Google’s products and services in South Africa generated R118 billion ($6.7 billion) in new revenue for local businesses, non-profits, publishers, creators and developers in 2023.
This is according to a Google Economic Impact report, commissioned by the internet giant and conducted by policy, research and strategy consultancy Public First.
The research reveals that Google’s economic impact − derived from products and services, including infrastructure development, support for start-ups, and the introduction of innovative tools and services − contributed an estimated R118 billion to the South African economy last year.
This includes economic activity from services such as Google Search, Google Play, Android, YouTube, Google Cloud, Google Advertising and Google’s skills development initiatives.
According to the report, SA continues to be at the forefront of Africa’s technological revolution, with the country seeing significant growth in internet usage over the past decade. It estimates that by 2030, internet adoption could reach about 87% of SA’s population.
Speaking at the launch of the report in Johannesburg today, Google SA interim country director Paul Mayanja noted the study confirms Google’s continued role in improving the lives of South Africans.
“South Africa leads the continent when it comes to digitisation. With the highest mobile and internet penetration rates in Africa, the country is now primed to lean into emerging technologies such as artificial intelligence and cloud over the coming decade.
“However, there is still work to be done to ensure everyone benefits. It is part of our mission to ensure Google’s products and services are helping to fast-track the country’s digital evolution, thereby increasing the number of people with access to technology tools.”
The research methodology entails economic modelling consistent with established methodologies, conducted by Public First’s team of global economists.
As part of the research, a survey of 979 online adults across the country was conducted. Another online survey polled almost 1 000 business executives and YouTube creators combined.
The report estimates that in 2023, Google Search alone created a consumer surplus for the average online adult in SA worth R575 a month, or almost R6 900 a year.
A consumer surplus takes place when the price consumers pay for a product or service is less than the price they are willing to pay.
The research found SA’s youth are particularly eager to participate in the digital economy, with 93% of online young adults recognising the importance of digital skills for their future careers.
As a result, many turned to Google Search to develop their technical expertise. Over 300 000 young adults aged 18 to 24 acquired new digital skills through Google Search in 2023, leading to an estimated R5 billion increase in national productivity.
Over 4 000 individuals in SA have graduated from a Google career certificate programme since 2018, with 77% of graduates experiencing positive career advancements within six months of completion, the study found.
Another highlight is the use of Google’s tools by young start-ups, with many respondents confirming Google Search, Gmail, Google Docs and Google Workspace had helped to significantly reduce start-up costs.
The Google Start-ups for Sustainable Development programme has supported entrepreneurs from over 100 start-ups across 20 African countries, it says.
“By prioritising affordable access for all local users, Google has empowered millions to connect to the internet for the first time and equipped thousands of businesses and creators,” adds Mayanja.
“To this end, Google is taking significant steps to champion ambitious young people across the country, helping them to overcome the challenges associated with starting a new business.”
