Digital Skills Will Drive South Africa’s Next Generation Of Entrepreneurial Growth

South Africa’s deepening unemployment crisis continues to place immense pressure on communities, particularly young people entering an increasingly competitive job market. As traditional employment opportunities decline, entrepreneurship is emerging as a critical pathway to economic participation and long-term sustainability.

However, success in today’s global digital economy demands more than business ambition alone. Digital skills such as coding, data analytics, and artificial intelligence literacy are becoming essential tools for innovation, competitiveness, and growth. By expanding access to digital education and entrepreneurial training, South Africa has an opportunity to empower a new generation of entrepreneurs, drive economic inclusion, and unlock sustainable development both locally and across the continent.

“Through the development of key digital skills, entrepreneurs can make a significant impact on South Africa’s economic growth,” says Raeesa Kader, Academic Programme Leader at the MANCOSA School of Accounting, Finance and Tax.

Essential Skills

Entrepreneurs today operate in an environment driven by digital platforms, data, automation and artificial intelligence. Digital skills are no longer optional for these entrepreneurs; they are foundational to business survival and competitiveness in the modern economy. We can go so far as to say that digital skills have become the new currency of entrepreneurship because they directly determine whether a business can compete, scale and remain relevant in a technology-dominated economy.

"Skills such as coding, data analytics, cybersecurity awareness, digital marketing and AI literacy enable entrepreneurs to improve operational efficiency, reduce costs through automation and make faster, evidence-based decisions. According to the OECD Going Digital Toolkit, the right mix of digital competencies accelerates technology diffusion, improves productivity and reduces the skills mismatches that hinder economic performance. Coding enables custom solutions and automation. Data analytics uncovers customer insights. And AI literacy is becoming particularly critical because artificial intelligence is reshaping industries, from finance and education to healthcare and retail," says Kader.

The World Economic Forum's Future of Jobs Report 2025 confirms that AI is expected to disrupt nearly every industry, augmenting required skillsets across global labour markets.

"In practical terms, these skills lower costs (e.g., via automation), open new revenue streams (e.g. e-commerce, digital products), and future-proof businesses against disruption. Entrepreneurs who master them turn challenges like rapid tech change into opportunities for agile growth. Ultimately, digital skills empower entrepreneurs to innovate, remain agile and compete effectively in a rapidly evolving global economy," explains Kader.

Global Competitiveness

South Africa has long produced tertiary graduates with a skill set and work ethic that are highly sought after by international corporates. Many South Africans are poached straight after graduation lured to international pastures where they ply their trade. But are South African entrepreneurs viewed in the same light? Advancements in technology now provide a platform to showcase their abilities.

"South Africa's entrepreneurial talent is undeniable, but geography and infrastructure have historically limited access to global markets. Digital skills dissolve those barriers. Digital skills help South African entrepreneurs overcome traditional geographic and economic barriers by enabling them to participate in global digital ecosystems. Through digital platforms, entrepreneurs can market products internationally, access online marketplaces, engage in remote work opportunities and provide services across borders," says Kader.

The scale of opportunity being seized is already visible. South Africa's e-commerce market reached R71 billion in 2023, a 29% year-on-year increase, according to the WorldWideWorx South Africa Online Retail Report 2024. Entrepreneurs who have the digital skills to participate in that ecosystem are already competing globally. Those who do not are increasingly being left behind. Data analytics enables entrepreneurs to better understand global consumer trends and tailor products to international audiences. Digital communication tools facilitate collaboration with global partners, suppliers and clients in real time.

"Importantly, digital transformation supports inclusivity. South African entrepreneurs from underserved communities can use digital platforms to access funding opportunities and broader customer networks. This creates opportunities for economic participation and entrepreneurial growth that were previously inaccessible. As Africa’s digital economy continues to expand, entrepreneurs with strong digital capabilities will be better positioned to contribute to economic development," says Kader.

Closing the Unemployment Gap

Without even addressing the unemployment crisis of South Africans who are only armed with a Senior Certificate, the level of unemployment among tertiary graduates is growing significantly. Government is simply not able to create enough jobs to address the current crisis.

