Meta Report Projects AI Could Add R528 Billion to South Africa’s GDP as SMEs Build Livelihoods on Its Platforms

Meta’s platforms already contribute R16.5 billion annually to South Africa’s economy, and artificial intelligence could add a further R528 billion to GDP over the next decade, according to a new report by research firm Public First commissioned by Meta.

The report, titled Meta’s Impact in South Africa, found that 910,000 small and medium enterprises are using apps including WhatsApp, Facebook and Instagram as core business infrastructure — bridging the divide between large corporations, a vibrant SME sector and the informal economy. Nine in 10 online businesses on 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.

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 beyond their immediate streets — a pattern the report says allows informal businesses to operate with the efficiency of formal ones.

Balkissa Ide Siddo, director of public policy for sub-Saharan Africa at Meta, said the platforms are doing more than enabling commerce. “What stands out about South Africa is how our platforms are bridging the gap between the formal and informal economy. 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,” she said.

“This research confirms what we see every day: 910,000 South African SMEs are not just using our platforms, they are building livelihoods on them. And with the 2Africa cable now landed across three provinces and open-source AI tools like LLaMA available to any South African developer at no cost, the infrastructure for the next phase of growth is already here,” Siddo added.

Meta’s 2Africa submarine cable has landed in the Western Cape, Eastern Cape and KwaZulu-Natal provinces. By 2035, it could increase South Africa’s GDP by R62.7 billion annually 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 essential for the next phase of growth.

On open-source AI, the report highlights significant potential. It projects that AI could add R528 billion to South Africa’s GDP by 2035 with the right combination of investment, infrastructure and innovation. Seventy-three percent 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 definitely adopt open-source AI tools if they were accessible.

Meta’s open-source AI models and developer tools — including LLaMA and No Language Left Behind — are helping South Africans build solutions for local industries, languages and communities without prohibitive licensing costs. One example cited in the report is Foondamate, a South African company built on Meta’s LLaMA models that has created an AI study assistant accessed by more than 3 million learners directly on WhatsApp and Messenger.

Alison Neyle, director at Public First, said the findings underscore the scale of South Africa’s digital opportunity. “South Africa’s digital transformation is creating new opportunities for businesses, creators and consumers alike. The findings show that Meta’s platforms are helping South African firms grow across formal and informal sectors, supporting entrepreneurship and strengthening participation in one of the world’s most rapidly expanding digital economies. With the right combination of infrastructure, platform access and open-source AI, the upside for South Africa is significant,” she said.