Report Coverage
The South African Information Technology Sector report describes current conditions in the industry which comprises hardware manufacturing, assembly, consulting and supply; software development, consulting and supply; and retail sales of hardware and software. Recent developments including the challenges facing the IT sector and merger and acquisition activity are included in this detailed report. In total 97 companies involved in the sector are profiled, ranging from major players EOH Holdings Ltd and Dimension Data, to small consultancies such as Faranani IT Services (Pty) Ltd and Evetech (Pty) Ltd, a computer system builder and retailer of computer related products.
The South African Information Technology Sector
Information Technology (IT) has become an important enabler of economic development and social inclusion, and in the words of the Minister of Telecommunications and Postal Services, “It transforms how we live, how we do business, how we relate to each other and even how we play.” Increasing by 3.8% from 2015, South African IT spend for 2016 is expected to reach R272bn. Although estimates of the IT sector’s contribution to GDP vary between 1% and 6%, most stakeholders agree that delays in the implementation of the National Integrated ICT Policy White Paper and vital projects such as digital migration and SA Connect are restricting the growth of the sector as well as South Africa’s economic growth and social development.
A Rapidly Changing Sector
Within the IT sector the latest trend is the 4th Industrial Revolution which consists of new technologies that will seamlessly connect billions of people and devices, thereby having an impact on all disciplines, economies and industries. These advances in technology have been identified as the top megatrend that will transform the ways in which companies do business over the next five years. The IT industry is characterised by consolidations and convergence of companies within the sector, and between companies in the IT and telecommunications sectors. Analysts believe that in such a competitive and rapidly changing industry, it is critical to maintain a competitive edge through mergers, key acquisitions, joint ventures, partnerships, expansion and disposals.
Historical Reports
The IT Industry in South Africa 2022-04-30
R 13 500.00(ZAR) estimated $854.28 (USD)*
View Report Add to CartThe IT Industry in South Africa 2020-09-11
R 6 500.00(ZAR) estimated $411.32 (USD)*
View Report Add to CartThe IT Industry in South Africa 2019-04-17
R 1 900.00(ZAR) estimated $120.23 (USD)*
View Report Add to CartThe IT Industry in South Africa 2017-12-11
R 1 900.00(ZAR) estimated $120.23 (USD)*
View Report Add to CartThe IT Industry in South Africa 2015-05-25
R 1 900.00(ZAR) estimated $120.23 (USD)*
View Report Add to CartTable of Contents
| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Value Chain | 3 |
| 2.2. | Geographic Position | 4 |
| 3. | SIZE OF THE INDUSTRY | 5 |
| 4. | STATE OF THE INDUSTRY | 15 |
| 4.1. | Local | 15 |
| 4.1.1. | Corporate Actions | 21 |
| 4.1.2. | Regulations | 29 |
| 4.1.3. | Enterprise Development and Job Creation | 34 |
| 4.2. | Continental | 36 |
| 4.3. | International | 43 |
| 5. | INFLUENCING FACTORS | 49 |
| 5.1. | Economic Environment | 49 |
| 5.2. | Government and Private Sector Initiatives | 51 |
| 5.3. | ICT Industrialisation and SMME Development | 52 |
| 5.4. | Strong IT Investment in the Education Sector | 54 |
| 5.5. | “Smart Provinces” and “Smart Cities” | 55 |
| 5.6. | Technology, Research and Development (R&D) and Innovation | 58 |
| 5.7. | Labour | 60 |
| 5.8. | Cybercrime | 65 |
| 5.9. | Environmental and Social Issues | 67 |
| 5.10. | Electricity Supply Constraints | 69 |
| 6. | COMPETITION | 70 |
| 6.1. | Barriers to Entry | 71 |
| 7. | SWOT ANALYSIS | 72 |
| 8. | OUTLOOK | 73 |
| 9. | INDUSTRY ASSOCIATIONS | 73 |
| 10. | REFERENCES | 75 |
| 10.1. | Publications | 75 |
| 10.2. | Websites | 76 |
| APPENDIX 1 | 79 | |
| PricewaterhouseCoopers Essential Eight Technologies – Description | 79 | |
| APPENDIX 2 | 80 | |
| International Telecommunications Union: The Connect 2020 Goals and Targets | 80 | |
| APPENDIX 3 | 81 | |
| SMME Hardware Manufacturers, Hardware Suppliers and e-Waste Refurbishers | 81 | |
| APPENDIX 4 | 83 | |
| Real-world Salaries of IT Professionals in South Africa | 83 | |
| COMPANY PROFILES - COMPUTER & RELATED ACTIVITIES | 84 | |
| ACCENTURE (SOUTH AFRICA) (PTY) LTD | 84 | |
| ACI GLOBAL LTD | 86 | |
| ADAPTIT HOLDINGS LTD | 88 | |
| AFRIHOST (PTY) LTD | 91 | |
| ALLIED ELECTRONICS CORPORATION LTD | 93 | |
| ATTACHMATE GROUP SOUTH AFRICA (PTY) LTD | 97 | |
| BARONE BUDGE AND DOMINICK (PTY) LTD | 99 | |
| BIDVEST OFFICE (PTY) LTD | 101 | |
| BLUE LABEL TELECOMS LTD | 104 | |
| BUSINESS CONNEXION (PTY) LTD | 109 | |
| CASH CONNECT MANAGEMENT SOLUTIONS (PTY) LTD | 114 | |
| CASH PAYMASTER SERVICES (PTY) LTD | 116 | |
| CCI TECHNOLOGY SOLUTIONS (PTY) LTD | 118 | |
| CHM VUWANI COMPUTER SOLUTIONS (PTY) LTD | 120 | |
| CISCO SYSTEMS (SOUTH AFRICA) (PTY) LTD | 123 | |
| DATACENTRIX HOLDINGS LTD | 124 | |
| DATATEC LTD | 128 | |
| DELOITTE SOUTH AFRICA | 133 | |
| DIMENSION DATA (PTY) LTD | 137 | |
| DIRECT TRANSACT (PTY) LTD | 140 | |
| DOCU-FILE JHB (PTY) LTD | 142 | |
| DOCUMENT WAREHOUSE (PTY) LTD (THE) | 144 | |
| EASYPAY (PTY) LTD | 147 | |
| ECENTRIC PAYMENT SYSTEMS (PTY) LTD | 149 | |
| ENTERPRISE ELECTRONIC COMMERCE (SA) (PTY) LTD | 151 | |
| EOH HOLDINGS LTD | 153 | |
| ERNST AND YOUNG ADVISORY SERVICES (PTY) LTD | 157 | |
| FACE TECHNOLOGIES (PTY) LTD | 162 | |
| FARANANI IT SERVICES (PTY) LTD | 164 | |
| FLASH MOBILE VENDING (PTY) LTD | 166 | |
| FUJITSU SERVICES (PTY) LTD | 169 | |
