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The IT Industry in South Africa 2026

Michael Felton | South Africa | 31 January 2026

The IT Industry in South Africa 2024

Gary Phillips | South Africa | 27 November 2024

The IT Industry in South Africa 2024

Stephen Timm | South Africa | 16 January 2024

The IT Industry in South Africa 2022

Liz Kneale | South Africa | 30 April 2022

The IT Industry in South Africa 2020

Liz Kneale | South Africa | 11 September 2020

The IT Industry in South Africa 2019

Liz Kneale | South Africa | 17 April 2019

The IT Industry in South Africa 2017

Liz Kneale | South Africa | 11 December 2017

The IT Industry in South Africa 2016

Liz Kneale | South Africa | 29 September 2016

The IT Industry in South Africa 2015

Liz Kneale | South Africa | 25 May 2015

Report Coverage

This report on the IT industry in South Africa provides comprehensive information on the sector, including networking and connectivity, digital platforms and services, hardware and software, cybersecurity, data management, AI, online retail and fintech. It provides information on revenue, , number of companies and employees, public sector IT, infrastructure development, notable players, corporate actions and various influencing factors such as internet access. There are profiles of 85 global and local companies in the industry including Microsoft, Oracle, SAP, Datatec, Adapt IT, iOCO, BCX and Mustek.

Introduction

• South Africa’s IT industry is developed and diverse and plays an important role as a regional hub for digital services, cloud computing, fintech, data centres and IT outsourcing.
• The sector supports productivity and competitiveness across the wider economy.
• Industry revenue grew by about 10% in 2025.
• Growth is mainly driven by ongoing cloud adoption, increased cybersecurity spending, the expansion of fintech and digital transformation.
• There is a strong mix of global and local companies, a growing startup ecosystem and rising foreign investment in cloud and data centre infrastructure.
• Challenges include skills shortages, energy constraints and regulatory complexity.

Trends

• Accelerated adoption of AI, machine learning and data-driven services.
• Adoption of digital twin technology in conjunction with IoT.
• Demand for cybersecurity, data protection and compliance/regulatory-ready IT.
• Digital skills development.
• Expanding data centre and local digital infrastructure and data storage.
• Expansion of remote and hybrid work technologies.
• Focus on creating a sustainable and eco-friendly IT sector.
• Growth of fintech, digital platforms and digital-first business models.
• Increased investment in 5G networks.
• Increased IoT, edge computing and sector-specific digitalisation.
• Increasing number of IT professionals working for themselves
• Increasing use of blockchain technology.
• Increasing venture capital and startup activity.
• Mobile-first development and demand optimised mobile device software.
• Rapid rise of cloud computing, SaaS, IaaS, PaaS and multi-cloud adoption.

Opportunities

• AI and data analytics services.
• Business process outsourcing, fintech, digital platforms and ecommerce.
• Cloud computing and managed cloud services.
• Cross-border and pan-African IT expansion.
• Cybersecurity services.
• Emerging and specialised roles for IoT, digital marketing, green tech and digital twin developers.
• Government and public-sector digitalisation.
• High demand for cybersecurity, AI, machine learning, cloud computing and software development skills.
• Industry-specific digital solutions.
• Intelligent connectivity solutions using 5G and IoT.
• Renewable energy and green IT.
• Skills development and edtech.
• SME digital enablement.

Challenges

• Ageing national broadband infrastructure.
• Competition from global players.
• Critical IT skills shortage.
• Delayed digital migration and spectrum reallocation.
• Digital divide and unequal access.
• Digital infrastructure gaps and insufficient data centre capacity.
• Hardware market pressures.
• High connectivity, hardware and cloud costs.
• High costs of data centres.
• Increasing cybersecurity threats.
• Power constraints and rising operational costs.
• Public sector IT mismanagement and corruption.
• Regulatory and compliance complexity and inconsistent policy execution.
• Slow adoption of AI, cloud and automation in some sectors.
• Slow pace of digital government.

Outlook

• Strong growth is projected on the back of accelerated digital transformation and global investment.
• Revenue is expected to grow at a CAGR of over 10% to 2030.
• Key growth drivers include cloud computing and platform services, AI and automation, cybersecurity, ecommerce, financial services and government initiatives.
• The sector is benefiting from strong investment by global and local companies.
• Persistent challenges include severe skills shortages, energy constraints that raise operational costs, a digital divide, and economic pressures that dampen business investment in IT projects.

The IT Industry in South Africa 2026

Full Report

R 20 000.00(ZAR) estimated $1253.45 (USD)*

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Industry Landscape

R 14 000.00(ZAR) estimated $ 877.42 (USD)*

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Industry Organogram

R 450.00(ZAR) estimated $ 28.20 (USD)*

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Historical Reports

The IT Industry in South Africa 2024-11-27

R 9 500.00(ZAR) estimated $595.39 (USD)*

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The IT Industry in South Africa 2024-01-16

R 6 500.00(ZAR) estimated $407.37 (USD)*

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The IT Industry in South Africa 2022-04-30

R 1 900.00(ZAR) estimated $119.08 (USD)*

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The IT Industry in South Africa 2020-09-11

R 1 900.00(ZAR) estimated $119.08 (USD)*

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The IT Industry in South Africa 2019-04-17

R 1 900.00(ZAR) estimated $119.08 (USD)*

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The IT Industry in South Africa 2017-12-11

R 1 900.00(ZAR) estimated $119.08 (USD)*

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The IT Industry in South Africa 2016-09-29

R 1 900.00(ZAR) estimated $119.08 (USD)*

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The IT Industry in South Africa 2015-05-25

R 1 900.00(ZAR) estimated $119.08 (USD)*

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		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Value Chain	3
2.2.	Geographic Position	5
2.3.	Size of the Industry	7
3.	LOCAL	17
3.1.	State of the Industry	17
3.2.	Key Trends	27
3.3.	Key Issues	28
3.4.	Notable Players	28
3.5.	Trade	30
3.6.	Corporate Actions	34
3.7.	Regulations	38
3.8.	Enterprise Development and Social Development	42
4.	AFRICA	45
5.	INTERNATIONAL	55
6.	INFLUENCING FACTORS	63
6.1.	Unforeseen Events	63
6.2.	Economic Environment	63
6.3.	Labour	65
6.4.	Environmental Issues	68
6.5.	Technology, R&D and Innovation	69
6.6.	Government Support	70
6.7.	Government IT Spend	72
6.8.	Input Costs	73
7.	COMPETITIVE ENVIRONMENT	74
7.1.	Competition	74
7.2.	Ownership Structure of the Industry	75
7.3.	Barriers to Entry	76
8.	INDUSTRY SUMMARY	77
9.	OUTLOOK	78
10.	INDUSTRY ASSOCIATIONS	78
11.	REFERENCES	79
11.1.	Publications	79
11.2.	Websites	82
	ANNEXURE 1	84
	Industry Legislation and Regulations	84
	APPENDIX 1	92
	Summary of Notable Players	92
	COMPANY PROFILES	102
4SIGHT HOLDINGS LTD		102
	ACCENTURE (SOUTH AFRICA) (PTY) LTD	106
	ACER AFRICA (PTY) LTD	109
	ACI GLOBAL (BRANCH OF ACI GLOBAL LTD)	111
	ACTIVE TRACK (PTY) LTD	113
	ADAPTIT HOLDINGS (PTY) LTD	115
	ADCORP HOLDINGS LTD	119
	AFRIHOST SP (PTY) LTD	123
	ALTRON LTD	125
	ALVIVA HOLDINGS (PTY) LTD	129
	AOLC (PTY) LTD	133
	ARAXI LTD	135
	ASUSTEK COMPUTERS (PTY) LTD	139
	AYO TECHNOLOGY SOLUTIONS LTD	140
	B D SILKS CC	143
	BARONE BUDGE AND DOMINICK (PTY) LTD	145
	BIDVEST OFFICE (PTY) LTD	147
	BLU LABEL UNLIMITED GROUP LTD	150
	BUSINESS CONNEXION (PTY) LTD	154
	CCI TECHNOLOGY SOLUTIONS (PTY) LTD	157
	CHM VUWANI COMPUTER SOLUTIONS (PTY) LTD	159
	COCRE8 IT SERVICES (PTY) LTD	161
	COCRE8 TECHNOLOGY SOLUTIONS (PTY) LTD	163
	DATACENTRIX (PTY) LTD	165
	DATATEC LTD	167
	DELL COMPUTER (PTY) LTD	171
	DOCUMENT WAREHOUSE (PTY) LTD (THE)	173
	ECENTRIC PAYMENT SYSTEMS (PTY) LTD	175
	ENTELECT SOFTWARE (PTY) LTD	177
	ERS BIOMETRICS (PTY) LTD	179
	ESQUIRE SYSTEM TECHNOLOGY (PTY) LTD	181
	GIJIMA GROUP LTD	183
	HEWLETT-PACKARD SOUTH AFRICA (PTY) LTD	187
	HISENSE SA SALES HOLDINGS (PTY) LTD	189
	HUAWEI TECHNOLOGIES AFRICA (PTY) LTD	191
	IBM SOUTH AFRICA (PTY) LTD	193
	INTEL SOUTH AFRICA CORPORATION	195
	INTERNATIONAL TIME AND ACCESS TECHNOLOGIES CC	197
	IOCO LTD	199
	IRON MOUNTAIN SOUTH AFRICA (PTY) LTD	203
	IRON MOUNTAIN SOUTH AFRICA RECORDS MANAGEMENT (PTY) LTD	205
	IT-DYNAMICS (PTY) LTD	207
	ITEC SA (PTY) LTD	209
	LENOVO (SOUTH AFRICA) (PTY) LTD	211
	LG ELECTRONICS S A (PTY) LTD	213
	LIGHTSTONE (PTY) LTD	215
	METROFILE HOLDINGS (RF) LTD	217
	MICROSOFT (S A) (PTY) LTD	221
	MORVEST GROUP (PTY) LTD	225
	MUSTEK LTD	229
	NOMAD INFORMATION SYSTEMS (PTY) LTD	234
	NTT DATA SOUTH AFRICA (PTY) LTD	236
	OPEN TEXT SOUTH AFRICA (PTY) LTD	239
	ORACLE CORPORATION (SOUTH AFRICA) (PTY) LTD	240
	PAY-DAY SOFTWARE SYSTEMS (PTY) LTD	242
	PEPKOR TRADING (PTY) LTD	244
	Q LINK HOLDINGS (RF) (PTY) LTD	248
	RICOH SOUTH AFRICA (PTY) LTD	250
	SAGE SOUTH AFRICA (PTY) LTD	252
	SAMSUNG ELECTRONICS SOUTH AFRICA (PTY) LTD	254
	SIEMENS (PTY) LTD	256
	STATE INFORMATION TECHNOLOGY AGENCY SOC LTD	260
	SYSTEMS APPLICATIONS PRODUCTS (SOUTH AFRICA) (PTY) LTD	264
	TARSUS DISTRIBUTION (PTY) LTD	267
	TERACO DATA ENVIRONMENTS (PTY) LTD	269
	TIME AND ATTENDANCE SOLUTIONS (PTY) LTD	272
	VERIFONE AFRICA (PTY) LTD	273
	WIZZIT DIGITAL SA (PTY) LTD	275
		0
		0

Report Coverage

This report on the IT industry in South Africa includes comprehensive information on hardware, software, cloud computing, fintech, data management, cybersecurity, distributed ledger technology, autonomous IT systems and AI. There is information on the size and state of the industry, transaction technology, data platforms, online retail, retail technology and public sector IT. The report includes notable players, corporate actions, regulatory developments and influencing factors such as environmental issues like electricity consumption and e-waste. There are profiles of 84 companies including Microsoft, IBM, Intel, Acer, EOH and AdaptIT.

