While South Africa has made significant progress in connecting citizens to the internet, Communications and Digital Technologies Minister Solly Malatsi says more must be done to unlock the full potential of connectivity.
According to the recently released Digital Infrastructure Investment Study commissioned by the Development Bank of South Africa, the true connectivity access gap is now only 2.2% of all South African households.
“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,” the Minister said on Tuesday in Parliament, delivering the department's Budget Vote.
Malatsi stressed that if South Africa is to fully leverage the benefits of connectivity, access must be meaningful and not merely universal.
“To this end, low-earth orbit (LEO) satellite services also form part of South Africa’s digital future. 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.
“Our responsibility is to ensure that new technologies expand inclusion rather than deepen inequality,” the Minister said.
The Minister highlighted that the digital economy is not only a standalone contributor to economic growth but also a key enabler of productivity across all sectors of the economy.
He noted that government’s decision to remove the ad valorem excise duty on entry-level smartphones had already yielded positive results.
“Last year, government removed the ad valorem excise duty on entry-level smartphones. The Department of Communications and Digital Technologies partnered with the GSMA to measure the impact of this tax break: in the nine months before the tax removal, month-on-month entry-level smartphone sales declined by 7.9% per month.
“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.
He added that the department will use the study’s findings to engage the National Treasury on additional fiscal measures to improve access to digital devices.
According to the Minister, the department’s expenditure allocation for the 2026/2027 financial year is R2.549 billion.
Of that, R1.749 billion is transferred to portfolio entities.
The Independent Communications Authority of South Africa (ICASA) received R505million, the Film and Publications Board received R112 million, and the South African Post Office has been allocated R595 million.
The South African Broadcasting Corporation (SABC) received R234 million.
“The SABC has, for the second consecutive year, achieved an unqualified audit opinion, a remarkable improvement after years of governance instability.
“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,” the Minister said.
Malatsi also revealed that eight cyber labs were launched during the 2025/26 financial year in partnership with departmental entities and private sector stakeholders to support digital skills development among young people.
A further 10 cyber labs are expected to be established during the current financial year. -SAnews.gov.za
