The IT Industry in South Africa 2017
Price
R 1 900.00(ZAR) estimated $ 120.50 (USD)*
Report Coverage
The detailed South African Information Technology Sector report provides statistics and ratings for the local industry, describes current conditions and discusses the factors that include the success of the sector. Business Connexion (BCX) Group Ltd, formerly known as Telkom Business Connexion, is one of the 119 companies profiled in the report. Since its re-branding in February 2017, the company has announced the sale of its ICT training solutions subsidiary Netcampus and entered into a partnership with GE aimed at providing digital technological solutions to the agri-processing sector. Also profiled is 4Sight Group, the first pure technology company to list on the JSE’s AltX in 18 years. The group was formed after the acquisition of digital services company Digitata Mauritius in June 2017. In October 2017 it acquired 100% of the shares in BluESP Holdings and its wholly-owned subsidiary BluESP (Pty) Ltd, and shortly afterwards in December it acquired AGE Technologies JHB Pty Ltd.
The South African Information Technology Sector
The Information Technology (IT) sector is highly competitive and operates in a rapidly changing landscape with new technologies posing both an opportunity and a threat. The South African IT sector, with an estimated annual market value of R270bn for 2017, or 6% of GDP, is expected to grow at 4% for 2017, down from 5% in 2016.
A Sector Impacted by Slow Economic Growth
Although the country moved out of recession in Q2:2017, showing a GDP growth of 2.5% followed by growth of 3.3% in Q3, slow economic growth has already led to a cut in spending on IT products, services and training. The current economic climate and the volatility of the Rand also reduce the finance available for start-ups and mean that imported hardware and software has become more expensive. Poor economic growth, high unemployment and increasing household expenses also influence the household disposable income available to spend on consumer electronics.
Table of Contents
| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Value Chain | 3 |
| 2.2. | Geographic Position | 5 |
| 3. | SIZE OF THE INDUSTRY | 6 |
| 4. | STATE OF THE INDUSTRY | 19 |
| 4.1. | Local | 19 |
| 4.1.1. | Corporate Actions | 26 |
| 4.1.2. | Regulations | 35 |
| 4.1.3. | Enterprise Development and Social Economic Development | 41 |
| 4.2. | Continental | 45 |
| 4.3. | International | 49 |
| 5. | INFLUENCING FACTORS | 56 |
| 5.1. | Economic Environment | 56 |
| 5.2. | Strong IT Investment in the Education Sector | 57 |
| 5.3. | ICT SMME Development Strategy | 59 |
| 5.4. | “Smart Provinces” and “Smart Cities” | 60 |
| 5.5. | Technology, Research and Development (R&D) and Innovation | 63 |