Introduction

• South Africa has a well-developed, internationally-competitive IT industry.
• Following a spike in hardware and software demand during the pandemic, the industry has faced four years of disruptions and a poor economy.
• IT hardware has been hit the hardest.
• There has been strong growth in cloud computing and software consulting and development.
• South Africa’s emergence as the top performing business process outsourcing destination in Africa supported growth, as did the development of fintech.
• The deployment of AI is boosting innovation and growth, and is set to continue to bring significant change to the industry.

Trends

• AI is being applied to most IT services, with the expectation of enormous benefits to economies.
• Cloud computing has led to IT increasingly being sold on a subscription basis, particularly SaaS, IaaS, and PaaS.
• Cloud computing has reduced capital requirements for digitisation and lowered barriers to IT adoption for smaller companies.
• Cloud services investment has developed to include that of onshore data centres.
• Strong growth, especially for cloud services, data centre investment, IT services and business process outsourcing.
• There is slow and steady adoption of fintech, digital payment options, digital platforms, and online retail.

Opportunities

• Application of AI to IT.
• Data centres.
• Digital platforms.
• Fintech.
• Online retail.
• Outsourced IT and business processing.

Challenges

• Affordability.
• Cybersecurity.
• Internet connectivity is limited to mobile devices.
• IT infrastructure needs to develop quicker.
• Lack of skills.
• Low growth, high interest rates, high inflation, insecure power supply, and political instability.
• South Africa’s internet speeds are low by international standards.
• The migration to cloud services is becoming increasingly complex and expensive.

Outlook

• The IT industry is set for growth, driven by cloud computing, the localisation of data centres, fintech, a competitive IT services and business process outsourcing sector, and AI.
• Industry growth will be driven by software.
• The industry includes large companies with international reach, a strong and dynamic startup community, and the expanding presence of core technology providers.
• Growth may be affected by the lack of critical skills and slow pace of policy and regulatory development.

The IT Industry in South Africa 2024

Full Report

R 9 500.00(ZAR) estimated $595.39 (USD)*

Buy Now +

Industry Landscape

R 6 650.00(ZAR) estimated $ 416.77 (USD)*

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Historical Reports

The IT Industry in South Africa 2026-01-31

R 20 000.00(ZAR) estimated $1253.45 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2024-01-16

R 6 500.00(ZAR) estimated $407.37 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2022-04-30

R 1 900.00(ZAR) estimated $119.08 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2020-09-11

R 1 900.00(ZAR) estimated $119.08 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2019-04-17

R 1 900.00(ZAR) estimated $119.08 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2017-12-11

R 1 900.00(ZAR) estimated $119.08 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2016-09-29

R 1 900.00(ZAR) estimated $119.08 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2015-05-25

R 1 900.00(ZAR) estimated $119.08 (USD)*

View Report Add to Cart

[ Close ]

		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Value Chain	3
2.2.	Geographic Position	5
2.3.	Size of the Industry	5
3.	LOCAL	12
3.1.	State of the Industry	12
3.2.	Key Trends	22
3.3.	Key Issues	22
3.4.	Notable Players	23
3.5.	Trade	26
3.6.	Corporate Actions	33
3.7.	Regulations	36
3.8.	Enterprise Development and Social Development	38
4.	AFRICA	39
5.	INTERNATIONAL	42
6.	INFLUENCING FACTORS	47
6.1.	Unforeseen Events	47
6.2.	Economic Environment	47
6.3.	Labour	48
6.4.	Environmental Issues	50
6.5.	Technology, R&D, Innovation	51
6.6.	Government Support	52
6.7.	Government IT Spend	52
7.	COMPETITIVE ENVIRONMENT	53
7.1.	Competition	53
7.2.	Ownership Structure of the Industry	55
7.3.	Barriers to Entry	56
8.	INDUSTRY SUMMARY	56
9.	OUTLOOK	57
10.	INDUSTRY ASSOCIATIONS	57
11.	REFERENCES	58
11.1.	Publications	58
11.2.	Websites	59
	ANNEXURE 1	60
	List of Relevant Legislation	60
	APPENDIX 1	72
	Summary of Notable Players	72
	COMPANY PROFILES	83
	4SIGHT HOLDINGS LTD	83
	ACCENTURE (SOUTH AFRICA) (PTY) LTD	86
	ACER AFRICA (PTY) LTD	88
	ACI GLOBAL (BRANCH OF ACI GLOBAL LTD)	90
	ACTIVE TRACK (PTY) LTD	92
	ADAPTIT HOLDINGS (PTY) LTD	93
	ADCORP HOLDINGS LTD	96
	AFRICA ONLINE RETAIL (PTY) LTD	100
	AFRIHOST SP (PTY) LTD	101
	ALTRON LTD	102
	ALVIVA HOLDINGS (PTY) LTD	105
	AOLC (PTY) LTD	108
	ASUSTEK COMPUTERS (PTY) LTD	109
	AYO TECHNOLOGY SOLUTIONS LTD	110
	B D SILKS CC	112
	BARONE BUDGE AND DOMINICK (PTY) LTD	113
	BIDVEST OFFICE (PTY) LTD	115
	BLUE LABEL TELECOMS LTD	117
	BUSINESS CONNEXION (PTY) LTD	121
	CAPITAL APPRECIATION LTD	123
	CASH CONNECT MANAGEMENT SOLUTIONS (PTY) LTD	126
	CCI TECHNOLOGY SOLUTIONS (PTY) LTD	128
	CHM VUWANI COMPUTER SOLUTIONS (PTY) LTD	130
	COCRE8 IT SERVICES (PTY) LTD	132
	COCRE8 TECHNOLOGY SOLUTIONS (PTY) LTD	134
	DADDY'S DEALS (PTY) LTD	136
	DATACENTRIX (PTY) LTD	137
	DATATEC LTD	139
	DELL COMPUTER (PTY) LTD	142
	DIMENSION DATA (PTY) LTD	144
	DIRECT TRANSACT (PTY) LTD	146
	DOCUMENT WAREHOUSE (PTY) LTD (THE)	148
	EASYPAY (PTY) LTD	150
	ECENTRIC PAYMENT SYSTEMS (PTY) LTD	152
	ENTELECT SOFTWARE (PTY) LTD	154
	EOH HOLDINGS LTD	155
	ERS BIOMETRICS (PTY) LTD	158
	ESQUIRE SYSTEM TECHNOLOGY (PTY) LTD	160
	FLASH MOBILE VENDING (PTY) LTD	162
	GIJIMA GROUP LTD	164
	HEWLETT-PACKARD SOUTH AFRICA (PTY) LTD	167
	HISENSE SA SALES HOLDINGS (PTY) LTD	168
	HUAWEI TECHNOLOGIES AFRICA (PTY) LTD	169
	IBM SOUTH AFRICA (PTY) LTD	171
	INTEL SOUTH AFRICA CORPORATION	173
	INTERNATIONAL TIME AND ACCESS TECHNOLOGIES CC	175
	IRON MOUNTAIN SOUTH AFRICA (PTY) LTD	176
	IRON MOUNTAIN SOUTH AFRICA RECORDS MANAGEMENT (PTY) LTD	178
	IT-DYNAMICS (PTY) LTD	179
	ITEC SA (PTY) LTD	180
	LENOVO (SOUTH AFRICA) (PTY) LTD	181
	LESAKA TECHNOLOGIES (PTY) LTD	183
	LG ELECTRONICS S A (PTY) LTD	185
	LIGHTSTONE (PTY) LTD	186
	MASTERCARD SOUTHERN AFRICA (PTY) LTD	187
	METROFILE HOLDINGS LTD	188
	MICROSOFT (S A) (PTY) LTD	191
	MORVEST GROUP (PTY) LTD	195
	MUSTEK LTD	198
	NASPERS LTD	202
	NOMAD INFORMATION SYSTEMS (PTY) LTD	205
	ONEDAYONLY OFFERS (PTY) LTD	206
	OPEN TEXT SOUTH AFRICA (PTY) LTD	207
	ORACLE CORPORATION (SOUTH AFRICA) (PTY) LTD	208
	PAY-DAY SOFTWARE SYSTEMS (PTY) LTD	210
	PAYCORP GROUP (PTY) LTD	212
	PAYFAST (PTY) LTD	214
	PEPKOR TRADING (PTY) LTD	215
	PRISM PAYMENT TECHNOLOGIES (PTY) LTD	218
	Q LINK HOLDINGS (RF) (PTY) LTD	219
	RICOH SOUTH AFRICA (PTY) LTD	221
	SAGE SOUTH AFRICA (PTY) LTD	223
	SAMSUNG ELECTRONICS SOUTH AFRICA (PTY) LTD	225
	SIEMENS (PTY) LTD	227
	SOUTH AFRICAN BANKERS SERVICES COMPANY (PTY) LTD	230
	SPARK ATM SYSTEMS (PTY) LTD	232
	STATE INFORMATION TECHNOLOGY AGENCY SOC LTD	233
	SYSTEMS APPLICATIONS PRODUCTS (SOUTH AFRICA) (PTY) LTD	236
	TAKEALOT ONLINE (RF) (PTY) LTD	238
	TARSUS DISTRIBUTION (PTY) LTD	243
	TERACO DATA ENVIRONMENTS (PTY) LTD	245
	TIME AND ATTENDANCE SOLUTIONS (PTY) LTD	247
	TRUSTLINK (PTY) LTD	248
	VERIFONE AFRICA (PTY) LTD	249
	WIZZIT DIGITAL SA (PTY) LTD	251

Report Coverage

This report focuses on the information technology (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, state and economic contribution of the industry and trends including digital transformation, cloud computing, fintech, ecommerce and cybersecurity. It includes information on corporate actions, trade, government’s procurement and IT spend, corruption and competition issues. There are profiles of 102 companies including notable players such as Adapt It, Altron, 4Sight Holdings, Datatec, Mustek, and EOH, major international players such as Microsoft, IBM and Dell and retailers such as Takealot. Local cloud service providers include Synthesis, BlueSky (which provides cloud consultancy services for Salesforce), AWS, Tableau, and Alteryx products, and Obsidian.

