Every generation inherits a different kind of economy. For generations before us, South Africa’s story was one of factories, foundries and assembly lines. After World War 2, our country built a thriving manufacturing base, supported by state intervention, cheap coal energy and a protected domestic market.
But by the 1980s, the gains we had made in industrialisation began to fade. Trade liberalisation exposed local industries to global competition, and at home unreliable electricity, rising costs and stagnant productivity slowly eroded our edge.
Jobs disappeared, factories closed and our shelves filled with imported goods. I saw this firsthand, having grown up in a community shaped by the once-thriving textiles industry of the Cape, where the sound of sewing machines marked daily life until, one by one, those factories fell silent.
By the time the new millennium arrived, we had become consumers of what the world made, rather than makers of what the world consumed. The challenge now is not to rewind history but to reimagine what industrialisation means in the digital age.
Across the country, a quiet transformation is taking place, from co-operatives moving fresh produce directly to restaurants through a mobile app to small logistics start-ups delivering packages faster than any national courier.
Each of these stories points to something powerful: e-commerce is becoming the new engine of making, one that connects local creativity with national and even global markets. It is the bridge between the informal and formal economy, between those often forgotten in South Africa’s peri-urban and rural areas and the world.
In just five years, e-commerce has surged from 1% to nearly 10% of all retail sales, a remarkable leap that signals both resilience and latent potential
This is why the Ecommerce Forum South Africa (EFSA), in partnership with the Takealot Group, has commissioned and published an independent research report by the Mapungubwe Institute for Strategic Reflection (Mistra) on the promise of e-commerce for South Africa’s quest for inclusive growth and reindustrialisation.
The research report — “Seizing the Moment: Unlocking South Africa’s Ecommerce Promise” — published this week, shows that our e-commerce maturity already outpaces other emerging markets such as India, Brazil, Kenya and Nigeria.
In just five years, e-commerce has surged from 1% to nearly 10% of all retail sales, a remarkable leap that signals both resilience and latent potential.
The next frontier is not about growth in numbers alone, but about deepening inclusion: enabling micro, small and medium enterprises (MSMEs) to participate meaningfully in the digital economy. The opportunity is immense: an estimated R900bn market lies untapped in South Africa’s townships, where millions of consumers and entrepreneurs remain excluded from mainstream e-commerce.
Targeted investment in township logistics, digital payments and local manufacturing could spark a new wave of inclusive growth, one that rebuilds industrial capability from the ground up. Unlocking this potential would not only expand the consumer base but also drive domestic production and job creation, strengthening South Africa’s competitiveness in a rapidly digitising global economy.
The promise of e-commerce will not automatically be realised. While there are success stories, the industry still faces serious challenges. More than 60% of township MSMEs operate informally, relying heavily on cash transactions and lacking digital infrastructure. This exclusion perpetuates inequality and limits the transformative potential of the sector.
To remove these barriers, the EFSA proposes an inclusive growth framework built on four pillars: connect, accelerate, regulate and trade:
- Connecting small businesses and citizens to affordable infrastructure and improving their digital access;
- accelerating their digital capabilities;
- regulating to build trust and fair competition; and
- expanding trade across markets and borders.
The next chapter of South Africa’s e-commerce story will depend on how effectively business, government and communities act together, not simply to participate in the digital economy, but to own a meaningful share of its future. E-commerce has already changed how we live, how we buy, sell and connect, but its true potential in South Africa is still waiting to be unlocked.
This is about more than technology; it’s about dignity, opportunity and belonging in a fast-changing world. If we act decisively, e-commerce can do for this generation what factories once did for ours: rebuild communities, spark local industry and open doors for millions.
The future isn’t somewhere else. It’s being built right here, in the hands of South Africans ready to connect, create and compete.
• Letsoalo is chair of the E-commerce Forum South Africa
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