South Africa ranks second globally for education spending but near the bottom for digital skills and outcomes.

TechCentral

South Africa's digital competitiveness is declining relative to peer economies, according to the DBSA's Digital Infrastructure Investment Study 2025. Despite ranking second globally in education spending as a share of the national budget, the country places 60th in training and education outcomes and 62nd in regulatory framework on the IMD World Digital Competitiveness Index. Over 98% of the population has 4G coverage, yet meaningful internet usage remains far lower due to affordability barriers — data costs and device prices relative to income. The report estimates R108–142 billion in cumulative investment is needed by 2035 to connect all households to 100Mbit/s broadband, but stresses that supply-side investment alone is insufficient without addressing digital literacy and demand-side readiness.

Warning that South Africa’s digital competitiveness is in retreat

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