Introduction

• While the burst of growth in the IT sector during the pandemic has dissipated, demand for software and hardware products is expected to remain strong.
• Demand will be driven by digital transformation at companies and the adoption of technologies such as artificial intelligence and the internet of things, which require stronger computing power.
• Loadshedding has had positive and negative effects on the IT industry as it has led to a surge in demand for inverters, solar panels, and batteries, but affected the rollout of data centres, which are energy intensive.
• Other challenges include the global shortage of IT skills, delays in state ICT initiatives and IT projects and a slowdown of venture capital funding to startups, all of which have put a brake on IT spending.

Trends

• Demand is growing for the use of big data, robotics, cloud computing, IoT and AI solutions.
• Emerging technologies drive demand for innovative solutions and digital transformation services.
• Financial regulation and security concerns drive demand for compliant and secure financial transactions.
• Hybrid remote and office work.
• Increasing interest in green technology or more efficient IT hardware.
• Increasing risk of cybercrime drives demand for secure IT solutions.
• IT workloads are shifting to the cloud, and large IT companies are managing clients’ shift to the cloud.
• There is growing demand for fintech solutions driven by the growth in ecommerce and the adoption of mobile technology.

Opportunities

• Cloud computing value-added services.
• Demand for cybersecurity products.
• Development of smart cities and provinces and a large number of e-services such as e-learning, e-payments, e-governance, and e-commerce.
• Ecommerce
• Fintech products and solutions.
• Green technology or more efficient IT hardware.
• Tech products and solutions developed by innovative techs startups.
• The digital transformation trend is fuelling growth for IT products and services.

Challenges

• Delayed implementation of vital projects such as digital migration and SA Connect and development of appropriate policies and regulations.
• Extreme shortage of professional skills to offer existing services and keep pace with new developments, resulting in a reliance on external and imported skills.
• Fallout from IT company involvement in procurement irregularities.
• Government’s fiscal challenges have led to delays in some IT projects.
• Hardware retailers have been negatively affected by ports delays.
• High cost of importing ICT hardware, software, and services due to exchange rate.
• Loadshedding.
• Network and ICT readiness are not as high as they should be.
• Reliance on imported products.
• Security threats from increasing cybercrime and a lack of associated skills.
• The slowing economy, which reduces IT spending by companies and the government.

Outlook

• Demand for software and hardware products is expected to remain strong.
• This includes demand for digital transformation solutions as businesses use technology and innovation to re-invent and improve their operations.
• Growth will also come from cybersecurity services, local service providers offering value-added cloud computing services, and the development of fintech services.

The IT Industry in South Africa 2024

Full Report

R 6 500.00(ZAR) estimated $407.37 (USD)*

Buy Now +

Industry Landscape

R 4 550.00(ZAR) estimated $ 285.16 (USD)*

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Historical Reports

The IT Industry in South Africa 2026-01-31

R 20 000.00(ZAR) estimated $1253.45 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2024-11-27

R 9 500.00(ZAR) estimated $595.39 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2022-04-30

R 1 900.00(ZAR) estimated $119.08 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2020-09-11

R 1 900.00(ZAR) estimated $119.08 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2019-04-17

R 1 900.00(ZAR) estimated $119.08 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2017-12-11

R 1 900.00(ZAR) estimated $119.08 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2016-09-29

R 1 900.00(ZAR) estimated $119.08 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2015-05-25

R 1 900.00(ZAR) estimated $119.08 (USD)*

View Report Add to Cart

[ Close ]

		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1	Industry Value Chain	2
2.2	Geographic Position	4
2.3	Size of the Industry	5
3	LOCAL	6
3.1	State of the Industry	6
3.2	Key Trends	16
3.3	Key Issues	16
3.4	Notable Players	17
3.5	Trade	19
3.6	Corporate Actions	22
3.7	Regulations	27
3.8	Enterprise Development and Social Development	29
4	AFRICA	31
5	INTERNATIONAL	35
6	INFLUENCING FACTORS	38
6.1	Economic Environment	38
6.2	Labour	39
6.3	Environmental Issues	43
6.4	Technology, R&D, Innovation	44
6.5	Government Procurement	47
6.6	Cybersecurity	49
6.7	Loadshedding	51
6.8	Corruption	52
6.9	Rising Inputs	53
7	COMPETITIVE ENVIRONMENT	53
7.1	Competition	53
7.2	Ownership Structure of the Industry	54
7.3	Barriers to Entry	56
8	INDUSTRY SUMMARY	56
9	OUTLOOK	58
10	INDUSTRY ASSOCIATIONS	58
11	. REFERENCES	59
11.1	Publications	59
11.2	Websites	60
	APPENDIX 1 - Computer and Related Activities	62
	APPENDIX 2 - Wholesale and Retail of Laptops, Desktops and Peripherals	71
	COMPANY PROFILES - Computer and Related Activities	75
	4Sight Holdings Ltd	75
	Accenture (South Africa) (Pty) Ltd	78
	Accsys (Pty) Ltd	81
	ACI Global Ltd	83
	Active Track (Pty) Ltd	85
	AdaptIT Holdings (Pty) Ltd	87
	Adcorp Workforce Solutions (Pty) Ltd	91
	Africa Online Retail (Pty) Ltd	96
	Afrihost SP (Pty) Ltd	98
	Altron Ltd	100
	Alviva Holdings (Pty) Ltd	104
	AOLC (Pty) Ltd	108
	AYO Technology Solutions Ltd	110
	B D Silks CC	113
	Barone Budge and Dominick (Pty) Ltd	115
	Bidvest Office (Pty) Ltd	117
	Blue Label Telecoms Ltd	120
	Business Connexion (Pty) Ltd	125
	Capital Appreciation Ltd	128
	Cash Connect Management Solutions (Pty) Ltd	133
	CCI Technology Solutions (Pty) Ltd	135
	CHM Vuwani Computer Solutions (Pty) Ltd	137
	Cocre8 IT Services (Pty) Ltd	139
	Daddy's Deals (Pty) Ltd	141
	Datacentrix (Pty) Ltd	143
	Datatec Ltd	145
	Dimension Data (Pty) Ltd	149
	Direct Transact (Pty) Ltd	151
	Document Warehouse (Pty) Ltd (The)	153
	EasyPay (Pty) Ltd	156
	Ecentric Payment Systems (Pty) Ltd	158
	EOH Holdings Ltd	160
	ERS Biometrics (Pty) Ltd	165
	Faranani IT Services (Pty) Ltd	167
	Flash Mobile Vending (Pty) Ltd	169
	Gijima Group Ltd	171
	Hewlett-Packard South Africa (Pty) Ltd	175
	IBM South Africa (Pty) Ltd	177
	Intel South Africa Corporation	179
	International Time and Access Technologies CC	181
	Iron Mountain South Africa (Pty) Ltd	182
	Iron Mountain South Africa Information Management (Pty) Ltd	184
	Iron Mountain South Africa Records Management (Pty) Ltd	186
	IT-Dynamics (Pty) Ltd	188
	ITEC SA (Pty) Ltd	190
	Lesaka Technologies (Pty) Ltd	192
	Lightstone Consumer (Pty) Ltd	194
	Mastercard Southern Africa (Pty) Ltd	196
	MediKredit Integrated Healthcare Solutions (Pty) Ltd	197
	Metrofile Holdings Ltd	199
	Micro Focus Software South Africa (Pty) Ltd	204
	Microsoft (S A) (Pty) Ltd	206
	Morvest Group (Pty) Ltd	211
	Mustek Ltd	214
	Naspers Ltd	219
	Nomad Information Systems (Pty) Ltd	223
	Onedayonly Offers (Pty) Ltd	224
	Oracle Corporation (South Africa) (Pty) Ltd	225
	Pay-Day Software Systems (Pty) Ltd	227
	Paycorp Group (Pty) Ltd	229
	PBSA (Pty) Ltd	231
	PBT Group Ltd	233
	Prism Payment Technologies (Pty) Ltd	236
	QCK Lezmin 4648 CC	238
	Ricoh South Africa (Pty) Ltd	239
	Sage South Africa (Pty) Ltd	241
	SAS Institute (Pty) Ltd	243
	SBE International SA (Pty) Ltd	245
	Sentri Systems CC	246
	Setcom (Pty) Ltd	247
	Siemens (Pty) Ltd	249
	Silkwood Trading 18 (Pty) Ltd	253
	Sirius Sales (Pty) Ltd	254
	Solar and Security Nerd (Pty) Ltd	256
	South African Bankers Services Company (Pty) Ltd	258
	Spark ATM Systems (Pty) Ltd	261
	State Information Technology Agency SOC Ltd	263
	Systems Africa (Pty) Ltd	267
	Systems Applications Products (South Africa) (Pty) Ltd	268
	T-Systems South Africa (Pty) Ltd	271
	Takealot Online (RF) (Pty) Ltd	273
	Teraco Data Environments (Pty) Ltd	278
	Time and Attendance Solutions (Pty) Ltd	281
	Toppan Gravity (Pty) Ltd	282
	Trac Tech (Pty) Ltd	284
	Transaction Control Technologies (SA) (Pty) Ltd	286
	Trustlink (Pty) Ltd	288
	Verifone Africa (Pty) Ltd	290
	Virdi Distribution SA (Pty) Ltd	292
	Wizzit Digital SA (Pty) Ltd	294
	Xneelo (Pty) Ltd	296
	COMPANY PROFILES - Wholesale and Retail of Laptops, Desktops and Peripherals	298
	Acer Africa (Pty) Ltd	298
	Alviva Holdings (Pty) Ltd	300
	AOLC (Pty) Ltd	304
	ASUSTek Computer Inc	306
	Bidvest Office (Pty) Ltd	310
	CHM Vuwani Computer Solutions (Pty) Ltd	313
	CoCre8 Technology Solutions (Pty) Ltd	315
	Dell Computer (Pty) Ltd	317
	Esquire System Technology (Pty) Ltd	319
	Hisense SA Sales Holdings (Pty) Ltd	321
	Huawei Technologies Africa (Pty) Ltd	323
	Intel South Africa Corporation	325
	ITEC SA (Pty) Ltd	327
	JD Consumer Electronics and Appliances (Pty) Ltd	329
	Lenovo (South Africa) (Pty) Ltd	331
	LG Electronics S A (Pty) Ltd	333
	Microsoft (S A) (Pty) Ltd	335
	Mustek Ltd	340
	Oracle Corporation (South Africa) (Pty) Ltd	345
	Ricoh South Africa (Pty) Ltd	347
	Samsung Electronics South Africa (Pty) Ltd	349
	Tarsus Distribution (Pty) Ltd	351

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.

