Heads in the cloud the new bottom line for SA growth

The digital infrastructure supporting modern global economies is increasingly crucial for South Africa's growth and job creation, according to the latest GDP data from Stats SA. Despite a slight economic contraction, the transport, storage and communication sector showed a positive growth rate, highlighting the resilience of digital and technology infrastructure.

The World Bank's World Development report underscores the rapid adoption of AI technologies, with middle-income economies, including South Africa, accounting for half of ChatGPT's global user traffic within six months of its launch.

For South Africa to capitalize on this shift, the focus must be on developing sophisticated capabilities in cloud computing, cybersecurity, data and AI. However, building these capabilities internally can be challenging due to scarce skilled labor. Instead, leveraging specialist skills, platforms, infrastructure, and expertise as a service presents an opportunity to grow jobs and enhance international competitiveness.

This approach allows companies to access the necessary resources without the burden of owning the entire technology stack.

South Africa has already made significant strides in this area. The Global Business Services (GBS) sector, which includes managed tech services, has expanded rapidly. The number of GBS workers grew from approximately 65,000 in 2019 to an estimated 150,000 in 2024, with market revenue doubling from US$1.04 billion to US$2.91 billion.

Notably, the sector has created over 26,346 new jobs in 2025, with the majority going to young people. This demonstrates that South Africa can export expertise and build on existing foundations to participate in the digital economy.

Managed services such as cloud operations, cybersecurity, data analytics, and AI-enabled business services create demand for a diverse range of skills. These roles provide pathways for young people into more specialized work, addressing unemployment and offering a route to higher-value technology careers. The government's role is crucial in creating a supportive environment for this growth, including policies that facilitate the export of digital services and the development of a skilled workforce.

One of South Africa's most promising opportunities lies in cybersecurity. The cybersecurity industry is expected to reach US$2.72 billion by 2030, with managed services being the fastest-growing segment. Despite the high demand for specialist skills, these remain scarce and costly. South Africa's favorable geographic location and currency position it well to offer competitively priced managed cybersecurity services.

This sector presents an attractive export opportunity, leveraging South Africa's established delivery model, international relationships, and talent pipeline. By becoming the skilled layer around global hyperscalers, South Africa can build a robust ecosystem that benefits from the growing demand for advanced digital expertise in international markets.