| 5.6. | Labour | 66 |
| 5.7. | Cybersecurity and Crime | 71 |
| 5.8. | Environmental Issues | 73 |
| 5.9. | Cyclicality | 75 |
| 6. | COMPETITION | 75 |
| 6.1. | Barriers to Entry | 76 |
| 7. | SWOT ANALYSIS | 77 |
| 8. | OUTLOOK | 78 |
| 9. | INDUSTRY ASSOCIATIONS | 78 |
| 10. | REFERENCES | 80 |
| 10.1. | Publications | 80 |
| 10.2. | Websites | 81 |
| APPENDIX 1 | 83 | |
| SMME Hardware Manufacturers, Hardware Suppliers and e-Waste Refurbishers | 83 | |
| APPENDIX 2 | 87 | |
| Salaries of IT professionals working in small and large companies in South Africa | 87 | |
| COMPANY PROFILES - COMPUTER & RELATED ACTIVITIES | 89 | |
| 4SIGHT HOLDINGS LTD | 89 | |
| ACCENTURE (SOUTH AFRICA) (PTY) LTD | 91 | |
| ACI GLOBAL LTD | 93 | |
| ADAPTIT HOLDINGS LTD | 95 | |
| AFRIHOST (PTY) LTD | 98 | |
| ALLIED ELECTRONICS CORPORATION LTD | 100 | |
| ALVIVA HOLDINGS LTD | 104 | |
| AOLC ON-LINE (PTY) LTD | 108 | |
| ATTACHMATE GROUP SOUTH AFRICA (PTY) LTD | 109 | |
| AXIZ (PTY) LTD | 111 | |
| AYO TECHNOLOGY SOLUTIONS LTD | 113 | |
| BARONE BUDGE AND DOMINICK (PTY) LTD | 115 | |
| BIDVEST OFFICE (PTY) LTD | 117 | |
| BLUE LABEL TELECOMS LTD | 121 | |
| BUSINESS CONNEXION (PTY) LTD | 125 | |
| CASH CONNECT MANAGEMENT SOLUTIONS (PTY) LTD | 129 | |
| CASH PAYMASTER SERVICES (PTY) LTD | 131 | |
| CCI TECHNOLOGY SOLUTIONS (PTY) LTD | 133 | |
| CHM VUWANI COMPUTER SOLUTIONS (PTY) LTD | 135 | |
| CISCO SYSTEMS (SOUTH AFRICA) (PTY) LTD | 138 | |
| CONTINUITYSA (PTY) LTD | 139 | |
| DADDY'S DEALS (PTY) LTD | 142 | |
| DATATEC LTD | 143 | |
| DIMENSION DATA (PTY) LTD | 146 | |
| DIRECT TRANSACT (PTY) LTD | 149 | |
| DOCUMENT WAREHOUSE (PTY) LTD (THE) | 151 | |
| EASYPAY (PTY) LTD | 154 | |
| ECENTRIC PAYMENT SYSTEMS (PTY) LTD | 156 | |
| ENTERPRISE ELECTRONIC COMMERCE (SA) (PTY) LTD | 158 | |
| EOH HOLDINGS LTD | 160 | |
| FACE TECHNOLOGIES (PTY) LTD | 164 | |
| FARANANI IT SERVICES (PTY) LTD | 166 | |
| FLASH MOBILE VENDING (PTY) LTD | 168 | |
| FUJITSU SERVICES (PTY) LTD | 171 | |
| GIJIMA GROUP LTD | 173 | |
| HETZNER (PTY) LTD | 177 | |
| HEWLETT-PACKARD SOUTH AFRICA (PTY) LTD | 179 | |
| IBM SOUTH AFRICA (PTY) LTD | 181 | |
| INCREDIBLE SOLUTIONS (S A) (PTY) LTD | 184 | |
| INTEGR8 IT (PTY) LTD | 186 | |
| INTEL SOUTH AFRICA CORPORATION | 188 | |
| IRON MOUNTAIN SOUTH AFRICA (PTY) LTD | 190 | |
| IRON MOUNTAIN SOUTH AFRICA INFORMATION MANAGEMENT (PTY) LTD | 192 | |
| IRON MOUNTAIN SOUTH AFRICA RECORDS MANAGEMENT (PTY) LTD | 194 | |
| IT-DYNAMICS (PTY) LTD | 196 | |
| ITEC SA (PTY) LTD | 198 | |
| KID ZONE (PTY) LTD (THE) | 200 | |
| LIGHTSTONE CONSUMER (PTY) LTD | 201 | |
| LOOT ONLINE (PTY) LTD | 203 | |
| M I B TECHNOLOGY (PTY) LTD | 205 | |
| MARINE DATA SOLUTIONS (PTY) LTD | 207 | |
| MEDIKREDIT INTEGRATED HEALTHCARE SOLUTIONS (PTY) LTD | 209 | |