Introduction

This report focuses on the IT industry, including hardware manufacturing, assembly, and supply; software development and supply; and retail sales of hardware and software. In spite of its considerable downsides, the COVID-19 pandemic has given an enormous boost to digital transformation in many sectors. According to the Department of Communications and Digital Technologies, digital transformation in South Africa is affecting all levels of society including individual citizens, government, big and small businesses. The changes permeate almost every industry and every facet of life such as health, education, safety and security, social services, environment and climate change. The pandemic wasn’t the only challenge South Africans lived through in 2021: 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. It is too early to determine what effect the Russian invasion of Ukraine will have on the South African economy and ICT sector, especially in terms of cybersecurity and supply chains.

Strengths

• Ability to deliver solutions to meet local needs.
• Large number of mergers, acquisitions and partnerships to increase competition, services and expand markets.
• Strong entrepreneurial and startup initiatives.
• Strong presence of established South African and multinational companies that introduce the latest technology.
• Supports the operations and facilitates the efficiency of other sectors.
• The globalised nature of the broader ICT industry enables South Africa to acquire, develop, adapt, implement and support the latest technologies.
• The South African IT sector is generally robust, has access to the latest technologies and methodologies and underpins the operations of most other sectors of the economy.

Weaknesses

• As a service industry, the growth of the sector is dependent on client demand which slows during economic downturns and government austerity efforts.
• Extreme shortage of professional skills to offer existing services and keep pace with new developments, resulting in a reliance on external and imported skills.
• Fallout from IT company involvement in procurement irregularities.
• High cost of importing ICT hardware, software and services due to exchange rate.
• Network and ICT readiness are not as high as they should be.
• Reliance on imported products.

Opportunities

• Ongoing technological developments.
• Development of smart cities and provinces and a large number of e-services such as e-learning, e-payments, e-governance and e-commerce.
• Development of software packages to meet local needs.
• ICT SME development strategies to unlock business opportunities and create an enabling business and administrative environment for SMEs in the sector.
• Increased demand for IT products and services to accommodate lockdown restrictions such as remote working, ecommerce, e-learning and e-banking.
• Strong growth forecasts for online shopping.
• Strong growth in African countries can provide new markets.

Threats

• Strict requirements and legal responsibilities covering the protection of personal information in existing and proposed legislation.
• Delayed implementation of vital projects such as digital migration and SA Connect and development of appropriate policies and regulations.
• Disruptive technologies and trends such as smart mobility and cloud computing are changing the face of the industry and could pose a threat if the skills shortage continues.
• ICT spend by the public and private sectors and consumers is affected by the weak economic situation and the pandemic.
• Security threats from increasing cybercrime and a lack of associated skills.
• The revised ICT sector code sets the minimum prescribed equity to be held by black people at 30% compared to 25% in the country’s generic code.
• Unreliable power supply and high electricity tariff increases affect the IT value chain, including users.

Outlook

Gartner forecasts that worldwide IT spending will increase by 5.1% year-on-year to US$4.5tn in 2022, and by 5% to US$4.5tn in 2023. The International Data Corporation’s earlier predictions expected global ICT spending to slow from over 7% growth in 2021 to just under 5% in 2022. In March 2022, it said Russia’s invasion of Ukraine would slow 2022 global ICT spending, with growth ranging from 2% if there is a prolonged war to just over 4% if the conflict is resolved within three months. Ahmed Mahomed, CEO of Datacentrix believes that “the ICT industry is in a robust position both locally and at a global level. Technology has allowed organisations to continue to flourish, despite COVID-related challenges, and as long as we continue to focus on understanding business requirements and applying technology to meet these requirements, the sector will remain strong. In today’s fast-paced world, companies need to stay relevant and prioritise innovation to survive. Because of this, it is becoming increasingly important for businesses to prioritise innovation.” According to Danielle Barber, senior manager, digital advisory at Dimension Data, “seismic changes like the pandemic have accelerated the digital transformation of the workforce and organisations have needed to shift to being people-led and technology run. We need to have the systems, processes, people and attitudes in place, ready for this change that requires a new mindset from employees and leadership alike. As a key part of this change, organisations need to look at how they enable, equip and empower their workforce to overcome challenges and make the most of opportunities, both now and in the future.” Tim Minahan, executive vice president at digital workspace solutions provider, Citrix said we can expect that companies will go virtual, the digital workspace will become the new office, employees will decide on their workplace preferences and a new class of jobs will emerge. “One thing is clear: work has changed forever, and there’s no going back.” The Google/International Finance Corporation report e-Conomy Africa 2020, states that “the African internet economy is one of the largest overlooked investment opportunities of the past decade with potential for profound impact on development. The mobile internet is transforming life across the continent with the support of growing local connectivity and mobility and a dynamic, young urban population.”

The IT Industry in South Africa 2022

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The IT Industry in South Africa 2026-01-31

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The IT Industry in South Africa 2024-11-27

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The IT Industry in South Africa 2024-01-16

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The IT Industry in South Africa 2020-09-11

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The IT Industry in South Africa 2019-04-17

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The IT Industry in South Africa 2017-12-11

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The IT Industry in South Africa 2016-09-29

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The IT Industry in South Africa 2015-05-25

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		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

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. The report includes comprehensive information on the state and size of the sector, corporate action in South Africa and on the continent, private sector and government initiatives relating to online and technology-driven learning and e-commerce during lockdown and research and development. There are profiles of 108 companies including local divisions of international players such as Intel, IBM and Cisco, major homegrown companies such as Dimension Data, Datatec and EOH and specialised companies such as Spark ATM Systems and Lumbro Time Systems.

Introduction

This report focuses on the IT industry, including hardware manufacturing, assembly, and supply; software development and supply; and retail sales of hardware and software. The IT landscape in South Africa is currently dominated by local GDP contraction and the global coronavirus pandemic. The economic situation and lockdown restrictions to control the spread of the virus have had an extensive impact on economic activity but, according to International Data Corporation’s associate vice-president sub-Saharan Africa Mark Walker, “the coronavirus pandemic has deeply underscored commercial and government reliance on ICT as an essential component of the economy and society at large. Most technical roles are still in demand and will likely remain so as dependency on ICT increases. The impact of the pandemic and the remote working and learning scenarios has accelerated the adoption and use of digital transformation technologies”. The availability of internet connectivity has helped to maintain business continuity, keep children in education, and ensure online access to essential goods and services. However, the pandemic has also exposed significant areas of digital inequality and exclusion in areas without internet access.

Strengths

Weaknesses

Opportunities

• Ongoing technological developments.
• Development of smart cities and provinces and the proliferation of e-services such as e-learning, e-payments, e-governance and e-commerce.
• Development of software packages to meet local needs.
• ICT SME development strategies to unlock business opportunities and create an enabling business and administrative environment for SMEs in the sector.
• Increased demand for IT products and services to accommodate lockdown restrictions such as remote working, e-commerce, e-learning and e-banking.
• Strong growth forecasts for online shopping.
• Strong growth in African countries can provide new markets.

Threats

• Strict requirements and legal responsibilities covering the protection of personal information in existing and proposed legislation.
• Delayed implementation of vital projects such as digital migration and SA Connect.
• Disruptive technologies and trends such as smart mobility and cloud computing are changing the face of the industry and could pose a threat if the skills shortage continues.
• ICT spend by the public and private sectors and consumers is affected by the coronavirus pandemic.
• Security threats from increasing cybercrime and a lack of associated skills.
• The revised ICT sector code sets the minimum prescribed equity to be held by black people to 30% compared to 25% in the country’s generic code.
• Unreliable power supply and high electricity tariff increases affect the IT value chain, including users.

Outlook

The International Telecommunications Union confirms that the significant impact of the coronavirus pandemic on economic activity and spending has forced a revision of global economic and IT growth forecasts. “Even so, we are witnessing that in the current conditions some businesses may become more critical to our lives and could face an increase in demand, such as the case of the ICT industry. Digital technologies have become a critical enabler of connectivity facilitating continuity of our regular lives and connecting people more than ever before. The ICT sector is benefitting from increased opportunities from telework, telemedicine, food delivery and logistics, online and contactless payments, remote learning and entertainment.” Stats SA forecasts that the full impact of the coronavirus on the economy will become evident in GDP data for the second and third quarters of 2020. Adrian Schofield, production consultant at the Institute of Information Technology Professionals South Africa said lockdowns have resulted in winners and losers in the local ICT sector – winners are the networks supporting the increased usage of digital communications by business or citizens. The losers are generally the small and medium businesses whose clients stopped operating, some of which will never re-open. “While the ICT sector is likely to be better off than others, due to the long-term demand for technology products, services and skills, full recovery will take three years or more as demand for tech products and services either remains low or may not be affordable, even when there is an increased need”.

The IT Industry in South Africa 2020

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Industry Landscape

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The IT Industry in South Africa 2026-01-31

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The IT Industry in South Africa 2024-11-27

R 9 500.00(ZAR) estimated $595.39 (USD)*

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The IT Industry in South Africa 2024-01-16

R 6 500.00(ZAR) estimated $407.37 (USD)*

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The IT Industry in South Africa 2022-04-30

R 1 900.00(ZAR) estimated $119.08 (USD)*

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The IT Industry in South Africa 2019-04-17

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The IT Industry in South Africa 2017-12-11

R 1 900.00(ZAR) estimated $119.08 (USD)*

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The IT Industry in South Africa 2016-09-29

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The IT Industry in South Africa 2015-05-25

