South Africa’s labour market continues to face structural challenges and a rapidly expanding working-age population, yet digital platforms are carving out a significant role as an economic lifeline. According to a new Ipsos report titled the Gig Economy South Africa Report, the gig sector now contributes approximately 2.8% to the country’s national GDP and supports up to 2 million participants.
The report highlights the e-hailing business as a particularly important income source, with about 30% of sampled participants relying on it for primary household earnings.
Witness Sonika, Director of Ipsos Strategy 3 and one of the lead researchers behind the study, provided deeper insights into the findings. The research, commissioned by Bolt, examined the gig economy across Kenya, Nigeria, and South Africa to assess its scale and economic contribution.
In South Africa, the gig economy accounts for roughly 7.6% to 8% of the labour force, Sonika noted. Across the three markets, participants in the sector generated substantial earnings — around $5 billion annually in both South Africa and Nigeria, and over $1 billion in Kenya. While the direct figure is presented as 2.8% of GDP, Sonika explained that the true economic contribution is likely higher when accounting for multipliers such as fuel consumption, taxes, and related economic activity.
High unemployment rates are a key driver of participation. South Africa’s overall unemployment stands at approximately 33%, rising sharply to 62-64% among youth. Similar patterns exist in Kenya (over 40% overall, around 70% for youth) and Nigeria. These figures help explain the strong uptake of gig work, particularly e-hailing and e-commerce platforms.
Motivations for joining the gig economy vary by country. In South Africa and Kenya, the primary driver is the need for a source of income, while in Nigeria it often serves as supplementary earnings. Within South Africa’s ride-hailing segment, 30% of respondents indicated that earnings from e-hailing form their primary source of income, compared to 70% who view it as secondary. This marks a shift from previous years, when gig work was more commonly seen as a side activity.
The report also examined the perceived impact on participants’ lives. Close to 90% of those surveyed in the ride-hailing space reported that involvement in the gig economy has improved their lifestyle, though external factors may also play a role. Sonika noted ongoing collaborative efforts between platform operators and government on policies and measures that support greater participation and better outcomes.
Regarding the National Land Transport Amendment Act, implemented in 2023 to enhance safety for e-hailing operators, the current study did not directly test its correlation with improved driver safety. A separate 2025 safety survey conducted for Bolt focused primarily on passenger perceptions and showed improvements in feelings of safety over time. Further research is planned to explore potential links for drivers.
Payment systems remain a notable point of difference across markets. In South Africa, approximately 80% of e-hailing transactions are still cash-based, in contrast to Kenya’s more advanced mobile money integration through platforms such as M-Pesa. Sonika pointed out that lower digital payment maturity can create friction for drivers and passengers alike, potentially opening opportunities for financial services providers and gig platforms to develop tailored solutions, such as specialised accounts for gig workers.
Overall, the Ipsos findings underscore how the gig economy is providing critical livelihoods for young people across South Africa, Nigeria, and Kenya, even as structural barriers like unemployment and payment infrastructure persist. The sector’s growing role signals an important evolution in the future of work in the region.