South Africa is one of the digitaleconomy leaders on the African continent, but lags developedcountries. In this context, the digital economy for Africatargets appear within reach for South Africa, althoughefforts need to be maintained. Launched in 2018 through acollaboration between the African Union (AU) and the WorldBank, the digital economy for Africa initiative aims toensure that every individual, business, and government inAfrica will be digitally enabled by 2030. South Africa canalso play a leading role for regional digital development,particularly within the context of the recently signedcontinental free trade area (CFTA) agreement, as well closerto home in the Southern Africa development community (SADC)and common market for Eastern and Southern Africa (COMESA)context, following on the East Africa single digital marketas an example. South Africa can assist by leading the agendato harmonize customs, disseminating best practices to othercountries around issues such as data regulation, improvementin the ecommerce environment, promotion of Africa widepayment systems, and the provision of an even strongerregional hub for tech entrepreneurs. In this context, theSouth African government is aiming to pass several reformsacross core elements of the digital economy, recognizing theneed for new policy directions and preparing for the fourthindustrial revolution (4iR). While South Africa’s wealthyhouseholds have broad access to quality and relativelyaffordable internet, people earning less than South Africanrand (ZAR) 7000 a month are largely unconnected. This reportreviews how the digital divide affects the foundations ofthe digital economy and provides policy options for bridgingthe divide. This report will provide a diagnostic and offerrecommendations on the five foundations of the digitaleconomy in South Africa. The report will examine challengesconcerning digital infrastructure, public digital governmentplatforms, digital financial services, digitalentrepreneurship, and digital skills.