A new report commissioned by Meta and conducted by research firm Public First projects that artificial intelligence could add R528 billion to South Africa’s GDP by 2035, while Meta’s platforms are already contributing an estimated R16.5 billion annually to the national economy. The study, titled Meta’s Impact in South Africa, found that 910,000 small and medium enterprises used Meta’s apps — including WhatsApp, Facebook, Instagram, Messenger, and Threads — as core business infrastructure in 2025, collectively contributing R47.9 billion to GDP. From informal spaza shop traders in Soweto to design studios in Cape Town, businesses are using WhatsApp Business to manage orders, coordinate supply chains, and reach new customers, with messaging services alone saving an estimated R21.5 billion in communication costs. The report also highlights the transformative role of Meta’s 2Africa submarine cable and open-source AI tools like LLaMA in laying the foundation for the next wave of digital growth.
Key Overview
- AI GDP Potential: R528 billion added to South Africa’s GDP by 2035
- Current Platform Contribution: R16.5 billion annually to the economy
- SMEs on Meta Platforms: 910,000 businesses using Meta’s apps in 2025
- SME GDP Contribution: R47.9 billion collectively
- Messaging Savings: R21.5 billion saved through faster, cheaper communication
- Digital Economy Growth: From R495 billion today to a projected R874.5 billion by 2035
- 2Africa Cable Impact: Expected to add R62.7 billion annually to GDP by 2035 and connect 660,000 additional people
- Business Revenue: 87% of businesses say Meta platforms helped generate greater revenue
- AI Adoption Appetite: 69% of online business leaders would adopt open-source AI if accessible
- Open-Source AI in Action: Foondamate’s LLaMA-powered study assistant used by over 3 million learners
South Africa’s digital economy is valued at R495 billion today. By 2035, it could nearly double to R874.5 billion — and artificial intelligence could pile on a further R528 billion on top of that. Those are the headline projections from a new report by research firm Public First, commissioned by Meta, which paints a picture of a country where digital platforms have already become critical economic infrastructure and where AI stands to amplify that impact dramatically over the coming decade.
The report, titled Meta’s Impact in South Africa, found that Meta’s apps — Facebook, Instagram, WhatsApp, Messenger, Threads, and Meta AI — are contributing an estimated R16.5 billion annually to the South African economy. But the broader economic footprint is larger still: 910,000 small and medium enterprises used Meta’s platforms in 2025, collectively contributing R47.9 billion to GDP. Instant messaging across Meta’s apps alone saved businesses an estimated R21.5 billion by making communication faster and cheaper, according to the IT-Online coverage of the report.
SMEs Build Livelihoods on Digital Platforms
For South African small businesses, Meta’s tools have evolved from marketing channels into core operational infrastructure — bridging the gap between large corporations, the formal SME sector, and the country’s vast informal economy. The report found that 90% of online businesses using Meta’s platforms say the tools have opened new markets for them, while 81% of online adults say the platforms have helped them feel part of their community. Perhaps most striking, 87% of businesses surveyed reported that Meta had helped them generate greater revenue.
The patterns of adoption are wide-ranging. From spaza shops in Soweto to design studios in Cape Town, informal traders are using WhatsApp Business to manage orders, coordinate with suppliers, and reach customers well beyond their immediate streets. The report notes that this allows informal businesses to operate with many of the efficiencies traditionally associated with formal retailers — a dynamic that has significant implications in a country where the informal economy plays a central role in employment and livelihoods.
Balkissa Ide Siddo, Meta’s director of public policy for sub-Saharan Africa, framed the findings in terms of economic inclusion. “What stands out about South Africa is how our platforms are bridging the gap between the formal and informal economy,” she said. “When a township trader can use WhatsApp Business to manage orders with the same efficiency as a retailer in Sandton, that is real economic inclusion in action.”
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The 2Africa Cable: Laying the Physical Foundation
Underpinning much of this digital activity is physical infrastructure — most notably Meta’s 2Africa submarine cable, one of the largest subsea cable systems ever built at approximately 45,000 kilometres, connecting 33 countries across three continents. The core 2Africa system was completed in November 2025, with the cable landing in South Africa’s Western Cape, Eastern Cape, and KwaZulu-Natal provinces.
