Despite global trends showing a correlation between higher internet penetration rates and GDP growth, South Africa’s high internet penetration has failed to translate into robust economic growth. This is because uncapped fibre broadband reaches only 26% of the population, despite mobile internet penetration exceeding 80%, according to Net Nine Nine CEO Albert Oosthuysen.
Oosthuysen said in an interview last week with TechCentral that the country is measuring the wrong metric by focusing on mobile data access rather than fibre-to-the-home broadband, which he described as the key driver of the digital economy. According to Oosthuysen, citing research by Africa Analysis, as of March 2025, South Africa’s broadband penetration stood at 26%, compared to mobile penetration of more than 80%.
According to oft-quoted research by the World Bank, it has been shown in some studies that a 10% increase in broadband penetration can result in GDP uplift of more than a percentage point. However, South Africa’s fixed broadband penetration has grown slowly, increasing from 17% in 2022 and is expected to grow by only four percentage points this year, despite aggressive private sector roll-out.
Oosthuysen said fibre deployments are taking longer than anticipated, with rural areas and smaller towns remaining the most difficult to connect. He estimated that near-complete broadband penetration is still about five years away.
Net Nine Nine is a South African fibre internet service provider and network operator that’s expanding affordable internet access, particularly in underserviced areas.
Oosthuysen identified a lack of affordable backhaul infrastructure as a primary barrier to expansion. Backhaul refers to the main fibre links that connect towns, which are costly to build and are currently constructed by only a few private companies. As a result, connecting rural areas with fewer than 100 homes is often economically unviable.
Underestimated
The absence of backhaul infrastructure also affects network reliability, Oosthuysen said, noting that a single cable failure can disrupt both internet and mobile services for entire towns where no backup link exists.
Education is among the most affected sectors, he added, explaining that access to educational resources increases significantly once broadband is uncapped. With mobile data remaining costly and limited, activities such as accessing online learning platforms, YouTube tutorials and AI educational tools remain unaffordable for many users.
Oosthuysen said the contribution of the digital economy is likely underestimated in official statistics, which currently focus mainly on infrastructure sales. Citing a GSMA study, he said the digital economy already accounts for between 10% and 15% of South Africa’s GDP and is growing at a rate of about 1% annually.
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He added that when streaming services, social media monetisation, app development and digital payment platforms are fully accounted for, the size of the digital economy is expected to be significantly larger. – © 2026 NewsCentral Media
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