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The IT Industry in South Africa 2016

  • September 2016
  • -
  • Who Owns Whom
  • -
  • 341 pages

The South African Information Technology Sector: Information Technology (IT) has become an important enabler of economic development and social inclusion, and in the words of the Minister of Telecommunications and Postal Services, “It transforms how we live, how we do business, how we relate to each other and even how we play.” Increasing by 3.8% from 2015, South African IT spend for 2016 is expected to reach R272bn. Although estimates of the IT sector’s contribution to GDP vary between 1% and 6%, most stakeholders agree that delays in the implementation of the National Integrated ICT Policy White Paper and vital projects such as digital migration and SA Connect are restricting the growth of the sector as well as South Africa’s economic growth and social development.



A Rapidly Changing Sector: Within the IT sector the latest trend is the 4th Industrial Revolution which consists of new technologies that will seamlessly connect billions of people and devices, thereby having an impact on all disciplines, economies and industries. These advances in technology have been identified as the top megatrend that will transform the ways in which companies do business over the next five years. The IT industry is characterised by consolidations and convergence of companies within the sector, and between companies in the IT and telecommunications sectors. Analysts believe that in such a competitive and rapidly changing industry, it is critical to maintain a competitive edge through mergers, key acquisitions, joint ventures, partnerships, expansion and disposals.



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.

Table Of Contents

The IT Industry in South Africa 2016
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 (RandD) 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 and 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

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