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		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	6
4.1.	Local	6
4.1.1.	Corporate Actions	11
4.1.2.	Regulations	16
4.1.3.	Enterprise Development and Socio-Economic Development	20
4.2.	Continental	25
4.3.	International	37
5.	INFLUENCING FACTORS	45
5.1.	Economic Environment	45
5.2.	Coronavirus	47
5.3.	IT-Related Government Initiatives	49
5.4.	IT Investment in the Education Sector	52
5.4.1.	Government	52
5.4.2.	Private Sector	53
5.5.	E-Learning: Initiatives to Address the Impact of Coronavirus on the Education Sector	55
5.6.	Smart Provinces and Smart Cities	57
5.7.	Technology, Research and Development (R&D) and Innovation	60
5.8.	Labour	62
5.9.	Cybersecurity and Crime	67
5.10.	Environmental Concerns	69
5.11.	Cyclicality	71
5.12.	Electricity Supply Constraints	72
6.	COMPETITION	73
6.1.	Barriers to Entry	75
7.	SWOT ANALYSIS	75
8.	OUTLOOK	76
9.	INDUSTRY ASSOCIATIONS	77
10.	REFERENCES	79
10.1.	Publications	79
10.2.	Websites	80
	APPENDIX 1 – SUMMARY OF NOTABLE PLAYERS	82
	Computer and Related Activities	82
	Wholesale and Retail of Laptops, Desktops and Peripherals	89
	APPENDIX 2	93
	SMME Hardware Manufacturers, Hardware Suppliers and e-Waste Refurbishers	93
	APPENDIX 3	97
20 Highest Paid Positions at South Africa’s Multinational IT Companies		97
	COMPANY PROFILES - COMPUTER AND RELATED ACTIVITIES	98
4SIGHT HOLDINGS LTD		98
	ACCENTURE (SOUTH AFRICA) (PTY) LTD	101
	ACI GLOBAL LTD	103
	ACTIVE TRACK (PTY) LTD	105
	ADAPTIT HOLDINGS LTD	107
	AFRIHOST SP (PTY) LTD	111
	ALLIED ELECTRONICS CORPORATION LTD	113
	ALVIVA HOLDINGS LTD	118
	AOLC ON-LINE (PTY) LTD	122
	AYO TECHNOLOGY SOLUTIONS LTD	124
	B D SILKS CC	127
	BARONE BUDGE AND DOMINICK (PTY) LTD	129
	BIDVEST OFFICE (PTY) LTD	131
	BLUE LABEL TELECOMS LTD	134
	BUSINESS CONNEXION (PTY) LTD	139
	CASH CONNECT MANAGEMENT SOLUTIONS (PTY) LTD	142
	CCI TECHNOLOGY SOLUTIONS (PTY) LTD	144
	CHM VUWANI COMPUTER SOLUTIONS (PTY) LTD	146
	CISCO SYSTEMS (SOUTH AFRICA) (PTY) LTD	149
	COCRE8 IT SERVICES (PTY) LTD	151
	CONTINUITYSA (PTY) LTD	153
	DADDY'S DEALS (PTY) LTD	156
	DATATEC LTD	158
	DIMENSION DATA (PTY) LTD	161
	DIRECT TRANSACT (PTY) LTD	163
	DOCUMENT WAREHOUSE (PTY) LTD (THE)	165
	EASYPAY (PTY) LTD	168
	ECENTRIC PAYMENT SYSTEMS (PTY) LTD	170
	EOH HOLDINGS LTD	172
	ERS BIOMETRICS (PTY) LTD	177
	FACE TECHNOLOGIES (PTY) LTD	179
	FARANANI IT SERVICES (PTY) LTD	181
	FLASH MOBILE VENDING (PTY) LTD	183
	GIJIMA GROUP LTD	186
	HEWLETT-PACKARD SOUTH AFRICA (PTY) LTD	190
	IBM SOUTH AFRICA (PTY) LTD	192
	INTEL SOUTH AFRICA CORPORATION	194
	INTERNATIONAL TIME AND ACCESS TECHNOLOGIES CC	196
	IRON MOUNTAIN SOUTH AFRICA (PTY) LTD	197
	IRON MOUNTAIN SOUTH AFRICA INFORMATION MANAGEMENT (PTY) LTD	199
	IRON MOUNTAIN SOUTH AFRICA RECORDS MANAGEMENT (PTY) LTD	201
	IT-DYNAMICS (PTY) LTD	203
	ITEC SA (PTY) LTD	205
	KID ZONE (PTY) LTD (THE)	207
	LIGHTSTONE CONSUMER (PTY) LTD	209
	LOOT ONLINE (PTY) LTD	211
	LUMBRO TIME SYSTEMS CC	213
	MASTERCARD SOUTHERN AFRICA (PTY) LTD	214
	MEDIKREDIT INTEGRATED HEALTHCARE SOLUTIONS (PTY) LTD	216
	METROFILE HOLDINGS LTD	218
	MICRO FOCUS SOFTWARE SOUTH AFRICA (PTY) LTD	222
	MICROSOFT (S A) (PTY) LTD	224
	MONDIAL IT SOLUTIONS (PTY) LTD	229
	MORVEST GROUP (PTY) LTD	231
	MUSTEK LTD	234
	NOMAD INFORMATION SYSTEMS (PTY) LTD	238
	ONEDAYONLY OFFERS (PTY) LTD	239
	ORACLE CORPORATION (SOUTH AFRICA) (PTY) LTD	240
	PARACON SA (PTY) LTD	242
	PAY-DAY SOFTWARE SYSTEMS (PTY) LTD	244
	PAYCORP CORPORATE SERVICES (PTY) LTD	246
	PAYCORP GROUP (PTY) LTD	248
	PBT GROUP LTD	250
	PRISM PAYMENT TECHNOLOGIES (PTY) LTD	253
	QCK LEZMIN 4648 CC	255
	RICOH SOUTH AFRICA (PTY) LTD	256
	SAGE SOUTH AFRICA (PTY) LTD	258
	SAS INSTITUTE (PTY) LTD	260
	SBE INTERNATIONAL SA (PTY) LTD	262
	SETCOM (PTY) LTD	264
	SIEMENS (PTY) LTD	266
	SILKWOOD TRADING 18 (PTY) LTD	270
	SOUTH AFRICAN BANKERS SERVICES COMPANY (PTY) LTD	272
	SPARK ATM SYSTEMS (PTY) LTD	275
	STATE INFORMATION TECHNOLOGY AGENCY SOC LTD	277
	STELLAR CAPITAL PARTNERS LTD	281
	SYSTEMS AFRICA CC	284
	SYSTEMS APPLICATIONS PRODUCTS (SOUTH AFRICA) (PTY) LTD	285
	T-SYSTEMS SOUTH AFRICA (PTY) LTD	288
	TAKEALOT ONLINE (RF) (PTY) LTD	290
	TERACO DATA ENVIRONMENTS (PTY) LTD	294
	TIME AND ATTENDANCE SOLUTIONS (PTY) LTD	296
	TIME ATTENDANCE AND ACCESS CONTROL CC	297
	TRAC TECH (PTY) LTD	298
	TRANSACTION CONTROL TECHNOLOGIES (SA) (PTY) LTD	299
	TRILLOBATE MARKETING (PTY) LTD	301
	TRUSTLINK (PTY) LTD	303
	UNILEVER SOUTH AFRICA (PTY) LTD	305
	VERIFONE AFRICA (PTY) LTD	308
	VIRDI DISTRIBUTION SA (PTY) LTD	310
	VISIO PIX (PTY) LTD	312
	VSOLUTION (PTY) LTD	313
	WIZZIT PAYMENTS (PTY) LTD	315
	XNEELO (PTY) LTD	317
	COMPANY PROFILES - WHOLESALE AND RETAIL OF LAPTOPS, DESKTOPS AND PERIPHERALS	319
	ACER AFRICA (PTY) LTD	319
	ALVIVA HOLDINGS LTD	321
	AOLC ON-LINE (PTY) LTD	325
	ASUSTEK COMPUTER INC	327
	BIDVEST OFFICE (PTY) LTD	331
	CHM VUWANI COMPUTER SOLUTIONS (PTY) LTD	334
	COCRE8 TECHNOLOGY SOLUTIONS (PTY) LTD	337
	DELL COMPUTER (PTY) LTD	339
	ESQUIRE SYSTEM TECHNOLOGY (PTY) LTD	341
	EVETECH (PTY) LTD	343
	HISENSE SA SALES HOLDINGS (PTY) LTD	345
	HUAWEI TECHNOLOGIES AFRICA (PTY) LTD	347
	INTEL SOUTH AFRICA CORPORATION	349
	ITEC SA (PTY) LTD	351
	JD CONSUMER ELECTRONICS AND APPLIANCES (PTY) LTD	353
	LENOVO (SOUTH AFRICA) (PTY) LTD	355
	LG ELECTRONICS S A (PTY) LTD	357
	MICROSOFT (S A) (PTY) LTD	359
	MUSTEK LTD	364
	ORACLE CORPORATION (SOUTH AFRICA) (PTY) LTD	368
	RICOH SOUTH AFRICA (PTY) LTD	370
	SAMSUNG ELECTRONICS SOUTH AFRICA (PTY) LTD	372
	TARSUS DISTRIBUTION (PTY) LTD	374
	WOOTWARE COMPUTERS (PTY) LTD	376

Report Coverage

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.

Introduction

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. The IT landscape in South Africa is dominated by the government’s intention, in spite of weak economic growth and government’s cost-cutting measures, to introduce technologies associated with the Fourth Industrial Revolution. Global consulting company Accenture said that the implementation of key digital initiatives across government services and critical industry sectors could unlock R5-trillion in much-needed value for the economy. The South African IT sector’s market value was R300bn, or 6% of GDP, in 2018, with growth estimates ranging between 3.8% and 5% for 2019. IT spend is forecast to increase by 5.1% to R290.7bn in 2019, with global IT spend projected at US$3.8-trillion for the same period. Cybersecurity is a high priority which is not surprising as global statistics indicate that South Africa is the third most targeted country in the world for cyber-attacks. Employer participants in the 2018 ICT Skills Survey published by the Joburg Centre for Software Engineering and Institute of Information Technology Professionals ranked security/cybersecurity as the top skills-set priority for the third year in succession. The industry is somewhat tarnished by alleged IT-related procurement irregularities revealed through a number of commissions of inquiry and investigations.

Strengths

• Ability to deliver unique solutions to meet local needs.
• Clients are aware of the importance of IT to increase company efficiencies.
• Large number of mergers, acquisitions and partnerships to increase competition, service offerings and expand markets.
• Strong entrepreneurial and start-up initiatives.
• Strong presence of established South African and multi-national companies that introduce the latest technology.
• The globalised nature of the broader ICT industry enables South Africa to acquire, develop, adapt, implement and support the latest technologies.

Weaknesses

• As a service industry, the growth of the sector is dependent on client demand which slows during economic downturns and government’s cost-cutting efforts.
• Extreme shortage of professional skills to offer existing services and keep pace with new developments, resulting in a reliance on external and imported skills.
• Fallout from IT company involvement in procurement irregularities.
• High cost of importing equipment and software due to rand/dollar exchange rate.
• Network and ICT readiness are not as high as they should be.
• Reliance on imported products.

Opportunities

• Continuous new technological developments provide opportunities for growth.
• Development of smart cities and provinces and the proliferation of e-services such as e-learning, e-payments, e-governance and e-commerce provide opportunities for growth.
• Development of software packages to meet local needs is an opportunity for growth.
• Government focus on the development of a digital economy.
• ICT SMME Development Strategy to unlock the business opportunities and create an enabling business and administrative environment for SMMEs in the sector.
• Strong growth in African countries can provide new markets.
• Stronger growth forecasts for online shopping provide opportunities for growth in the sector as a whole.

