Who Owns Whom

The IT Industry in South Africa 2022

Liz Kneale | South Africa | 30 April 2022

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R 13 500.00(ZAR) estimated $ 859.21 (USD)*

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Report Coverage

This report focuses on the IT industry, including hardware manufacturing, assembly, and supply; software development and supply; and retail sales of hardware and software. It includes information on the size of the sector, rankings, spending forecasts and estimates, notable players and their performance, corporate actions, regulation, influencing factors and trends. There are profiles of 105 companies, including major software and hardware companies such as AdaptIT, Business Connexion, Dell and IBM, ecommerce companies such as Africa Online and Takealot, transaction technology companies such as Mastercard and MediKredit and companies that have come under scrutiny such as Ayo and EOH.

The IT Industry in South Africa

The pandemic has given an enormous boost to digital transformation, and the IT industry. Supply chain issues, chip shortages, an upsurge in cybercrime, and the July riots all had a major impact on South African companies and the way they work. The IT sector is expecting the increasing access to broadband and fibre and the release of spectrum to drive digital transformation in the country. Ratings of South Africa’s IT industry compared to top global performers on network readiness to optimise the use of ICTs, the relationship between ICT infrastructure investment and economic growth and digital competitiveness show that South Africa’s rankings are low compared to global economies and the highest on the African continent.

Trends

The adoption of hybrid work models and most leaders of large companies in South Africa expect to adopt a more hybrid way of working permanently. The pandemic created greater impetus for digitalisation uptake, which allows companies to use their data more effectively to gain better insight and thus become more competitive. Key drivers in the sector include artificial intelligence, cloud computing, big data analytics, 5G and the internet of things.

Cybersecurity and Crime

The move to remote work has exposed many security risks, and it is estimated that the global average cost of a data breach increased by 10% year-on-year in 2021. In South Africa there have been a number of attacks such as on Transnet Port Terminals, which brought ports and railways to a standstill. Ransomware attacks are the top cyberthreat for the year ahead, followed by business interruptions.

