforms including Xero and Canva.

On top of this, the latest AI tools allow you to build websites and apps in a matter of days – theoretically democratising access to the economy.

While that progress matters it also obscures a deeper constraint that continues to limit meaningful participation in the digital economy: You cannot build a modern digital business on mobile data.

The common narrative is that South Africa has roughly 80% internet penetration, but the vast majority of that access is mobile-driven.

Fibre penetration, by contrast, sits closer to 26% when measured across homes and small businesses with fixed-line broadband.

This gap is one of the reasons so many micro and small enterprises remain confined to low-value participation in the economy. Entrepreneurs can design, brand and communicate on their phones, but scaling consistently in a digital economy requires stable, affordable and high-capacity connectivity.

The implications for the gig economy are significant. Freelancers, creators, online traders and service providers depend on reliable connectivity to upload content, run cloud-based software, manage digital storefronts and maintain real-time engagement with clients.

These activities are difficult to sustain on prepaid mobile data, where costs are high and performance is inconsistent. Until that gap is addressed, many participants will remain active but unable to grow beyond subsistence-level operations.

South Africa cannot rely on market demand alone to close the fibre divide. Countries that take digital infrastructure seriously do not wait for adoption to catch up before investing.

They create predictable policy environments, streamline approval processes, support rural deployment and implement tax frameworks that make long-term infrastructure investment viable. Markets that have accelerated fibre rollout have done so by treating connectivity as foundational infrastructure rather than a commercial add-on.

International examples underline the point. Government-backed voucher schemes in the United Kingdom accelerated fibre rollout to the extent that full fibre now passes more than 60% of premises, up sharply from just a few years ago.

South Korea has taken an interventionist approach for over a decade, combining incentives with financing mechanisms to support network expansion.

Singapore’s co-investment model lowered infrastructure costs for operators and enabled nationwide coverage exceeding 95%. Even Kenya has expanded broadband reach through shared infrastructure corridors that reduced duplication and accelerated deployment.

South Africa’s policy environment shows pockets of progress, but remains fragmented. Many SMEs still operate in areas where fibre providers cannot recover capital costs, leaving mobile data as the default connection. Research by the Bureau of Economic Research highlights how this dynamic reinforces inequality, noting that heavy internet use for education, remote work or online business quickly becomes unaffordable for lower-income households when reliant on volume-based mobile data pricing.

This goes to the heart of economic inclusion in a digital economy and is one of the points we raised when we recently hosted the Minister of Communications and Digital Technologies. South Africa has no shortage of entrepreneurial energy.

Side hustles, freelancers, traders and micro-manufacturers are already using low-cost tools to build brands, manage operations and reach customers.

The barrier is not creativity or motivation but rather the absence of stable infrastructure that allows these activities to operate at the pace the digital economy demands.

You cannot expect an SME to compete with a limited mobile data bundle. You cannot build a digital export business on prepaid connectivity.

You cannot meaningfully expand the tax base through small business development if infrastructure constraints continue pushing entrepreneurs into offline or semi-digital models.

International precedent suggests South Africa needs a coordinated strategy to fast-track fibre rollout.

That includes standardised wayleave processes across municipalities, targeted incentives for network operators in underserved areas, co-investment in high-cost corridors and regulatory reforms that reduce administrative burdens on infrastructure providers.

These measures are not theoretical; they reflect approaches already proven in markets prioritising digital inclusion.

Fortunately the Minister appears to have a good grasp on the importance of digital infrastructure and we were encouraged by our engagements. It is clear that both public and private sector participants can see the roadblocks and are keen to invest to allow more meaningful access to our economy.

There is already momentum.

Private operators are investing and demand continues to rise.

What is missing is the acceleration needed to close the gap between mobile access and meaningful digital participation. Fibre is the difference between running a hustle and building a business. It is the difference between surviving and scaling in a modern economy.

If South Africa wants to strengthen its gig economy, support SMEs and attract investment, digital infrastructure cannot remain a secondary priority.

The tools are here. The entrepreneurs are here. What is needed now is infrastructure that matches their ambition.

Albert Oosthuysen, CEO of Net Nine Nine. 

Albert Oosthuysen, CEO of Net Nine Nine. 

Image: Supplied.

Follow Business Report on Facebook, X and on LinkedIn for the latest Business and tech news.

BUSINESS REPORT