The South African internet economy contributed R51 billion to the overall economy in 2010 and is expected to reach R103 billion by 2016, according to a new study out on Tuesday (29 May 2012).
The new report by the Boston Consulting Group found that by 2016, the total size of the G20 online economy will hit $4.2 trillion, equivalent to 5.3% of GDP, and up from $2.3 trillion in 2010.
SA’s online growth rate of 12.6% compares to an average 17.8% in other developing economies and puts the country at 17th in the G20, with the internet’s contribution to GDP up to 2.5%.
The report found that in 2010, the share of total retail in SA carrried out online totaled 1.2% and is projected to grow to 1.5% by 2016.
The report also underlined the growth at which the internet is driving small business. The BCG found that ‘high web’ companies, those that embraced the internet for marketing, sales and customer interaction, had grown revenues up 22% faster over the past three years, compared to those who made no use of the internet.