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The Information Technology Industry
BY Liz Kneale
South Africa
11 December 2017
R 10 080.00 (ZAR)  
estimated $ 789.26 (USD) *
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The South African Information Technology Sector


The Information Technology (IT) sector is highly competitive and operates in a rapidly changing landscape with new technologies posing both an opportunity and a threat. The South African IT sector, with an estimated annual market value of R270bn for 2017, or 6% of GDP, is expected to grow at 4% for 2017, down from 5% in 2016.


A Sector Impacted by Slow Economic Growth


Although the country moved out of recession in Q2:2017, showing a GDP growth of 2.5% followed by growth of 3.3% in Q3, slow economic growth has already led to a cut in spending on IT products, services and training. The current economic climate and the volatility of the Rand also reduce the finance available for start-ups and mean that imported hardware and software has become more expensive. Poor economic growth, high unemployment and increasing household expenses also influence the household disposable income available to spend on consumer electronics.


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.


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