| GIJIMA GROUP LTD | 170 | |
| HETZNER (PTY) LTD | 174 | |
| HEWLETT-PACKARD SOUTH AFRICA (PTY) LTD | 176 | |
| IBM SOUTH AFRICA (PTY) LTD | 178 | |
| INTEGR8 IT (PTY) LTD | 180 | |
| INTEL SOUTH AFRICA CORPORATION | 182 | |
| IT-DYNAMICS (PTY) LTD | 184 | |
| ITEC DISTRIBUTION (PTY) LTD | 186 | |
| KPMG SERVICES (PTY) LTD | 188 | |
| LIGHTSTONE CONSUMER (PTY) LTD | 191 | |
| M I B TECHNOLOGY (PTY) LTD | 193 | |
| MARINE DATA SOLUTIONS (PTY) LTD | 195 | |
| MCKINSEY AND COMPANY AFRICA (PTY) LTD | 197 | |
| MEDIKREDIT INTEGRATED HEALTHCARE SOLUTIONS (PTY) LTD | 199 | |
| METROFILE HOLDINGS LTD | 201 | |
| MICROSOFT (S A) (PTY) LTD | 205 | |
| MONDIAL IT SOLUTIONS (PTY) LTD | 208 | |
| MORVEST GROUP (PTY) LTD | 210 | |
| MUSTEK LTD | 213 | |
| OLTIO (PTY) LTD | 217 | |
| ORACLE CORPORATION (SOUTH AFRICA) (PTY) LTD | 219 | |
| PARACON SA (PTY) LTD | 221 | |
| PAYCORP CORPORATE SERVICES (PTY) LTD | 223 | |
| PAYCORP GROUP (PTY) LTD | 225 | |
| PINNACLE HOLDINGS LTD | 227 | |
| PRICEWATERHOUSECOOPERS INC | 231 | |
| PRISM PAYMENT TECHNOLOGIES (PTY) LTD | 241 | |
| RICOH SOUTH AFRICA (PTY) LTD | 243 | |
| SAGE SOUTH AFRICA (PTY) LTD | 245 | |
| SAS INSTITUTE (PTY) LTD | 247 | |
| SETCOM (PTY) LTD | 249 | |
| SIEMENS (PTY) LTD | 251 | |
| SILKWOOD TRADING 18 (PTY) LTD | 254 | |
| SOUTH AFRICAN BANKERS SERVICES COMPANY (PTY) LTD | 255 | |
| SPARK ATM SYSTEMS (PTY) LTD | 257 | |
| STATE INFORMATION TECHNOLOGY AGENCY SOC LTD | 259 | |
| STELLAR CAPITAL PARTNERS LTD | 263 | |
| SYSTEMS APPLICATIONS PRODUCTS (SOUTH AFRICA) (PTY) LTD | 266 | |
| T-SYSTEMS SOUTH AFRICA (PTY) LTD | 268 | |
| TRANSACTION CONTROL TECHNOLOGIES (SA) (PTY) LTD | 270 | |
| TRUSTLINK (PTY) LTD | 272 | |
| UCS SOLUTIONS (PTY) LTD | 274 | |
| VERIFONE AFRICA (PTY) LTD | 276 | |
| VSOLUTION (PTY) LTD | 278 | |
| WIZZIT PAYMENTS (PTY) LTD | 280 | |
| COMPANY PROFILES - WHOLESALERS OF LAPTOPS, DESKTOPS AND PERIPHERALS | 282 | |
| ACER AFRICA (PTY) LTD | 282 | |
| ASUSTEK COMPUTER INC | 284 | |
| AXIZ (PTY) LTD | 290 | |
| DELL COMPUTER (PTY) LTD | 292 | |
| ESQUIRE SYSTEM TECHNOLOGY (PTY) LTD | 294 | |
| FUJITSU SERVICES CORE (PTY) LTD | 296 | |
| HISENSE SA SALES HOLDINGS (PTY) LTD | 298 | |
| HUAWEI TECHNOLOGIES AFRICA (PTY) LTD | 299 | |
| INTEL SOUTH AFRICA CORPORATION | 301 | |
| LENOVO (SOUTH AFRICA) (PTY) LTD | 303 | |
| LG ELECTRONICS SA (PTY) LTD | 305 | |
| MICROSOFT (S A) (PTY) LTD | 307 | |
| MUSTEK LTD | 310 | |
| SAMSUNG ELECTRONICS SOUTH AFRICA (PTY) LTD | 314 | |
| TARSUS DISTRIBUTION (PTY) LTD | 316 | |
| COMPANY PROFILES - RETAILERS OF LAPTOPS, DESKTOPS AND PERIPHERALS | 319 | |
| CHM VUWANI COMPUTER SOLUTIONS (PTY) LTD | 319 | |
| EVETECH (PTY) LTD | 322 | |
| JD GROUP LTD | 323 | |
| LENOVO (SOUTH AFRICA) (PTY) LTD | 329 | |
| LG ELECTRONICS SA (PTY) LTD | 331 | |
| REBEL TECH CC | 333 | |
| WOOTWARE COMPUTERS CC | 334 |
