Investing in digital infrastructure is crucial for South Africa's budgetary resilience

Ashley Lechman|Published

As South Africa prepares for its national budget, Vuyani Jarana advocates for a bold investment in digital infrastructure that promises to transform education, healthcare, and public safety while paving the way for long-term economic growth. Find out why this shift is crucial for the nation's future prosperity.

Image: IOL / Ron AI

As South Africa's Minister of Finance,  Enoch Godongwana, stands poised to unveil the Budget Speech amidst a fiscal tightrope, the urgency for strategic investment choices intensifies.

Vuyani Jarana, CEO of Ilitha Telecommunications urged a profound shift in the nation's budgeting strategies.

According to Jarana, without significant investment in digital infrastructure, South Africa risks perpetuating the very inequalities and inefficiencies that have hampered its growth.

“We understand the pressure on the fiscus and the hard trade-offs government has to make,” Jarana said.

He said that rather than perpetuating traditional spending patterns, government should rethink its priorities to build a more vibrant and competitive economy over the next decade and beyond.

"If it fails to invest in digital infrastructure now, there could be worsening issues: overcrowded universities, overwhelmed healthcare facilities, and rising crime rates," Jarana said.

The role of digital infrastructure in the economy

Jarana's argument centres on the premise that digital infrastructure will enable South Africa to maximise its resources.

"High-speed broadband and fibre connections to public institutions are not merely about technology; they are essential service enablers. Once infrastructure is in place, the marginal cost of adding another student or patient digitally becomes negligible,” he said.

Jarana said that this can revolutionise access to education and healthcare, sectors that are currently experiencing strain.

He highlights three key actions:

  • Government leadership: It must take the initiative by investing in a robust backbone of digital infrastructure that connects every school, clinic, and hospital.
  • Private sector engagement: Businesses should then leverage this backbone to deliver affordable and innovative services to households and enterprises.
  • Empowering people: Providing access means enabling communities to harness connectivity for educational, entrepreneurial, healthcare, and entertainment purposes; this fosters innovation.

Budget logo. As South Africa prepares for its national budget, Vuyani Jarana advocates for a bold investment in digital infrastructure that promises to transform education, healthcare, and public safety while paving the way for long-term economic growth. Find out why this shift is crucial for the nation's future prosperity.

Image: File.

“When the government makes a strategic decision to bolster connectivity, we can collectively address the country’s challenges,” Jarana said.

Addressing critical societal sectors through digitisation

The implications of investing in digital infrastructure extend far beyond mere connectivity, yhey offer transformative potential across several sectors, according to Jarana.

Jarana said, "On education, South Africa’s higher education system faces immense pressures as demand for tertiary education eclipses available capacity. Hybrid learning models proposed by the Department of Higher Education could offer a tangible solution. Without stable, affordable connectivity in underserved communities, these initiatives risk failing to reach their intended beneficiaries."

Pointing to healthcare, he said that with clinics already under strain, the advent of digitally-enabled care offers new pathways to alleviate pressure.

"By utilising remote diagnostics and telemedicine, health systems can offer wider access while preserving in-person treatments for serious cases. This transition, accelerated by the Covid-19 pandemic, would significantly benefit households that otherwise face income loss due to clinic visits," he added.

Another concern he pointed out is public safety.  

"The need for enhanced public safety resonates throughout South Africa. Leveraging broadband technology for surveillance and AI-driven analytics can make law enforcement more effective, especially in resource-constrained areas," he said. 

Jarana noted that these shared security models have begun to find success in rural areas, where internet-enabled solutions are already being employed.

As National Treasury negotiates between immediate fiscal pressures and visionary long-term strategies, Jarana stressed the importance of viewing digital infrastructure as a fundamental investment rather than a discretionary expenditure.

“We’re not advocating spending more just for the sake of it. Instead, we must focus on spending differently to unlock growth and expand access over time,” he said. 

“This is how we unlock opportunity at scale,” Jarana said.

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