South Africa’s digital industry is among the fastest-growing segments of its economy. However, the low level of racial inclusion in funding and general financial muscle to compete is a growing concern, which will likely widen inequality in the future if left unaddressed. This is according to a provisional report by the country’s competition regulator, the Competition Commission (CompCom), on dominance abuse and anti-competitive behavior of online intermediation (B2C) platforms within its borders.
CompCom said a lack of funding due to exclusion from business networks, scarcity of wealth and asset accumulation blocked historically disadvantaged persons (HDPs), most of whom are Black, from being active players in the country’s digital economy.
The report further said startups founded by HDPs face greater pre- and post-revenue funding barriers when compared to those by white entrepreneurs. They also experience greater…