This has forced the youth, who are often responsible for providing for multiple family members and at times families, to turn to entrepreneurship as a means to avoid poverty. By encouraging digital skills among the youth, we will be arming them with a skill set whereby they wont have to rely on Government to create jobs for them.

"Access to digital education is critically important in addressing both youth unemployment and economic inequality in South Africa. The economy is becoming increasingly digitised, yet many young people still lack access to the digital infrastructure and opportunities needed to participate meaningfully in the modern workforce. Digital education equips individuals with practical and transferable skills that improve employability and entrepreneurial potential. Skills such as digital communication, coding, financial literacy, data analytics, cybersecurity awareness and AI literacy are increasingly valued across industries," says Kader.

According to Statistics South Africa's Quarterly Labour Force Survey Q1:2025, youth unemployment for those aged 15 to 34 stood at 46.1%, a 9.2 percentage point increase over the past decade. Of the 4.8 million unemployed young people in that period, 58.7% had no prior work experience whatsoever. That is nearly six in ten young people still waiting for their first opportunity. In a labour market that increasingly demands digital capability, a young person without digital skills faces a compounding disadvantage.

"More than 60% of future jobs are projected to require digital skills, according to the World Economic Forum. Digital education is not a supplementary offering; it is a core intervention. It creates alternative pathways into freelancing, entrepreneurship and the growing gig economy. Digital education also contributes to reducing inequality by providing individuals from diverse socio-economic backgrounds with access to global knowledge networks and online business ecosystems. Public-private partnerships, investment in digital infrastructure and curriculum innovation are all essential to ensuring that digital transformation becomes inclusive rather than exclusionary," says Kader.

The Tertiary Sector Role Player

Higher education institutions must embed digital skills across all disciplines while ensuring accessible learning opportunities for all students. MANCOSA’s flexible online and distance learning model expands access to quality education for students limited by geography, finances, or work commitments.

"By integrating digital skills into recognised qualifications, the institution extends digital education into underserved communities. Through strong industry partnerships, MANCOSA equips students with practical, workplace-ready capabilities while fostering innovation, entrepreneurship, and lifelong learning. The goal is to develop graduates who can responsibly lead digital transformation and help close Africa’s growing digital divide," says Kader.

Addressing Additional Challenges

Encouraging the digital skills among the youth is only the first part of the challenge. The second is facing challenges all too familiar to entrepreneurs of any skill level.

"The most common barriers are cost, connectivity and confidence. The digital divide remains a significant challenge, particularly in rural and under-resourced communities, limiting full participation in the expanding digital economy. There is also a trust barrier. Many entrepreneurs remain hesitant to digitise financial or customer data due to concerns around cybersecurity, privacy and technological complexity. These concerns are understandable. According to IBM’s annual Cost of a Data Breach Report, the global average cost of a data breach now exceeds US$4 million, a potentially devastating impact for many SMEs," says Kader

However, these challenges are surmountable. Addressing these challenges requires a collaborative approach involving government, educational institutions, industry and the private sector. Investment in digital infrastructure and affordable connectivity is particularly important. "Most importantly, practical and applied digital education builds the confidence entrepreneurs need to adopt technology strategically and responsibly. Entrepreneurs also need access to practical training and support ecosystems that help them adopt technology strategically. The broader goal is to demystify technology and position it not as a liability or disruption, but as an enabler of productivity, innovation and inclusive economic participation," says Kader.

Digital transformation should be approached incrementally. Small businesses do not necessarily need advanced systems immediately; even adopting basic digital tools such as cloud accounting, digital payment systems and social media marketing can significantly improve business performance.

Building an Inclusive Digital Future

South Africa’s economic future will depend on its ability to equip entrepreneurs with the digital skills needed to compete in an increasingly technology-driven world. By expanding access to digital education, strengthening industry collaboration, and supporting entrepreneurial innovation, institutions can help unlock sustainable growth and economic inclusion.

While challenges around access, affordability and infrastructure remain, targeted investment and practical training can bridge the digital divide. Empowering entrepreneurs with digital capabilities is no longer optional; it is essential to reducing unemployment, driving innovation and building a more resilient economy.

ISSUED FOR AND ON BEHALF OF MANCOSA

JONATHAN FAURIE

OF BULLION PR & COMMUNICATION

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