Threats

• Strict requirements and legal responsibilities covering the protection of personal information in existing and proposed legislation. Protection of personal information legislation has altered the scope of data protection and management, especially with the increase in cybercrime, and compliance is non-negotiable with penalties including heavy fines and prison terms.
• Delayed implementation of vital projects such as digital migration and SA Connect restricts the growth of the sector.
• Disruptive technologies and transformational megatrends such as smart mobility and cloud computing are changing the face of the industry and could pose a threat if the skills shortage continues.
• Due to the country’s heavy reliance on ICT, unreliable power supply and high electricity tariff increases will affect the entire IT value chain, including users.
• minimum prescribed equity to be held by black people to 30% versus 25% in the country’s generic code.
• Security threats from increasing cybercrime accompanied by a serious lack of associated skills.
• The revised ICT sector code sets the

Outlook

The International Data Corporation believes that “business spending on ICT will be caught in the crossfire of headwinds and tailwinds over the next five years as a softening global economy puts pressure on the ability of organisations to increase technology budgets while at the same time their growth and competitiveness is increasingly dependent on digital transformation, artificial intelligence and data analytics. In the short term, the trade war between the US and China continues to add volatility to the outlook.” International Data Corporation’s Mark Walker emphasises that “competition is going to become incredibly intense over the next year. There must be a platform for collaboration in order to gain market share. The way technology is moving at the moment is that there is so much happening that very few companies can do end-to-end solutions. So, look for opportunities to collaborate and platforms that you can build on together. We are going to have to fight for every cent, there will be a lot of competition for market share and it's going to be a tough environment in South Africa for the next 12 months.” In his address to the International Telecommunication Union conference in September 2018 president Cyril Ramaphosa stated that “South Africa recently embarked on an investment drive to attract US$100bn in new investment in the country over the next five years. We are determined that the ICT sector be an integral part of this investment drive, with a focus on infrastructure investment, e-commerce, local manufacturing of equipment, and innovation.” The Accenture report on Unlocking Digital Value for Business and Society in South Africa to 2026 estimates that the implementation of key digital initiatives across government services and critical industry sectors could unlock R5-trillion in much needed value for industry, consumers and society in South Africa.

The IT Industry in South Africa 2019

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The IT Industry in South Africa 2026-01-31

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The IT Industry in South Africa 2024-11-27

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The IT Industry in South Africa 2024-01-16

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The IT Industry in South Africa 2022-04-30

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The IT Industry in South Africa 2020-09-11

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The IT Industry in South Africa 2017-12-11

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The IT Industry in South Africa 2016-09-29

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		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Value Chain	4
2.2.	Geographic Position	6
3.	SIZE OF THE INDUSTRY	7
4.	STATE OF THE INDUSTRY	8
4.1.	Local	8
4.1.1.	Corporate Actions	16
4.1.2.	Regulations	25
4.1.3.	Enterprise Development and Social Economic Development	28
4.2.	Continental	31
4.3.	International	42
5.	INFLUENCING FACTORS	49
5.1.	Economic Environment	49
5.2.	Strong IT Investment in the Education Sector	50
5.3.	Private Sector and Government Initiatives	53
5.4.	E-commerce	57
5.5.	“Smart Provinces” and “Smart Cities”	59
5.6.	Technology, Research and Development (R&D) and Innovation	65
5.7.	Labour	68
5.8.	Cybersecurity and Crime	73
5.9.	Environmental Issues	75
5.10.	Cyclicality	76
5.11.	Electricity Supply Constraints	77
6.	COMPETITION	78
6.1.	Barriers to Entry	80
7.	SWOT ANALYSIS	80
8.	OUTLOOK	82
9.	INDUSTRY ASSOCIATIONS	83
10.	REFERENCES	84
10.1.	Publications	84
10.2.	Websites	86
	APPENDIX 1 - Summary of Notable Players	88
	Computer and Related Activities	88
	Wholesale and Retail of Laptops, Desktops and Peripherals	97
	APPENDIX 2	101
	SMME Hardware Manufacturers, Hardware Suppliers and e-Waste Refurbishers	101
	APPENDIX 3	105
	Salaries of IT Professionals Working in Small and Large Companies in South Africa	105
	COMPANY PROFILES - COMPUTER & RELATED ACTIVITIES	106
4SIGHT HOLDINGS LTD		106
	ACCENTURE (SOUTH AFRICA) (PTY) LTD	109
	ACI GLOBAL LTD	111
	ACTIVE TRACK (PTY) LTD	113
	ADAPTIT HOLDINGS LTD	114
	AFRIHOST SP (PTY) LTD	118
	ALLIED ELECTRONICS CORPORATION LTD	120
	ALVIVA HOLDINGS LTD	125
	AOLC ON-LINE (PTY) LTD	129
	ATTACHMATE GROUP SOUTH AFRICA (PTY) LTD	131
	AXIZ (PTY) LTD	133
	AYO TECHNOLOGY SOLUTIONS LTD	135
	B D SILKS CC	138
	BARONE BUDGE AND DOMINICK (PTY) LTD	140
	BIDVEST OFFICE (PTY) LTD	142
	BLUE LABEL TELECOMS LTD	145
	BUSINESS CONNEXION (PTY) LTD	150
	CASH CONNECT MANAGEMENT SOLUTIONS (PTY) LTD	153
	CASH PAYMASTER SERVICES (PTY) LTD	155
	CCI TECHNOLOGY SOLUTIONS (PTY) LTD	158
	CHM VUWANI COMPUTER SOLUTIONS (PTY) LTD	160
	CISCO SYSTEMS (SOUTH AFRICA) (PTY) LTD	163
	CONTINUITYSA (PTY) LTD	164
	DADDY'S DEALS (PTY) LTD	167
	DATATEC LTD	168
	DIMENSION DATA (PTY) LTD	171
	DIRECT TRANSACT (PTY) LTD	174
	DOCUMENT WAREHOUSE (PTY) LTD (THE)	176
	EASYPAY (PTY) LTD	179
	ECENTRIC PAYMENT SYSTEMS (PTY) LTD	181
	EOH HOLDINGS LTD	183
	ERS BIOMETRICS (PTY) LTD	188
	FACE TECHNOLOGIES (PTY) LTD	190
	FARANANI IT SERVICES (PTY) LTD	192
	FLASH MOBILE VENDING (PTY) LTD	194
	FUJITSU SERVICES (PTY) LTD	197
	GIJIMA GROUP LTD	199
	HETZNER (PTY) LTD	203
	HEWLETT-PACKARD SOUTH AFRICA (PTY) LTD	205
	IBM SOUTH AFRICA (PTY) LTD	207
	INCREDIBLE SOLUTIONS (S A) (PTY) LTD	209
	INTEL SOUTH AFRICA CORPORATION	211
	INTERNATIONAL TIME AND ACCESS TECHNOLOGIES CC	213
	IRON MOUNTAIN SOUTH AFRICA (PTY) LTD	214
	IRON MOUNTAIN SOUTH AFRICA INFORMATION MANAGEMENT (PTY) LTD	216
	IRON MOUNTAIN SOUTH AFRICA RECORDS MANAGEMENT (PTY) LTD	218
	IT-DYNAMICS (PTY) LTD	220
	ITEC SA (PTY) LTD	222
	KID ZONE (PTY) LTD (THE)	224
	LIGHTSTONE CONSUMER (PTY) LTD	226
	LOOT ONLINE (PTY) LTD	228
	LUMBRO TIME SYSTEMS CC	230
	MEDIKREDIT INTEGRATED HEALTHCARE SOLUTIONS (PTY) LTD	231
	METROFILE HOLDINGS LTD	233
	MICROSOFT (S A) (PTY) LTD	237
	MONDIAL IT SOLUTIONS (PTY) LTD	242
	MORVEST GROUP (PTY) LTD	244
	MUSTEK LTD	247
	NOMAD INFORMATION SYSTEMS (PTY) LTD	251
	OLTIO (PTY) LTD	252
	ONEDAYONLY OFFERS (PTY) LTD	254
	ORACLE CORPORATION (SOUTH AFRICA) (PTY) LTD	255
	PARACON SA (PTY) LTD	257
	PAY-DAY SOFTWARE SYSTEMS (PTY) LTD	259
	PAYCORP CORPORATE SERVICES (PTY) LTD	260
	PAYCORP GROUP (PTY) LTD	262
	PBT GROUP LTD	264
	PRISM PAYMENT TECHNOLOGIES (PTY) LTD	267
	QCK LEZMIN 4648 CC	269
	REBEL TECH CC	270
	RICOH SOUTH AFRICA (PTY) LTD	271
	SAGE SOUTH AFRICA (PTY) LTD	273
	SAS INSTITUTE (PTY) LTD	275
	SBE INTERNATIONAL SA (PTY) LTD	277
	SETCOM (PTY) LTD	278
	SIEMENS (PTY) LTD	280
	SILKWOOD TRADING 18 (PTY) LTD	284
	SOUTH AFRICAN BANKERS SERVICES COMPANY (PTY) LTD	286
	SPARK ATM SYSTEMS (PTY) LTD	289
	STATE INFORMATION TECHNOLOGY AGENCY SOC LTD	291
	STELLAR CAPITAL PARTNERS LTD	295
	SYSTEMS AFRICA CC	299
	SYSTEMS APPLICATIONS PRODUCTS (SOUTH AFRICA) (PTY) LTD	300
	T-SYSTEMS SOUTH AFRICA (PTY) LTD	303
	TAKEALOT ONLINE (RF) (PTY) LTD	305
	TERACO DATA ENVIRONMENTS (PTY) LTD	308
	TIME AND ATTENDANCE SOLUTIONS (PTY) LTD	310
	TIME ATTENDANCE AND ACCESS CONTROL CC	311
	TRAC TECH (PTY) LTD	312
	TRANSACTION CONTROL TECHNOLOGIES (SA) (PTY) LTD	313
	TRILLOBATE MARKETING (PTY) LTD	315
	TRUSTLINK (PTY) LTD	316
	UNILEVER SOUTH AFRICA (PTY) LTD	318
	VERIFONE AFRICA (PTY) LTD	321
	VIRDI DISTRIBUTION SA (PTY) LTD	323
	VISIO PIX (PTY) LTD	324
	VSOLUTION (PTY) LTD	325
	WIZZIT PAYMENTS (PTY) LTD	327
	COMPANY PROFILES - WHOLESALE AND RETAIL OF LAPTOPS, DESKTOPS AND PERIPHERALS	329
	ACER AFRICA (PTY) LTD	329
	ALVIVA HOLDINGS LTD	331
	AOLC ON-LINE (PTY) LTD	335
	ASUSTEK COMPUTER INC	337
	AXIZ (PTY) LTD	340
	BIDVEST OFFICE (PTY) LTD	342
	CHM VUWANI COMPUTER SOLUTIONS (PTY) LTD	345
	DELL COMPUTER (PTY) LTD	348
	ESQUIRE SYSTEM TECHNOLOGY (PTY) LTD	350
	EVETECH (PTY) LTD	352
	FUJITSU SERVICES CORE (PTY) LTD	354
	HISENSE SA SALES HOLDINGS (PTY) LTD	355
	HUAWEI TECHNOLOGIES AFRICA (PTY) LTD	357
	INCREDIBLE SOLUTIONS (S A) (PTY) LTD	359
	INTEL SOUTH AFRICA CORPORATION	361
	ITEC SA (PTY) LTD	363
	JD GROUP (PTY) LTD	365
	LENOVO (SOUTH AFRICA) (PTY) LTD	368
	LG ELECTRONICS SA (PTY) LTD	370
	MICROSOFT (S A) (PTY) LTD	372
	MUSTEK LTD	377
	ORACLE CORPORATION (SOUTH AFRICA) (PTY) LTD	381
	RICOH SOUTH AFRICA (PTY) LTD	383
	SAMSUNG ELECTRONICS SOUTH AFRICA (PTY) LTD	385
	TARSUS DISTRIBUTION (PTY) LTD	387
	WOOTWARE COMPUTERS (PTY) LTD	389

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.

