An assessment of South Africa’s digitaleconomy has been launched as part of the World Bank Group’sdigital economy for Africa (DE4A) initiative, whichleverages an integrated and foundations-based diagnosticframework to examine the present level of digital economydevelopment across Africa. The assessment will map thecurrent strengths and weaknesses that characterize thenational digital economy ecosystem, as well as identifychallenges and opportunities for future growth. Rapiddigital transformation is now re-shaping the global economy,permeating virtually every sector and aspect of daily life -changing the way one learns, work, trade, socialize, accesspublic and private services and information.Well-functioning digital economies are thus expected toachieve faster economic growth, offer innovative productsand services, as well as create more job opportunities.Assessing where strategic investments and interventions needto be made is a critical first step to enabling digitaleconomy growth. This background paper will provide anoverview of digital entrepreneurship in South Africa.