Naspers, led by Koos Bekker, projects $5.2-billion e-commerce boost for South Africa

Feyisayo Ajayi -

Key Points

  • Naspers projects $5.2-billion economic boost by 2035 from e-commerce and digital platforms, contributing 1.38% to South Africa’s GDP.
  • Infrastructure improvements are crucial to fully capitalize on digital growth, with potential benefits accelerating if growth rates reach 3% or higher.
  • Naspers’ market cap reaches $37.3 billion, driven by a 16% share price surge and a historic R44 billion share buyback.

Naspers, led by South African billionaire Koos Bekker, anticipates significant economic gains from e-commerce and digital platforms. By 2035, these sectors are expected to add R91.4 billion ($5.2 billion) to South Africa’s economy, accounting for 1.38 percent of the GDP.

This projection is based on research by Naspers in collaboration with the Mapungubwe Institute for Strategic Reflection (Mistra). The study highlights that the economic benefits could materialize even sooner if the country’s growth rate improves to around 3 percent. Mistra’s Senior Researcher Machete Rakabe stressed the necessity of infrastructure upgrades, including enhanced data centers and digital identity systems, to fully leverage digital platforms’ potential.

Naspers aims for inclusive growth

Despite ongoing challenges such as energy shortages and deteriorating infrastructure, which have limited South Africa’s GDP growth to less than 1 percent over the past decade, digital platforms currently contribute approximately R5 billion ($281.6 million) to the economy. The new government of national unity, formed after the May 29 elections, might accelerate needed reforms and investments.

Phuthi Mahanyele-Dabengwa, CEO of Naspers South Africa, underscored the company’s commitment to fostering inclusive economic growth. She noted that the global shift towards digital platforms offers a significant opportunity for South Africa, potentially creating up to 340,000 jobs by 2035 in a country with one of the highest unemployment rates.

Naspers reaches new heights, as market cap hits $37 billion

Naspers, a South African multinational with a global presence in internet, media, and technology, boasts a diversified portfolio spanning online retail, publishing, and venture capital, operating across five continents and serving over two billion customers.

Koos Bekker, a titan of South African business, is credited with transforming Naspers from a traditional newspaper publisher into a leading player in e-commerce and cable TV. Despite holding a relatively modest 0.85 percent stake (1,687,887 ordinary shares), Bekker’s influence on the company’s direction remains significant.

The company has seen its shares surge more than 16 percent this year, elevating its market capitalization to R659 billion ($37.3 billion). Recently, Naspers executed a R44 billion ($2.4 billion) share buyback—the largest in the Johannesburg Stock Exchange’s history.