South Africa\u2019s digital economy is the most developed in Africa, and one of the fastest growing in the world.<\/p>\n
This is according to the new Digital Evolution Index developed by MasterCard and The Fletcher School at Tufts University that tracks a country\u2019s movement toward digital evolution, gauges progress and assesses challenges in 50 countries comprising the Index.<\/p>\n
South Africa ranks 33 out of the countries measured by the index in digital readiness, which is defined by the markets\u2019 ability to support and encourage digital commerce and payments.<\/p>\n
In Africa, it ranks ahead of Egypt (48), Kenya (49), and Nigeria (50).<\/p>\n
South Africa also emerged as the fourth fastest growing digital economy behind China, Malaysia and Thailand, the index found.<\/p>\n
\u201cSouth Africa\u2019s speed of growth can be attributed to the rapidly increasing proportion of the population with Internet access, an 86% adult mobile phone penetration rate, and a highly developed telecommunications network,”\u00a0said Ted Iacobuzio, VP, Global Insights, MasterCard.<\/p>\n
“However, what is significant is that all four of the African countries measured share a common trait of moving at a high rate of speed toward digital evolution, demonstrating huge growth potential for e-commerce.”<\/p>\n
The Index analyses four key underlying drivers and barriers that govern a country\u2019s evolution into a digital economy:<\/p>\n
Each country is given an overall digital readiness score between 0 and 100, which is derived from an average score of the four interdependent drivers.<\/p>\n
South Africa is seen as a \u2018Break Out\u2019 country with an overall score of 30 out of 100 in 2013. Its score jumped from 24 to 34 between 2008 and 2012, a substantial increase compared to other countries.<\/p>\n
\u2018Break Out\u2019 countries are typically developing countries that currently have low readiness scores, but are rapidly evolving, Mastercard said.<\/p>\n
While infrastructure investments in South Africa will drive e-commerce to achieve a likely 30% growth rate in 2014, the Index indicates that demand for e-commerce currently lags the global average.<\/p>\n
\u201cSouth Africa may have a relatively average Index score overall, but its digital landscape is evolving rapidly. If this evolution continues at its current rate, South Africa has the potential to grow into a strong digital economy. It is a prime candidate for becoming a \u2018Stand Out\u2019 nation in the future,\u201d said Iacobuzio.<\/p>\n
Globally, Singapore, Sweden and Hong Kong are the top three countries on the Index with the most active and advanced digital economies with scores of 56, 55 and 53.5 respectively.<\/p>\n
The United Kingdom and Switzerland round out the top five, while the United States ranks sixth among the 50 countries measured.<\/p>\n
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