Dr Stella Bvuma is Director, School of Consumer Intelligence and Information Systems (SCiiS), College of Business and Economics, University of Johannesburg.
She recently published an opinion article that first appeared in the City Press on 10 March 2024.
Thirty years into democracy, South Africa finds itself at a technological crossroads, caught between the aspirational promise of digital democracy and the harsh realities of life for her citizens. This is particularly the case for those in rural regions running small, medium, and micro-sized enterprises (SMMEs). Despite the significance of their 34% contribution to SA’s Gross Domestic Product (GDP), efforts to enable their leverage of digital technology and grow their contribution to the economy are often underwhelming. Bringing SMMEs fully into the digital economy is critical for the future of South Africa and to realise those aspirational promises.
I recently visited my hometown in the Mopani District, in the middle of Limpopo Province. I have noticed that a quiet change is taking place that is shaping the future of small businesses and bringing back the spirit of entrepreneurship. The stories of many determined businesspeople are more than just tales of survival; they show how digital tools can change lives in rural South Africa.
In the middle of the Mopani bushveld, for instance, a young woman with a big idea turned her grandmother’s traditional hobby of beading into a huge online hit. She used a website and social media to showcase the beautiful colours and complex designs of her ancestry. Through Instagram stories and Facebook posts, her tapestry of beading attracted fans from outside of Limpopo, reaching a far-off market of people from around the world who want to buy genuine African crafts.
I have noticed how other artists in many parts of South Africa’s rural areas are adopting these digital platforms and tools to enable their businesses. Recently, I was privileged to have coffee with Makgato*, owner of a small farm, who in the past relied on middlemen to get to market. Capitalising on the growth of mobile technology, Makgato can now see market prices in real time, talk to prospective buyers directly through WhatsApp groups, and use online shopping to sell his goods. By using digital payment systems like M-Pesa and SnapScan that make transfers easier, Makgato is able to avoid the challenges associated with traditional banking services. Makgato stayed in business, thanks to the extra money he made from direct sales and helped reduce unemployment in Mopani as he hired more locals.
As these changes gained momentum in Mopani, word quickly spread to nearby towns, success breeding success. There are many examples. In Tzaneen, many small businesses, from bed and breakfasts to craft breweries, have started to use the internet to develop their own markets. Mpho*, the owner of a small lodge, created a video tour of her rooms to invite guests to enjoy the real Limpopo experience. Good reviews on TripAdvisor and an easy-to-use online booking system brought in many more visitors, with further benefit for other local businesses.
This digital revolution has also given more people access to education. For the last four years, I have been training SMMEs on the use of technology to enable their businesses. This is my calling and passion: to use my knowledge, expertise, and the ICT adoption framework for township and rural SMMEs that I developed for my PhD in Information Technology to help people become active participants in the digital economy, such as those in my home village.
Today, I find it amazing that many SMMEs who want to enhance their skills are taking my classes online, improving their business management, digital marketing, and money management. Previously this was not possible. The business community becomes stronger as they share all they have learned.
SMMEs can help the South African economy by creating jobs, attracting tourists, and selling goods. My village of Sekgopo in the Letaba Municipality, Mopani District, which used to be technologically illiterate has become so technology wise that it is now a model of culture and economic strength. The drive of small businesses across rural South Africa to be successful is a powerful story of hope, of progress, and of economic growth.
The ideals of digital democracy envision an empowered population with equal access to information and communication technology, having the opportunity to actively engage in politics, society, and the economy through entrepreneurship and SMMEs. However, this vision often confronts head-on the physical and sociopolitical difficulties that continue to impede South Africa’s transformation and development, particularly in rural areas.
The “truth” is that digital democracy in South Africa is marked equally by progress and setbacks.
On one hand, technology has become a powerful tool for involvement and empowerment. Social media platforms and digital forums have enabled extensive information exchange, allowing rural businesses to sell their goods, interact with clients, and access previously unavailable services.
The South African government has undertaken several initiatives to close the digital divide, to ensure more people have access to technology and learn how to use it effectively to benefit from and participate in the modern digital, connected society. Projects such as SA Connect, under the country’s national broadband policy, seek to improve internet access and digital skills training available for all citizens.
However, the optimistic nature of these developments must be tempered by the dismal reality that many rural people and SMMEs endure. Limited digital infrastructure in rural regions is a major impediment, with intermittent electrical supply and poor internet access limiting the usefulness of digital platforms. Despite the widespread use of mobile technology, the cost of data remains prohibitively expensive for many prospective entrepreneurs, and service provider preference for urban-centric policies reinforces economic gaps between metropolitan centers and rural villages.
Digital literacy is another mountain to climb. While younger generations may find the journey easier, senior company owners are sometimes stranded at the foot of the mountain, unable to fully exploit digital technologies. Although the government has committed to digital transformation and incorporated it in national planning frameworks, policy implementation is slow for rural SMMEs.
Reflecting on these problems does not invalidate the promise of digital democracy to improve the economic and social fabric of rural South Africa. However, it does highlight the need for a coordinated effort to eliminate the structural hurdles that hinder digital democracy from realising its full potential. This includes investment in digital infrastructure, subsidized data for small and medium-sized enterprises, targeted training initiatives to narrow the digital literacy gap, and regulations that consider and address rural businesses’ particular demands.
As South Africa celebrates 30 years of democracy, the road ahead should be distinguished by inclusive policies that address all people’s digital demands and challenges, especially those in places where the gap is most significant. Digital democracy should not be a reality for a select few, but rather a right enjoyed by all. Rural SMMEs should be championed as critical contributors to the country’s economic rejuvenation and technical advancement, not neglected and disregarded.
The “truth” of digital democracy in South Africa is to realize its enormous promise for the broader population and SMMEs requires a purposeful and inclusive strategy that guarantees no one falls behind in the digital dash. Only via such an approach can digital democracy genuinely serve as a foundation for economic emancipation and political involvement for all South Africans, regardless of postal code.
*The views expressed in this article are that of the author/s and do not necessarily reflect that of the University of Johannesburg.
