How digital empowerment of SMMEs will shape South Africa's economic future

With the rapid surge of AI-driven disruptions reshaping industries and societies alike, digital transformation is once again reclaiming centre stage in conferences, boardrooms, legislatures, and the corridors of power. 

Decision-makers are beginning to recognise that adapting to this new era is no longer a matter of choice but a necessity for survival and competitiveness. 

Across the spectrum, from government policy reforms to corporate strategies, the conversation has shifted from debating the need for digital transformation to determining how best to harness it to reshape productivity, governance, and daily life.

For South Africa, one of the most unequal societies in the world, this digital revolution presents great promise, as it has the potential to be the great equaliser that bridges divides in access, education, and opportunity, offering a pathway to greater inclusion and growth. 

Online learning platforms

We have already seen, in tangible and inspiring ways, how technology can change lives. Through telemedicine and virtual consultations, people in remote villages can now access specialist healthcare that was previously available only in private hospitals in major cities. 

Online learning platforms have opened up new worlds of knowledge, enabling children from low-income households to learn from some of the world’s best educators and institutions.

Yet, without deliberate and inclusive implementation, technology could just as easily deepen the very inequalities it seeks to dismantle. Without proper planning and sustained investment, digitisation can exclude rather than include.

The same rural communities that stand to gain the most from digital access are often the least connected. High data costs, the unaffordability of devices, and weak infrastructure continue to keep millions offline and on the margins of progress.

Globally, the digital divide remains staggering. A study by UNESCO, ITU, and the Broadband Commission found that 2.6 billion people are still offline. While 93% of people in high-income countries use the internet, only 27% in low-income countries do. This mirrors South Africa’s own internal divide, where urban areas are connected hubs of innovation and rural areas remain digitally isolated.

Broadband coverage

According to the State of the ICT Sector of South Africa Report 2025 by ICASA, 5G coverage in the country stands at 46.64%, and broadband now covers 82.06% of South Africa’s land area. This is a sign of real progress, yet one that also highlights how rural and underdeveloped areas remain underserved. 

The COVID-19 lockdowns highlighted the digital divides across the continent in stark relief. While well-resourced schools pivoted seamlessly to online teaching, thousands of learners in poorer communities were left behind, not due to a lack of talent or motivation, but rather due to a lack of connectivity and digital enablement. 

That moment should have prompted a rethink of the continent’s digital investment strategies. Instead, many countries on the African continent missed a crucial window to expand ICT infrastructure, make data more affordable, and equip citizens with the digital skills essential for the modern economy.

Role of SMMEs

As artificial intelligence, robotics, and automation reshape industries at an unprecedented pace, South Africa, like many developing nations, risks falling further behind. One critical area we cannot afford to neglect is SMME connectivity and digital enablement.

Failure to act decisively will do more than widen existing gaps in poverty and inequality; it will undermine our global competitiveness, where technological readiness increasingly dictates who thrives and who is left behind. Ensuring that SMMEs are digitally empowered is not just a matter of business; it is a national imperative for sustainable growth and inclusion.

For South Africa’s small, medium, and micro enterprises (SMMEs), digital transformation can mean the difference between survival and collapse. 

When harnessed effectively, technology allows SMMEs to expand market reach, improve customer service, enhance product offerings, strengthen brand reputation, and make informed, data-driven decisions.

The UNESCO Broadband Commission for Sustainable Development highlights the profound impact of connectivity on SMMEs and the broader economy. It states that connectivity can drive revenue growth by opening access to new customers and providing deeper market insights, while also reducing costs through more efficient transactions. 

Digital platforms amplify these advantages by linking buyers and sellers, facilitating payments, and streamlining the delivery of goods and services.

Digital transformation

Given the critical role that SMMEs play in the economy, both in terms of revenue and employment, their digital empowerment has far-reaching implications. 

Stronger economic growth, expanded trade, higher-value jobs, and greater resilience are just some of the benefits of a digitally connected and digitally enabled SMME sector. 

Despite the potential, many SMMEs still struggle with limited digital literacy and inadequate connectivity, preventing them from fully leveraging these technologies. 

This is where collaboration between the government and the private sector becomes essential. The private sector must invest in skills development, enterprise supplier development and digital training, while the government must prioritise reducing data costs and expanding broadband access, particularly in rural areas.

Together, these coordinated efforts can ensure that technology serves as an enabler of progress, empowering SMMEs to compete locally and globally, unlock new markets, and drive inclusive economic growth.

Tools such as Customer Relationship Management (CRM) systems help small businesses organise customer information, track sales, automate routine tasks, and monitor performance from a single platform. 

By streamlining operations and enhancing customer engagement, these systems allow SMMEs to operate efficiently and compete in markets that were once out of reach.

When combined with other digital tools, CRMs provide small enterprises with the infrastructure to grow, innovate, and scale. They save time, reduce administrative burdens, and free business owners to focus on creativity and expansion. Most importantly, they ensure that digital transformation benefits a broad base of businesses, not just large corporations.

Yet many digital tools remain out of reach for SMMEs, with high costs and licensing fees preventing smaller enterprises from fully participating in the digital economy. 

I had the opportunity to take part in the recent KZN Digital Transformation Summit, where entrepreneurs, policymakers, and technologists came together to explore how local innovation can address these gaps. 

As part of these discussions, I presented the Asante PowerCRM, a locally developed solution platform designed to provide affordable and practical digital support for small and medium-sized enterprises, unlocking growth. Its development shows how sophisticated tools can be adapted to the realities and constraints of SMMEs, turning digital transformation from an abstract concept into a tangible and scalable advantage across emerging markets.

That the platform was recognised as the second prize winner in the Digital Startup competition underscored the demand for such tools and the importance of broadening access to them.

What became clear during the Summit was a growing recognition of the potential technology holds to empower SMMEs, helping them operate more efficiently, extend their reach, and compete in markets that were previously beyond their grasp. 

The conversations reaffirmed that digital transformation, when made accessible, is about opening opportunities, building resilience, and creating a more inclusive economy.

Access to capital

If done right, South Africa’s digital future can include everyone. True inclusion requires that innovation be not only sophisticated but also accessible to all.

Access to capital and funding is crucial for transforming ideas into scalable solutions. 

Government, the private sector, and development finance institutions must provide the resources that enable young entrepreneurs to create the platforms, tools, and services that will shape the nation’s digital economy.

A transformative approach must be holistic, encompassing the building of infrastructure, supporting innovation, lowering access costs, expanding connectivity, and equipping people with the skills to utilise these technologies effectively. 

Without such coordinated action, the promise of digital transformation will remain out of reach for millions. Digital transformation is an urgent necessity. The question now is whether South Africa will commit to making it truly inclusive, giving every citizen and every small business the tools and opportunities to participate fully in the digital age.

(Ndwalane is a Forbes Africa 30 Under 30 entrepreneur and digital transformation strategist dedicated to advancing inclusive innovation in Africa. He leads Asante Solutions, a South African Marketing Technology (MarTech) company driving SME digital enablement through its flagship platform. His views don't necessarily represent those of the Sunday Tribune or IOL)

SUNDAY TRIBUNE