| METROFILE HOLDINGS LTD | 211 | |
| MICROSOFT (S A) (PTY) LTD | 215 | |
| MONDIAL IT SOLUTIONS (PTY) LTD | 218 | |
| MORVEST GROUP (PTY) LTD | 220 | |
| MUSTEK LTD | 223 | |
| OLTIO (PTY) LTD | 227 | |
| ONEDAYONLY OFFERS (PTY) LTD | 229 | |
| ORACLE CORPORATION (SOUTH AFRICA) (PTY) LTD | 230 | |
| PARACON SA (PTY) LTD | 232 | |
| PAYCORP CORPORATE SERVICES (PTY) LTD | 234 | |
| PAYCORP GROUP (PTY) LTD | 236 | |
| PBT GROUP LTD | 238 | |
| PRISM PAYMENT TECHNOLOGIES (PTY) LTD | 241 | |
| QCK LEZMIN 4648 CC | 243 | |
| REBEL TECH CC | 244 | |
| RICOH SOUTH AFRICA (PTY) LTD | 245 | |
| SAGE SOUTH AFRICA (PTY) LTD | 247 | |
| SAS INSTITUTE (PTY) LTD | 249 | |
| SETCOM (PTY) LTD | 251 | |
| SIAE MICROELETTRONICA (SOUTH AFRICA) (PTY) LTD | 253 | |
| SIEMENS (PTY) LTD | 255 | |
| SILKWOOD TRADING 18 (PTY) LTD | 259 | |
| SOUTH AFRICAN BANKERS SERVICES COMPANY (PTY) LTD | 260 | |
| SPARK ATM SYSTEMS (PTY) LTD | 263 | |
| STATE INFORMATION TECHNOLOGY AGENCY SOC LTD | 265 | |
| STELLAR CAPITAL PARTNERS LTD | 268 | |
| SYSTEMS APPLICATIONS PRODUCTS (SOUTH AFRICA) (PTY) LTD | 272 | |
| T-SYSTEMS SOUTH AFRICA (PTY) LTD | 275 | |
| TAKEALOT ONLINE (RF) (PTY) LTD | 277 | |
| TERACO DATA ENVIRONMENTS (PTY) LTD | 280 | |
| TRANSACTION CONTROL TECHNOLOGIES (SA) (PTY) LTD | 282 | |
| TRILLOBATE MARKETING (PTY) LTD | 284 | |
| TRUSTLINK (PTY) LTD | 285 | |
| UCS SOLUTIONS (PTY) LTD | 287 | |
| UNILEVER SOUTH AFRICA (PTY) LTD | 289 | |
| VERIFONE AFRICA (PTY) LTD | 292 | |
| VOUCHERCLOUD SA (PTY) LTD | 294 | |
| VSOLUTION (PTY) LTD | 295 | |
| WIZZIT PAYMENTS (PTY) LTD | 297 | |
| COMPANY PROFILES - WHOLESALE AND RETAIL OF LAPTOPS, DESKTOPS AND PERIPHERALS | 299 | |
| ACER AFRICA (PTY) LTD | 299 | |
| ALVIVA HOLDINGS LTD | 301 | |
| AOLC ON-LINE (PTY) LTD | 305 | |
| ASUSTEK COMPUTER INC | 306 | |
| AXIZ (PTY) LTD | 311 | |
| BIDVEST OFFICE (PTY) LTD | 313 | |
| CHM VUWANI COMPUTER SOLUTIONS (PTY) LTD | 317 | |
| DELL COMPUTER (PTY) LTD | 320 | |
| ESQUIRE SYSTEM TECHNOLOGY (PTY) LTD | 322 | |
| EVETECH (PTY) LTD | 324 | |
| FUJITSU SERVICES CORE (PTY) LTD | 325 | |
| HISENSE SA SALES HOLDINGS (PTY) LTD | 326 | |
| HUAWEI TECHNOLOGIES AFRICA (PTY) LTD | 328 | |
| INCREDIBLE SOLUTIONS (S A) (PTY) LTD | 330 | |
| INTEL SOUTH AFRICA CORPORATION | 332 | |
| ITEC SA (PTY) LTD | 334 | |
| JD GROUP (PTY) LTD | 336 | |
| LENOVO (SOUTH AFRICA) (PTY) LTD | 339 | |
| LG ELECTRONICS SA (PTY) LTD | 341 | |
| MICROSOFT (S A) (PTY) LTD | 343 | |
| MUSTEK LTD | 346 | |
| ORACLE CORPORATION (SOUTH AFRICA) (PTY) LTD | 350 | |
| RICOH SOUTH AFRICA (PTY) LTD | 352 | |
| SAHARA COMPUTERS (PTY) LTD | 354 | |
| SAMSUNG ELECTRONICS SOUTH AFRICA (PTY) LTD | 355 | |
| TARSUS DISTRIBUTION (PTY) LTD | 357 | |
| WOOTWARE COMPUTERS (PTY) LTD | 360 |
