The gig economy digitally connects freelancers with clients, to provide short-term services or asset-sharing.
South Africa’s online gig economy is struggling to take off, with the country’s sector trailing that of African counterparts, such as Kenya and Nigeria.
This is according to online job search platform JobLeads, which analysed data from the Online Labour Observatory and World Bank Group to reveal the countries dominating online gig work.
The analysis also sheds light on the most in-demand industries and the educational backgrounds of today’s thriving online freelancers.
According to the World Economic Forum (WEF), the gig economy uses digital platforms to connect freelancers with customers, to provide short-term services or asset-sharing.
It notes that in 2024, the gig economy was a $556.7 billion market, and is expected to more than triple to $1.847 billion by 2032.
WEF adds that for millions of people, working nine-to-five for a single employer or being on the payroll is no longer a reality. Instead, they balance various income streams and work independently, job-by-job.
JobLeads points out that SA has witnessed a 9% increase in its share of the global online gig economy over the past five years.
However, it says, despite this growth, the country lingers in the lower ranks, claiming just 0.17% of the world’s online freelance market. South Africa ranks number 59 out of 120 countries in the world’s online freelance market.
While the freelance sector in SA is expanding, its relatively small market size keeps it far from competing with the top freelancing destinations, says JobLeads.
Potential to boost economy
Martin Schmidt, co-founder and managing director of JobLeads, tells ITWeb via e-mail that several factors may contribute to SA’s slow gig economy growth.
“The traditional economy has long serviced South African industry. The country’s relatively high cost of living could also create barriers for freelancers who may struggle with inconsistent income. The skills gap and access to technology in rural areas might also limit participation in the online gig economy.”
He notes that software development and tech dominate the South African freelance landscape, accounting for 44.09% of online gig workers within the country.
Creative and multimedia roles follow at 19.29%, while clerical and data entry jobs make up 12.14%, with sales and marketing at 11.34%.
“When looking at the wider African continent, Kenya has emerged as a powerhouse in Africa’s online gig scene, experiencing a staggering 216% growth in online freelancers over the past five years,” Schmidt says.
“Nigeria follows closely, with an impressive 130% increase. South Africa, on the other hand, has seen a more modest 9% growth in its online freelancing workforce, lagging behind its African counterparts. Despite this, South Africa still commands a share of 0.17% of the global freelance market, trailing behind Kenya (0.37%) and Nigeria (0.27%), but slightly ahead of countries like Egypt and Cameroon, both at 0.11%.”
Schmidt believes the online freelance market holds immense potential for SA’s economy.
“It provides a flexible and scalable avenue for income generation, especially in a country grappling with high unemployment rates.”
According to Stats SA, the official unemployment rate in South Africa was 31.9% in the fourth quarter of 2024.
“Freelancing also taps into the global economy, giving South Africans access to international markets and clients, which can help diversify the country’s income streams. With the rise of remote work, South Africa could become an attractive destination for global tech and creative gigs, bolstering its GDP and creating opportunities for young professionals,” Schmidt notes.
To boost the country’s online gig economy, improving internet access across the country, particularly in rural areas, is critical, he points out.
“The government and private sector should also invest in educational programmes that equip people with the digital skills needed for freelancing, particularly in tech and creative sectors. Building a supportive ecosystem through platforms that connect South African freelancers to global clients, while also providing training, could further boost the sector.”
Meanwhile, JobLeads notes the US leads the charge in online freelancing, holding 28% of the global online freelance market.
Despite a slight 8% dip over the past five years, it states, the US remains the go-to hub for remote freelancing work. Leading the charge is Gen Z, with over half (52%) freelancing as they increasingly reject conventional nine-to-five jobs in favour of freedom.
Following in second is Spain, with its global freelance market share growing by 39% over the past five years. Spain now holds 6.98% of the online freelance market worldwide and its appetite for online gig work is on the rise, says JobLeads.
In fact, it adds, six out of 10 highly-educated freelancers in Europe now have no intention of returning to traditional salaried jobs.
Mexico ranks as the third-biggest destination for online gig workers, accounting for 4.63% of the global freelance market.
JobLeads explains that Mexico’s proximity to the US makes it an ideal choice for bilingual professionals. With the cost of living 65% lower than in the US, it notes, freelancers can stretch their income further and enjoy a higher quality of life.
Despite a 2% dip in global share over the past five years, the UK holds a respectable 4.11% of the worldwide online gig market.
The online job search platform says freelancers in the UK earn a median income of £42 857 per year – £16 357 more than the average employee.
Rounding off the top five online gig hotspots, Colombia’s freelance community has exploded by 48% in the past five years, now capturing 3.29% of the global share.
“The gig economy is booming worldwide, with the number of gig workers expected to rise by over 30 million in the next year alone. This rapid growth reflects a fundamental shift in how people approach work – flexibility and autonomy are no longer just perks but non-negotiables for today’s workforce,” says Schmidt.
“Especially among younger generations like Gen Z, professionals are increasingly drawn to the freedom that gig work offers. From choosing their own projects, to working remotely, this empowers individuals to take control of their careers. At the same time, businesses benefit from a global pool of skilled talent that freelancers bring to the table.
“As the sector continues to evolve, both workers and employers need to adapt to a new reality where traditional employment models may no longer meet the needs and expectations of the modern workforce.”