Introduction

Both the global and local Information Technology (IT) sectors are highly competitive and operate 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. Slow economic growth has resulted in restrained spending by existing customers, a lack of new customers and low demand for ICT skills. However, role players believe that the National Integrated ICT Policy White Paper and the ICT Small, Medium and Micro-sized Enterprises (SMME) Development Strategy, once implemented, should provide a boost to growth opportunities in the sector. 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.

Strengths

• Ability to deliver unique solutions to meet local needs.
• Clients are aware of the importance of IT to increase company efficiencies.
• Large number of mergers, acquisitions and partnerships to increase competition, service offerings and expand markets.
• Strong presence of established South African and multi-national companies that introduce the latest technology.
• The globalised nature of the broader ICT industry enables South Africa to acquire, develop, adapt, implement and support the latest technologies.

Weaknesses

• As a service industry, the growth of the sector is dependent on client demand which slows during economic downturns.
• Extreme shortage of professional skills to offer existing services and keep pace with new developments, resulting in a reliance on external and imported skills.
• High cost of importing equipment and software due to rand/dollar exchange rate.
• Lack of local R & D initiatives and reliance on imported products.
• Network and ICT readiness are not as high as they should be.

Opportunities

• Continuous new technological developments provide opportunities for growth.
• Development of smart cities and provinces and the proliferation of e-services such as e-learning, e-payments, e-governance and e-commerce provide opportunities for growth.
• Development of software packages to meet local needs is an opportunity for growth.
• ICT SMME Development Strategy that aims to unlock the business opportunities and create an enabling business and administrative environment for SMMEs in the sector.
• Strong growth in African countries can provide new markets.
• Stronger growth forecasts for online shopping provide opportunities for growth in the sector as a whole.

Threats

• Delayed implementation of vital projects such as digital migration and SA Connect restricts the growth of the sector.
• Disruptive technologies and transformational megatrends such as smart mobility and cloud computing are changing the face of the industry and could pose a threat if the skills shortage continues.
• Due to the country’s heavy reliance on ICT, high electricity tariff increases will affect the entire IT value chain, including users.
• Non-compliance with existing and proposed POPI legislation could result in penalties including heavy fines and prison terms.
• Security threats from increasing cybercrime accompanied by a serious lack of associated skills.

Outlook

The South African IT spend is forecast to increase by 3.4% to R275bn in 2018, with the global IT spend projected at US$3.7-trillion for the same period. Dimension Data’s publication on the Top IT predictions for 2018 emphasises that the enterprise IT landscape is changing fast. “New technologies, management models and practices are proliferating rapidly. These trends, that pose both a threat and an opportunity, are likely to have a huge impact on how businesses interact with customers, as well as how employees work.” At the same time IITPSA’s Adrian Schofield warns that new digital technology with increased internet access and demand for products and services to deliver knowledge and information electronically also increases opportunities for cybercrime. He believes that a concerted and collaborative effort is required by governments and the IT sector to protect technology users from this threat.

The IT Industry in South Africa 2017

Full Report

R 1 900.00(ZAR) estimated $119.08 (USD)*

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Industry Landscape

R 1 330.00(ZAR) estimated $ 83.35 (USD)*

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Historical Reports

The IT Industry in South Africa 2026-01-31

R 20 000.00(ZAR) estimated $1253.45 (USD)*

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The IT Industry in South Africa 2024-11-27

R 9 500.00(ZAR) estimated $595.39 (USD)*

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The IT Industry in South Africa 2024-01-16

R 6 500.00(ZAR) estimated $407.37 (USD)*

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The IT Industry in South Africa 2022-04-30

R 1 900.00(ZAR) estimated $119.08 (USD)*

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The IT Industry in South Africa 2020-09-11

R 1 900.00(ZAR) estimated $119.08 (USD)*

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The IT Industry in South Africa 2019-04-17

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The IT Industry in South Africa 2016-09-29

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The IT Industry in South Africa 2015-05-25

R 1 900.00(ZAR) estimated $119.08 (USD)*

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[ Close ]

		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

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.

Introduction

This report focuses on the Information Technology (IT) industry, which includes hardware manufacturing, assembly, consulting and supply; software development, consulting and supply; and retail sales of hardware and software. The Minister of Telecommunications and Postal Services states that IT not only “transforms how we live, how we do business, how we relate to each other and even how we play, but it has become an important enabler of economic development and social inclusion.” However, delays in the implementation of the National Integrated ICT Policy White Paper and vital projects such as digital migration and SA Connect are restricting not only the growth of the sector, but South Africa’s economic growth and social development. The growth of the South African IT industry is estimated at approximately 6% and Gartner Inc. projects IT spend for 2016 at R272bn, up by 3.8% from 2015.

Strengths

Weaknesses

Opportunities

• Anticipated growth driven by strong government support and initiatives to develop the IT industry and provide internet access to all.
• Continuous new technological developments provide opportunities for growth.
• Development of smart cities and provinces and the proliferation of e-services such as e-learning, e-payments, e-governance and e-commerce provide opportunities for growth.
• Development of software packages to meet local needs is an opportunity for growth.
• Initiatives around incentives, research and development capabilities, skills and innovation to facilitate SMME entry into the ICT sector.
• Strong growth in African countries can provide new markets.

Threats

• Delayed implementation of policies such as the National Integrated ICT Policy White Paper and vital projects such as digital migration and SA Connect restricts the growth of the sector.
• Disruptive technologies and transformational megatrends such as smart mobility and cloud computing are changing the face of the industry and could pose a threat if the skills shortage continues.
• Due to the country’s heavy reliance on ICT, unreliable electricity supply will not only affect IT services, but negatively affect the economy as a whole.
• Increased costs resulting from the strict requirements covering the protection of personal information in existing and proposed legislation.
• Security threats from increasing cybercrime.

Outlook

Deloitte’s 2016 report on The New Organisation: Different by Design confirms, “Digital technology is now everywhere, disrupting business models and radically changing the workplace and the way work is done. Technologies such as mobile devices, 3D printing, sensors, cognitive computing, and the Internet of Things are changing the way companies design, manufacture, and deliver almost every product and service, while digital disruption and social networking have changed the way organisations hire, manage, and support people.” Sebastian Isaac, Business Development Manager at Rectron, believes, “While we still have a way to go, South Africa is keeping up with global IT trends. As a country, we have a lot of innovation to offer and we have the potential to take giant leaps especially in the IoT space. Our challenge in the coming years is to ensure that we upskill and encourage people to be part of the IoT ecosystem and the IT sector in general. We also need to educate other sectors about the value that working in the cloud and using remote monitoring and management of data can add to business.”

The IT Industry in South Africa 2016

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Industry Landscape

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The IT Industry in South Africa 2026-01-31

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The IT Industry in South Africa 2024-11-27

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The IT Industry in South Africa 2024-01-16

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The IT Industry in South Africa 2022-04-30

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The IT Industry in South Africa 2020-09-11

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The IT Industry in South Africa 2019-04-17

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The IT Industry in South Africa 2017-12-11

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The IT Industry in South Africa 2015-05-25

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		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

Report Coverage

The report on the South African Information Technology sector describes the current market, lists corporate actions and other developments within the sector and focuses on factors influencing the success of the industry. The report also profiles 53 South African-based companies, ranging from Microsoft (SA) (Pty) Ltd which offers a back-up service to the American holding company, providing a service that includes the marketing of Microsoft computer products as well as providing technical support and training for end-users, to Dexani cc based in Centurion, which employs seven people involved in IT services including the retail of hardware and software as well as networking design and implementation for the corporate sector.

Introduction

Information Technology is an integral part of society because of its universal use across the economy and in society in general, and is an essential tool for enhancing access to information, education, finance, healthcare and other public services. At the same time its use creates jobs, protects the environment, mitigates natural disaster risks and ensures sustainable use of natural resources and food production. The IT industry in South Africa has an annual growth rate of 6% and employs almost 200,000 people. It contributes approximately 7% to GDP and IT spend for 2015 is projected at R143bn. This report focuses on the IT industry including consulting, software consulting and supply, data processing, database activities, maintenance and repair of office, accounting and computing machinery and other computer-related activities, but excludes hardware supply and rental.

Strengths

• Ability to deliver unique solutions to meet local needs.
• Clients are aware of the importance of IT to increase company efficiencies.
• Large number of mergers, acquisitions and partnerships to increase service offering and expand markets.
• Strong presence of established South African and multi-national companies that introduce the latest technology.

Weaknesses

• As a service industry, the growth of the sector is dependent on client demand which slows during economic downturns.
• Extreme shortage of professional skills to offer existing services and keep pace with new developments, resulting in a reliance on external skills.
• High cost of importing equipment and software due to rand/dollar exchange rate.
• Lack of local R & D initiatives and reliance on imported products.
• Network and ICT readiness are not as high as they should be.

Opportunities

Threats

• Disruptive technologies and transformational megatrends such as smart mobility and cloud computing are changing the face of the industry and could pose a threat if the skills shortage continues.
• Due to the country’s heavy reliance on ICT, unreliable electricity supply will not only affect IT services, but negatively affect the economy as a whole.
• Security threats from increasing cybercrime and the proliferation of smart mobile devices.
• Strict requirements covering the protection of personal information in existing and proposed legislation.

