
Google adds R118bn to SA economy – report

According to the report, an estimated 300 000 young adults in SA between the ages of 18-24 learnt a new digital skill through Google Search)
Led by research consultancy Public First and commissioned by the search engine giant, the Google Economic Impact Report highlights that its products generated an estimated R118 billion for businesses, nonprofits, publishers, creators and developers across South Africa in 2023.
This includes products and services such as Google Search, Google Play, Android, YouTube, Google Cloud and Google Advertising.
Paul Mayanja, Google SA’s interim country director, says it is part of their mission to ensure that Google’s products and services are helping accelerate the country’s digital evolution, thereby increasing the number of people with access to technology tools.
Mayanja says:
By prioritising affordable access for all local users, Google has empowered millions to connect to the internet for the first time and equipped thousands of businesses and creators.
The Google Economic Impact research was based on questions asked to online adults, who identified Google Search, Google Maps, Google Workspace and YouTube as among the 10 most helpful innovations of the last few decades, it said.
Some respondents said Google Search was an indispensable resource for students “whether it is researching facts, comparing prices, troubleshooting technical problems, staying updated with the news or performing basic calculations”.
According to the report, an estimated 300 000 young adults in South Africa between the ages of 18 and 24 learnt a new digital skill through Google Search, thus creating a R5 billion improvement in productivity.
Additionally, Google Search alone created a consumer surplus for the average online adult in South Africa worth R575 a month, or almost R6 900 a year, with 82% of respondents using search to look for a new job in the last year.
We estimate that Google Search and Google Workspace help knowledge workers save over 2.5 million hours a week. This is equivalent to a R72 billion improvement in productivity for the country’s economy.
YouTube has been credited with empowering a generation of digital entrepreneurs.
The report says nine in 10 YouTube creators agree that YouTube has given them a platform from which to share their creativity and culture with others, while also monetising their content.
About 46% of online adult respondents used Google Maps for public transportation routes or time, whereas 57% used it to avoid traffic congestion.
Shaping the entrepreneurship journey
The report touches on the fuelling of the South African economy by a dynamic entrepreneurial spirit, citing its number one position in Africa for the 2024 Global Startup Ecosystem Index.
So, it’s no surprise that 65% of adults surveyed consider themselves entrepreneurs while 15% work as entrepreneurs full time and 50% pursue their own business as a “side hustle”.
It adds that, on average, businesses report that 20% to 30% of their new customers are acquired through Google Search.
Furthermore, over 4 000 individuals locally have graduated from a Google Career Certificate Programme since 2018, with 77% of graduates experiencing positive career advancements within six months of completion.
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It shared another highlight – the use of Google’s tools by young start-ups, with many respondents confirming that internet tools such as Google Search, Gmail, Google Docs, and Google Workspace helped significantly reduce start-up costs.
Meanwhile, 78% of businesses under five years agreed that tools such as Google Search, Gmail, Docs, Workspace and Google Business Profile have significantly reduced start-up costs.
Google has made an effort to support ambitious young entrepreneurs across South Africa by helping them tackle the challenges of launching new businesses, through various funding initiatives.
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These include the Google for Startups Black Founders Fund, which has supported 135 entrepreneurs since 2021 with over R167 million of funding, and the Google Startups for Sustainable Development programme which has supported over 100 start-ups from 20 African countries.
Since 2022, the Google Hustle Academy has supported over 4 000 small to medium businesses across South Africa, with over 75% of graduates reporting a positive career outcome, like a new job, promotion or raise, it says.