Naspers SA CEO: Why digital transformation is key to driving inclusive growth in Africa

The year 2020 was unlike any other in recent memory, with the COVID-19 pandemic wreaking havoc on economies around the world. However, amidst the chaos, the tech sector has been a beacon of hope, experiencing unprecedented growth and driving digital transformation across industries. Phuthi Mahanyele-Dabengwa, the CEO of Naspers South Africa, highlighted the significant impact of the pandemic on the digital economy during a recent CNBC Africa interview. While the macroeconomic environment has been severely affected by the pandemic, the tech space has witnessed exponential growth due to changes in consumer behavior and an increased reliance on digital solutions. This transformation is not limited to South Africa alone but has been a global phenomenon, with e-commerce, fintech, and educational technology platforms experiencing a surge in demand. The shift towards e-commerce has been particularly remarkable, with growth projections surpassing earlier estimates by a significant margin. As Mahanyele-Dabengwa pointed out, this digital revolution presents enormous opportunities for South Africa's economy, especially given the relatively low cost of doing business and the rapid digitization of society. The CEO emphasized the critical role of digital transformation in driving inclusive economic growth in the country and highlighted the importance of investing in technology to stimulate economic recovery. However, challenges remain, particularly in terms of internet penetration, which stood at 63 percent in South Africa in 2019. As the country looks to rebound from the pandemic-induced downturn, Mahanyele-Dabengwa underscored the need for increased investment in digital infrastructure to harness the full potential of the digital economy. Despite the uncertainties brought about by the pandemic, Mahanyele-Dabengwa remained optimistic about the future, citing the resilience of the tech sector and its potential to drive innovation and growth. The interview also touched upon the recent performance of NASPS's share price and the potential listing of one of its subsidiaries, Kao Show, on the market. While Mahanyele-Dabengwa refrained from commenting on specific details, she expressed confidence in the growth prospects of NASPS's investments and reiterated the company's commitment to supporting South Africa's economic recovery. The conversation then shifted to the global tech tax debate, with Mahanyele-Dabengwa acknowledging the importance of monitoring developments in global markets. In light of the Biden administration's support for a global tech tax, she emphasized the need for a conducive regulatory environment to support tech companies operating in various markets. The interview concluded with a reflection on South Africa's economic performance and the government's response to the pandemic. Mahanyele-Dabengwa commended the government's leadership in managing the crisis and highlighted the importance of collaboration between the public and private sectors to foster economic recovery. As South Africa looks to rebuild trust and attract investments into its tech sector, Mahanyele-Dabengwa emphasized the need for greater engagement between key stakeholders and the development of enabling legislation to facilitate investment. Overall, the interview shed light on the transformative power of digital technology in driving inclusive economic growth in Africa and the importance of partnership and collaboration in navigating the post-pandemic landscape.