Digital transformation and e-commerce in South Africa

South African businesses are increasingly utilizing digital tools to manage supply chain risks and respond to disruptions. A report from Standard Chartered indicates that 90% of businesses find technology helpful for responding to such issues. However, a digital divide persists in the informal economy; while communication and payments are digitized, many township and micro-enterprises still rely on manual systems for invoicing and stock management. The Competition Commission noted that only 11% of township businesses sell through online marketplaces due to infrastructure and technical barriers.

In the broader retail sector, there is a notable gap between internet usage and e-commerce adoption. While approximately 79.1% of adults browse the internet, only 34.2% shop online regularly. Growth in this sector is currently hindered by consumer concerns regarding payment security, product quality, and delivery reliability. Research suggests that retailers may overcome these trust barriers by implementing recognized digital wallets and leveraging customer reviews, which influence purchasing decisions more significantly than traditional brand advertising.