The IT Industry in South Africa 2019 –

IT spend in South Africa is forecast to increase at a higher pace than the economy in 2019. Although the general state of the economy has a direct impact on the growth of the ICT sector, its customers continue to invest in technology and the sector consistently shows a growth rate that is higher than GDP.

Cybersecurity is a high priority, with global statistics indicating that South Africa is the third most targeted country in the world for cyber-attacks. Alleged IT-related procurement irregularities revealed through a number of commissions of inquiry and investigations continue to affect the reputation of some industry players. It is estimated that there are over 13,000 IT companies and over 3,000 electronics companies in South Africa with the vast majority being small companies employing less than 50 people.

New and growing trends will provide significant opportunities for small and large players in the sector. These include growth in telecommunications, data centre revenues and artificial intelligence and the internet of things, where start-ups are expected to lead innovation. Digital transformation to improve customer experiences and online purchasing, fintech banking, blockchain, augmented reality and virtual reality are some of the technologies that will disrupt the South African ICT industry in 2019. The industry is characterised by consolidation and convergence of companies within the IT sector, and between companies in the IT and telecommunications sectors.

This report focuses on the IT industry, including hardware manufacturing, assembly, and supply; software development and supply; and retail sales of both hardware and software. It examines the state and size of the industry, trends, new technologies and innovations and factors influencing the sector’s success. There are comprehensive profiles of 112 companies including South African units of international groups such as Microsoft, Dell and Oracle, and South African-bred companies such as AdaptIT, Altron and Dimension Data, as well as companies under pressure such as EOH and Ayo Technologies, which is the subject of investigation following an investment by the Public Investment Corporation.

Key Topics Covered:

1. Introduction

2. Description Of The Industry

2.1. Industry Value Chain

2.2. Geographic Position

3. Size Of The Industry

4. State Of The Industry

4.1. Local

4.1.1. Corporate Actions

4.1.2. Regulations

4.1.3. Enterprise Development And Social Economic Development

4.2. Continental

4.3. International

5. Influencing Factors

5.1. Economic Environment

5.2. Strong IT Investment in the Education Sector

5.3. Private Sector and Government Initiatives

5.4. E-commerce

5.5. Smart Provinces and Smart Cities

5.6. Technology, Research and Development (R&D) and Innovation

5.7. Labour

5.8. Cybersecurity and Crime

5.9. Environmental Issues

5.10. Cyclicality

5.11. Electricity Supply Constraints

6. Competition

6.1. Barriers to Entry

7. SWOT Analysis

8. Outlook

9. Industry Associations

10. References

Companies Mentioned

4Sight Holdings Ltd
Accenture (South Africa) (Pty) Ltd
Alviva Holdings Ltd
AOLC On-line (Pty) Ltd
AYO Technology Solutions Ltd
Blue Label Telecoms Ltd
ContinuitySA (Pty) Ltd
Daddy’s Deals (Pty) Ltd
Datatec Ltd
Dell Computer (Pty) Ltd
EOH Holdings Ltd
Gijima Group Ltd
ITEC SA (Pty) Ltd
JD Group (Pty) Ltd
Kid Zone (Pty) Ltd (The)
Lenovo (South Africa) (Pty) Ltd
LG Electronics SA (Pty) Ltd
Lightstone Consumer (Pty) Ltd
Metrofile Holdings Ltd
Microsoft (S A) (Pty) Ltd
Oltio (Pty) Ltd
Onedayonly Offers (Pty) Ltd
PBT Group Ltd
QCK Lezmin 4648 CC
SAS Institute (Pty) Ltd
SBE International SA (Pty) Ltd
Setcom (Pty) Ltd
Siemens (Pty) Ltd
Trillobate Marketing (Pty) Ltd
Trustlink (Pty) Ltd
Visio Pix (Pty) Ltd
Vsolution (Pty) Ltd
Wizzit Payments (Pty) Ltd
Wootware Computers (Pty) Ltd