Outlook

The government’s initiatives to develop the IT industry through e-skills initiatives, internet access as well as the proliferation of e-services should provide a strong opportunity for growth, especially as they require public-private partnerships to succeed. However stakeholders have expressed concern at the slow implementation of government initiatives, such as the ICT policy, the broadband roll-out and digital migration, mainly as a result of leadership problems. Based on the proposed increased investment in the IT sector in South Africa, industry players are positive about the growth of the industry. Adrian Schofield forecasts continued growth as, “The spread of broadband access and the reduction in device costs will spur the growth in applications that meet consumer needs as well as enabling business and government to deliver products and services to their clients more effectively and more cheaply.” Telkom COO Brian Armstrong emphasised that consolidation in ICT is inevitable and believes that, “The sector is going to see brutal consolidation over the next decade. In an internet economy, scale matters; you have to be able to do things at scale. Small players will drive innovation and that’s good, but to scale you need to partner with people with scale." Meanwhile, Jebin George, a senior research analyst at IDC Middle East, Africa and Turkey, commented that, “Although South Africa's economic situation remains fragile owing to electricity shortages and strikes in the mining, manufacturing and utilities sectors, the IT market in the country will remain buoyant and continue to grow during the next four years."

The IT Industry in South Africa 2015

Full Report

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Industry Landscape

R 1 330.00(ZAR) estimated $ 83.35 (USD)*

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Industry Organogram

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Historical Reports

The IT Industry in South Africa 2026-01-31

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The IT Industry in South Africa 2024-11-27

R 9 500.00(ZAR) estimated $595.39 (USD)*

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The IT Industry in South Africa 2024-01-16

R 6 500.00(ZAR) estimated $407.37 (USD)*

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The IT Industry in South Africa 2022-04-30

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The IT Industry in South Africa 2020-09-11

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The IT Industry in South Africa 2019-04-17

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The IT Industry in South Africa 2017-12-11

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The IT Industry in South Africa 2016-09-29

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		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Value Chain	3
2.2.	Geographic Position	3
3.	SIZE OF THE INDUSTRY	3
4.	STATE OF THE INDUSTRY	9
4.1.	Local	9
4.2.	Corporate Actions	16
4.2.1.	Regulations	22
4.2.2.	Enterprise Development and Social Economic Development	24
4.3.	Continental	27
4.4.	International	30
5.	INFLUENCING FACTORS	33
5.1.	Economic Environment	33
5.2.	Electricity Supply Constraints	34
5.3.	Government Initiatives	35
5.4.	“Smart Provinces” and “Smart Cities”	36
5.5.	Strong IT Investment	40
5.6.	Innovation	41
5.7.	Labour	42
5.8.	Cybercrime	46
5.9.	Environmental Concerns	47
5.10.	Cyclicality	48
6.	COMPETITION	49
6.1.	Technology, Research and Development (R&D) and Innovation	51
7.	SWOT ANALYSIS	53
8.	OUTLOOK	54
9.	INDUSTRY ASSOCIATIONS	54
10.	REFERENCES	55
10.1.	Publications	55
10.2.	Websites	56
	APPENDIX 1	58
	The Media and ICT Seta Priority Skills List (February 2015)	58
	ORGANOGRAM	60
	COMPANY PROFILES	68
	ABSA BANK LTD	68
	ACCENTURE (SOUTH AFRICA) (PTY) LTD	74
	ACER AFRICA (PTY) LTD	78
	ACI GLOBAL LTD	80
	ADAPTIT HOLDINGS LTD	82
	ADCORP PROFESSIONAL SERVICES LTD	85
	ALLIED ELECTRONICS CORPORATION LTD	87
	ALLPAY CONSOLIDATED INVESTMENT HOLDINGS (PTY) LTD	91
	ATTACHMATE GROUP SOUTH AFRICA (PTY) LTD	93
	BARONE BUDGE AND DOMINICK (PTY) LTD	95
	BIDVEST OFFICE (PTY) LTD	97
	BLUE LABEL TELECOMS LTD	100
	BUSINESS CONNEXION (PTY) LTD	105
	CASH CONNECT MANAGEMENT SOLUTIONS (PTY) LTD	111
	CASH PAYMASTER SERVICES (PTY) LTD	113
	CCI TECHNOLOGY SOLUTIONS (PTY) LTD	115
	CEB MAINTENANCE AFRICA (PTY) LTD	117
	CHM VUWANI COMPUTER SOLUTIONS (PTY) LTD	119
	CISCO SYSTEMS (SOUTH AFRICA) (PTY) LTD	122
	DATACENTRIX HOLDINGS LTD	124
	DATATEC LTD	128
	DELL COMPUTER (PTY) LTD	133
	DELOITTE & TOUCHE SOUTH AFRICA	135
	DIMENSION DATA (PTY) LTD	139
	DIRECT TRANSACT (PTY) LTD	143
	DOCU-FILE (PTY) LTD	146
	DOCUMENT WAREHOUSE (PTY) LTD (THE)	148
	EASYPAY (PTY) LTD	151
	ECENTRIC PAYMENT SYSTEMS (PTY) LTD	153
	ENTERPRISE ELECTRONIC COMMERCE (SA) (PTY) LTD	155
	EOH HOLDINGS LTD	157
	EOH MTHOMBO (PTY) LTD	162
	ERNST & YOUNG ADVISORY SERVICES LTD	164
	FACE TECHNOLOGIES (PTY) LTD	166
	FARANANI IT SERVICES (PTY) LTD	168
	FLASH MOBILE VENDING (PTY) LTD	170
	FUJITSU SERVICES CORE (PTY) LTD	173
	GIJIMA GROUP LTD	175
	HETZNER (PTY) LTD	180
	HEWLETT-PACKARD SOUTH AFRICA (PTY) LTD	182
	IBM SOUTH AFRICA (PTY) LTD	184
	INFOVAULT (PTY) LTD	186
	INTEGR8 IT (PTY) LTD	188
	INTEL SOUTH AFRICA CORPORATION	190
	IT DYNAMICS (PTY) LTD	192
	ITEC DISTRIBUTION (PTY) LTD	194
	KPMG SERVICES (PTY) LTD	196
	LIGHTSTONE AUTO (PTY) LTD	199
	LIGHTSTONE CONSUMER (PTY) LTD	201
	MARINE DATA SOLUTIONS (PTY) LTD	202
	MCKINSEY INC	204
	METROFILE HOLDINGS LTD	206
	MICROSOFT (SA) (PTY) LTD	209
	MORVEST GROUP LTD	212
	MUSTEK LTD	215
	OLTIO (PTY) LTD	219
	ORACLE CORPORATION (SOUTH AFRICA) (PTY) LTD	221
	PARACON SA (PTY) LTD	223
	PAYCORP CORPORATE SERVICES (PTY) LTD	225
	PAYCORP GROUP (PTY) LTD	227
	PINNACLE HOLDINGS LTD	230
	PRICEWATERHOUSECOOPERS EXORDIA (PTY) LTD	233
	PRISM PAYMENT TECHNOLOGIES (PTY) LTD	235
	RICOH SOUTH AFRICA (PTY) LTD	237
	SAGE ERP AFRICA (PTY) LTD	239
	SAS INSTITUTE (PTY) LTD	241
	SETCOM (PTY) LTD	243
	SGX LOGISTICS (PTY) LTD	245
	SIEMENS (PTY) LTD	247
	SOUTH AFRICAN BANKERS SERVICES COMPANY (PTY) LTD	251
	SPARK ATM SYSTEMS (PTY) LTD	253
	STATE INFORMATION TECHNOLOGY AGENCY SOC LTD	255
	STELLAR CAPITAL PARTNERS LTD	259
	SYMANTEC SA (PTY) LTD	262
	SYSTEMS APPLICATIONS PRODUCTS (SOUTH AFRICA) (PTY) LTD	264
	T-SYSTEMS SOUTH AFRICA (PTY) LTD	267
	TPG AFRICA (PTY) LTD	269
	TRANSACTION CONTROL TECHNOLOGIES (SA) (PTY) LTD	271
	TRUSTLINK (PTY) LTD	273
	TUTUKA SOFTWARE (PTY) LTD	275
	UCS SOLUTIONS (PTY) LTD	277
	UNISON COMMUNICATIONS (PTY) LTD	280
	VERIFONE AFRICA (PTY) LTD	282
	VSOLUTION (PTY) LTD	284
	WIZZIT PAYMENTS (PTY) LTD	286

it industry south africa

The IT Industry in South Africa 2026

The IT Industry in South Africa 2024

The IT Industry in South Africa 2024

The IT Industry in South Africa 2022

The IT Industry in South Africa 2020

The IT Industry in South Africa 2019

The IT Industry in South Africa 2017

The IT Industry in South Africa 2016

The IT Industry in South Africa 2015

Report Info

Report Coverage

Introduction

Trends

Opportunities

Challenges

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Industry Organogram Industry organograms are a graphic presentation of ownership of both listed and unlisted significant players in each industry with focus of those industries where more than one company has common shareholders.

Historical Reports

The IT Industry in South Africa 2024-11-27

The IT Industry in South Africa 2024-01-16

The IT Industry in South Africa 2022-04-30

The IT Industry in South Africa 2020-09-11

The IT Industry in South Africa 2019-04-17

The IT Industry in South Africa 2017-12-11

The IT Industry in South Africa 2016-09-29

The IT Industry in South Africa 2015-05-25

Table of Contents

Report Coverage

Introduction

Trends

Opportunities

Challenges

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Historical Reports

The IT Industry in South Africa 2026-01-31

The IT Industry in South Africa 2024-01-16

The IT Industry in South Africa 2022-04-30

The IT Industry in South Africa 2020-09-11

The IT Industry in South Africa 2019-04-17

The IT Industry in South Africa 2017-12-11

The IT Industry in South Africa 2016-09-29

The IT Industry in South Africa 2015-05-25

Table of Contents

Report Coverage

Introduction

Trends

Opportunities

Challenges

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Historical Reports

The IT Industry in South Africa 2026-01-31

The IT Industry in South Africa 2024-11-27

The IT Industry in South Africa 2022-04-30

The IT Industry in South Africa 2020-09-11

The IT Industry in South Africa 2019-04-17

The IT Industry in South Africa 2017-12-11

The IT Industry in South Africa 2016-09-29

The IT Industry in South Africa 2015-05-25

Table of Contents

Report Coverage

Introduction

Strengths

Weaknesses

Opportunities

Threats

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Historical Reports

The IT Industry in South Africa 2026-01-31

The IT Industry in South Africa 2024-11-27

The IT Industry in South Africa 2024-01-16

The IT Industry in South Africa 2020-09-11

Full Report

Industry Landscape

Industry Organogram

Full Report

Industry Landscape

Full Report

Industry Landscape

Full Report

Industry Landscape

Full Report

Industry Landscape

Full Report

Industry Landscape

Full Report

Industry Landscape