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SA urged to act on AI opportunities as market set to triple

Chris Tredger
By Chris Tredger, Technology Portals editor, ITWeb
Johannesburg, 24 Jul 2026
Solly Malatsi, minister of communications and digital technologies.
Solly Malatsi, minister of communications and digital technologies.

South Africa is at a "leapfrog" stage in adoption, and Huawei South Africa has called on organisations, policymakers, technology companies and government to act proactively to take advantage of emerging opportunities.

The call came at the annual Huawei South Africa Connect 2026 event hosted this week in Johannesburg.

Huawei said that unlike traditional AI, agentic AI systems can act independently, interact with other systems and make decisions with limited human intervention. Supporting those systems requires more than faster connections – it depends on resilient networks, cloud platforms, centres and the computing power needed to run autonomous systems at scale.

For a country still addressing a well-documented infrastructure gap, this presents both challenges and opportunities, Huawei said.

Nicholas Ma, corporate VP and president of the global government and enterprise key account department at Huawei, said SA's AI market is currently valued at more than R50 billion and is projected to triple by 2030. He added that 90% of survey respondents use AI during their working week.

Research cited by Huawei indicates that AI could contribute between R1 trillion and R1.4 trillion to SA's GDP by 2030 and create between 200 000 and 400 000 ICT jobs by the same year.

"AI is more than just a tool – the technology has moved into core production and operations," said Ma. "Thirty million active AI agents have been deployed globally and by 2035, there will be 90 billion agents deployed at an adoption rate of 85%."

Ma said AI was accelerating the intelligent transformation of industry and helping to grow the smart economy. He added that Gartner predicts AI will generate $4 trillion globally over the next five years, at a compound annual growth rate of 24%, and that by 2028, at least 20% of decisions will be made by an AI agent.

Global collaboration

Huawei South Africa said SA is one of 29 countries that have committed to establishing the World AI Cooperation Organisation, an intergovernmental body intended to promote collaboration on the ethical and responsible adoption of AI.

The company said agentic AI is expected to place increasing demands on SA's networks, cloud platforms and computing infrastructure.

Ma identified several barriers to wider AI adoption, including limited integration of AI into business workflows, enterprise data remaining in silos and a growing shortage of AI skills.

"We are standing on the threshold of a new era, but we need to act now," he said. "Vision without action is just a dream. We must move faster, act now and take decisive steps today – not just to secure our own success, but also for an ecosystem in which everyone thrives."

Will Meng, CEO of Huawei South Africa, said: "South Africa's journey into the AI era requires more than technology. It demands collaboration between government, industry and innovators. When the right infrastructure is in place, South Africa can turn digital ambition into long-term economic growth."

The importance of digital infrastructure was also highlighted by Solly Malatsi, minister of communications and digital technologies, who opened the event by stressing the need to expand access to technology and connectivity.

Malatsi said SA needs more affordable devices, universal connectivity, digital skills and infrastructure to support a digital economy.

"Technology should be a bridge to opportunities rather than a source of inequality," he said, adding that greater collaboration between government and industry, supported by appropriate policy and competition, is needed to build an inclusive digital economy.

Malatsi said as SA advances its digital transformation, inclusivity must remain a priority.

"Technology innovation and access to connectivity will ensure that every South African has a chance to participate in the digital economy," he said. "Digital innovation is both an economic and industrial imperative."

He also emphasised the need for policies that encourage competition, investment and skills development.

Malatsi said discussions about SA's digital future cannot ignore the rapid rise of AI, which, if deployed responsibly and with appropriate guardrails, has the potential to support the country's transition to a sustainable digital economy.

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