The cable was developed by a consortium including Meta, Bayobab (MTN Group), Vodafone/Vodacom, Orange, China Mobile International, center3 (stc), Telecom Egypt, and WIOCC, and delivers total trunk capacity of up to 180 terabits per second on key routes — more than the combined capacity of all existing subsea cables serving Africa. RTI International estimates the 2Africa system could contribute up to $36.9 billion to Africa’s GDP within the first two to three years of operation.
For South Africa specifically, Public First projects the cable could increase GDP by R62.7 billion annually by 2035 and bring an additional 660,000 people online. The report notes that 94% of online adults in South Africa say accessing reliable internet is significantly easier than it was a decade ago — though extending affordable access beyond major cities remains a critical challenge for the next phase of growth.
Meta is also planning an even more ambitious project: Project Waterworth, a 50,000 kilometre, 24-fibre-pair cable expected to connect the United States, India, Brazil, South Africa, and other regions — potentially further boosting South Africa’s role as a digital connectivity hub.
Open-Source AI: The Next Growth Frontier
The report’s most forward-looking projections centre on AI. Public First estimates that AI could add R528 billion to South Africa’s GDP by 2035 — contingent on the right combination of investment, infrastructure, and innovation policy. The appetite appears to be there: 73% of online South Africans believe AI developed within sub-Saharan Africa will be important for the continent’s economic growth, while 69% of online business leaders say they would adopt open-source AI tools if they were readily accessible.
Meta is positioning its open-source models as the vehicle for that adoption. Its LLaMA family of large language models and its No Language Left Behind translation tools are available to South African developers at no licensing cost, enabling local innovators to build solutions tailored to domestic industries, languages, and communities without the prohibitive expenses typically associated with proprietary AI.
The most prominent example cited in the report is Foondamate, a South African edtech company co-founded by Dacod Magagula and Tao Boyle. Built on Meta’s LLaMA models, Foondamate is an AI-powered study assistant that students can access directly through WhatsApp and Messenger — no downloads or sign-ups required. The platform has been used by more than 3 million learners, covering over 30 subjects aligned with the South African CAPS curriculum. Students have asked more than 100 million questions through the platform since its 2020 launch — a striking illustration of how open-source AI, paired with platforms people already use, can address real educational gaps in under-resourced communities.
Foondamate’s founding was inspired by Magagula’s own experience as a student in under-resourced schools, where he often lacked access to textbooks and used the internet to download study materials. The platform now operates in more than 30 countries, including Nigeria, Kenya, Mexico, and Pakistan, with its largest markets in South Africa, Zimbabwe, and Nigeria.
Context and Caveats
It is worth noting that the report was commissioned by Meta itself, and the projections — particularly the R528 billion AI GDP figure — are best understood as scenario modelling dependent on favourable policy, infrastructure investment, and adoption trajectories rather than guaranteed outcomes. South Africa’s digital economy faces genuine structural headwinds, including load-shedding-related connectivity disruptions, uneven broadband penetration outside major urban centres, and regulatory uncertainty around AI governance.
The broader sub-Saharan African digital economy figures provide useful context. According to Meta, the region’s digital economy is expected to grow from approximately $130 billion today to $300 billion by 2035, with Meta’s own investments generating an estimated $16 billion in economic value for businesses and consumers across the region in 2025. South Africa, as the continent’s most industrialised economy, stands to capture a disproportionate share of that growth — provided the infrastructure and policy environment keeps pace.
Alison Neyle, director at Public First, summarised the opportunity plainly: “With the right combination of infrastructure, platform access and open-source AI, the upside for South Africa is significant.”
The question, as always, is whether that right combination materialises — or whether the structural barriers that have held back South Africa’s broader economic performance prove equally stubborn in the digital realm.
Sources: ITWeb / Bizcommunity / Zawya / IT-Online / SME Tech Guru / iAfrica / Ghanamma / Connecting Africa / RCR Wireless / Meta Engineering Blog / Ecofin Agency / Data Center Dynamics / Vodafone / Techweez / Meta AI Blog
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