Presented by RMB

B20 and Bridging South Africa’s Digital Divide

Partner

 ·1 Oct 2025

By Arun Varughese, Head of TMT (Telecoms, Media & Technology) at RMB

South Africa’s G20 presidency has sparked a bold mission through the B20 Digital Transformation Task Force: crafting a roadmap for inclusive digital growth. 

As a member of the B20 Digital Transformation Task Force, we see the regulatory framework as a key to propel economic growth through inclusive digital strategies.

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The B20 task force policy paper includes recommendations, policy actions, KPIs, and case studies to guide G20 nations in implementing impactful digital policies. 

The stakes are high. 

Over 2.6 billion people—mostly in developing regions—remain offline.

The International Telecommunication Union reports 83% internet penetration in urban areas but only 48% in rural ones, with 96% of offline individuals in developing countries. 

The World Economic Forum’s Future of Jobs Report warns that 39% of job skills will shift by 2030, yet 11% of workers may lack training to adapt.

Misaligned AI governance fuels ethical and trust issues, while digital public infrastructure could be a game-changer if governments prioritize it.

Africa’s connectivity gap—high data costs and unconnected populations—drives inequality. The B20’s recommendations offer a clear path forward:

1. Universal Connectivity: Treat access as a human right, expanding affordable, reliable digital infrastructure, especially in underserved areas.  
2. Digital Literacy: Bolster national systems to equip workers with skills for future job markets.  
3. Ethical AI Governance: Align globally on accountable AI frameworks to ensure ethical development.  
4. Digital Public Infrastructure: Foster secure ecosystems to spur private-sector innovation.  

These steps aren’t just for Africa—they’re a blueprint for South Africa’s digital leap.

South Africa’s Telecom Transformation 

South Africa’s urban telecom scene shines, with fibre infrastructure rivaling global leaders, backed by robust national and undersea cables.

But the real challenge lies in the last mile—rural areas and lower-income markets.

Over the next three to five years, innovative models like prepaid fibre from Vumatel, Octotel, and Fibretime are set to disrupt.

Township residents can now access unlimited fibre for mere rands daily, a stark contrast to pricey suburban subscriptions.

Digital access is becoming a lifeline, bridging gaps in education, healthcare, and e-commerce. Lower data costs and affordable smartphones are also key enablers.

While urban solutions don’t fit townships, flexible pricing and consumer-centric approaches are driving uptake.

South Africa could lead Africa, where high data costs and offline populations persist, by scaling these innovations.

AI: The Next Frontier

Since ChatGPT’s debut in November 2022, AI has reshaped industries by August 2025. South Africa’s draft AI policy is a start, but it must evolve fast. 

Three pillars can propel progress:  

• Policy: A globally aligned framework to foster innovation and trust.  
• Capital: Leverage local data for tailored AI applications, with government incentives like tax breaks to spur investment.  
• Talent: Reform curricula in TVET colleges and universities to produce AI specialists, drawing from examples set by Singapore’s 1 000+ AI courses or Italy’s training of 8 000+ schools.

Affordability remains a hurdle—devices and data must be cheap. Public-private partnerships, like zero-rating educational sites, can ensure free access to learning resources.

A Bright Future  

South Africa’s digital potential is electric. With mergers fueling infrastructure, AI policies maturing, and literacy initiatives growing, the nation can close its digital divide.

This isn’t just about faster internet—it’s about empowering millions, boosting GDP, and securing a competitive edge.

The time for bold investment and inclusive policies is now. Let’s seize it.

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