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 4
2.2. Geographic Position 6
2.3. Size of the Industry 7
2.4. Key Success Factors and Pain Points 10
3. LOCAL 11
3.1. Key Trends 11
3.2. Notable Players 21
3.3. Trade 24
3.4. Corporate Actions 26
3.5. Regulations 34
3.6. Enterprise Development and Social Economic Development 38
4. AFRICA 41
5. INTERNATIONAL 46
6. INFLUENCING FACTORS 54
6.1. COVID-19 54
6.2. Economic Environment 55
6.3. Labour 57
6.4. IT-Related Government Initiatives 63
6.5. Governance and Procurement Issues 69
6.6. Technology, Research and Development (R&D) and Innovation 71
6.7. Cybersecurity and Crime 73
6.8. Environmental Issues 75
6.9. Electricity Supply Constraints 77
6.10. Cyclicality 78
7. COMPETITIVE ENVIRONMENT 78
7.1. Competition 78
7.2. Ownership Structure of the Industry 80
7.3. Barriers to Entry 80
8. SWOT ANALYSIS 81
9. OUTLOOK 82
10. INDUSTRY ASSOCIATIONS 83
11. REFERENCES 85
11.1. Publications 85
11.2. Websites 87
APPENDICES 88
Appendix 1 -Summary of Notable Players 88
Computer and Related Activities 88
Wholesale and Retail of Laptops, Desktops and Peripherals 96
Appendix 2 - SME Hardware Manufacturers, Hardware Suppliers, and e-Waste Refurbishers 99
Appendix 3 - IT-related Projects and Initiatives on the African Continent 101
Appendix 4 - 20 Highest Paid Positions at South Africa’s Multinational IT Companies and equivalent salaries at small to medium local enterprises 106
COMPANY PROFILES - COMPUTER AND RELATED ACTIVITIES 107
4Sight Holdings Ltd 107
Accenture (South Africa) (Pty) Ltd 110
Accsys (Pty) Ltd 112
ACI Global Ltd 114
Active Track (Pty) Ltd 116
AdaptIT Holdings Ltd 118
Adcorp Workforce Solutions (Pty) Ltd 122
Africa Online Retail (Pty) Ltd 127
Afrihost SP (Pty) Ltd 129
Altron Ltd 131
Alviva Holdings Ltd 136
AOLC (Pty) Ltd 141
AYO Technology Solutions Ltd 143
B D Silks CC 146
Barone Budge and Dominick (Pty) Ltd 148
Bidvest Office (Pty) Ltd 150
Blue Label Telecoms Ltd 153
Business Connexion (Pty) Ltd 158
Cash Connect Management Solutions (Pty) Ltd 161
CCI Technology Solutions (Pty) Ltd 163
CHM Vuwani Computer Solutions (Pty) Ltd 165
Cisco Systems (South Africa) (Pty) Ltd 168
Cocre8 IT Services (Pty) Ltd 170
ContinuitySA (Pty) Ltd 172
Daddy's Deals (Pty) Ltd 175
Datacentrix (Pty) Ltd 177
Datatec Ltd 179
Dimension Data (Pty) Ltd 183
Direct Transact (Pty) Ltd 185
Document Warehouse (Pty) Ltd (The) 187
EasyPay (Pty) Ltd 190
Ecentric Payment Systems (Pty) Ltd 192
EOH Holdings Ltd 194
ERS Biometrics (Pty) Ltd 199
Faranani IT Services (Pty) Ltd 201
Flash Mobile Vending (Pty) Ltd 203
Gijima Group Ltd 206
Hewlett-Packard South Africa (Pty) Ltd 210
IBM South Africa (Pty) Ltd 212
Intel South Africa Corporation 214
International Time and Access Technologies CC 216
Iron Mountain South Africa (Pty) Ltd 218
Iron Mountain South Africa Information Management (Pty) Ltd 220
Iron Mountain South Africa Records Management (Pty) Ltd 222
IT-Dynamics (Pty) Ltd 224
ITEC SA (Pty) Ltd 226
Lightstone Consumer (Pty) Ltd 228
Mastercard Southern Africa (Pty) Ltd 229
MediKredit Integrated Healthcare Solutions (Pty) Ltd 231
Metrofile Holdings Ltd 233
Micro Focus Software South Africa (Pty) Ltd 238
Microsoft (S A) (Pty) Ltd 240
Morvest Group (Pty) Ltd 245
Mustek Ltd 248
Naspers Ltd 252
Net1 Applied Technologies South Africa (Pty) Ltd 256
Nomad Information Systems (Pty) Ltd 258
Onedayonly Offers (Pty) Ltd 260
Oracle Corporation (South Africa) (Pty) Ltd 262
Pay-Day Software Systems (Pty) Ltd 264
Paycorp Group (Pty) Ltd 266
PBT Group Ltd 268
Prism Payment Technologies (Pty) Ltd 271
QCK Lezmin 4648 CC 273
Ricoh South Africa (Pty) Ltd 274
Sage South Africa (Pty) Ltd 276
SAS Institute (Pty) Ltd 278
SBE International SA (Pty) Ltd 280
Setcom (Pty) Ltd 281
Siemens (Pty) Ltd 283
Silkwood Trading 18 (Pty) Ltd 287
Sirius Sales (Pty) Ltd 289
South African Bankers Services Company (Pty) Ltd 291
Spark ATM Systems (Pty) Ltd 294
State Information Technology Agency SOC Ltd 296
Stellar Capital Partners (Pty) Ltd 300
Systems Africa CC 303
Systems Applications Products (South Africa) (Pty) Ltd 305
T-Systems South Africa (Pty) Ltd 308
Takealot Online (RF) (Pty) Ltd 310
Teraco Data Environments (Pty) Ltd 315
Time and Attendance Solutions (Pty) Ltd 318
Time Attendance and Access Control CC 319
Toppan FaceTech (Pty) Ltd 321
Trac Tech (Pty) Ltd 324
Transaction Control Technologies (SA) (Pty) Ltd 326
Trillobate Marketing (Pty) Ltd 328
Trustlink (Pty) Ltd 330
Verifone Africa (Pty) Ltd 332
Virdi Distribution SA (Pty) Ltd 334
Visio Pix (Pty) Ltd 336
Wizzit Payments (Pty) Ltd 338
Xneelo (Pty) Ltd 340
COMPANY PROFILES - WHOLESALE AND RETAIL OF LAPTOPS, DESKTOPS AND PERIPHERALS 342
Acer Africa (Pty) Ltd 342
Alviva Holdings Ltd 344
AOLC (Pty) Ltd 348
ASUSTek Computer Inc 350
Bidvest Office (Pty) Ltd 354
CHM Vuwani Computer Solutions (Pty) Ltd 357
CoCre8 Technology Solutions (Pty) Ltd 360
Dell Computer (Pty) Ltd 362
Esquire System Technology (Pty) Ltd 364
Hisense SA Sales Holdings (Pty) Ltd 366
Huawei Technologies Africa (Pty) Ltd 368
Intel South Africa Corporation 370
ITEC SA (Pty) Ltd 372
JD Consumer Electronics and Appliances (Pty) Ltd 374
Lenovo (South Africa) (Pty) Ltd 376
LG Electronics S A (Pty) Ltd 378
Microsoft (S A) (Pty) Ltd 380
Mustek Ltd 385
Oracle Corporation (South Africa) (Pty) Ltd 389
Ricoh South Africa (Pty) Ltd 391
Samsung Electronics South Africa (Pty) Ltd 393
Tarsus Distribution (Pty) Ltd 395