According to a recent report by Gartner, IT spending is South Africa is expected to reach US$26.6 billion in 2016, a 5.1% increase from 2015.
2015 has been a difficult year for many market segments in IT but growth is expected to pick up in 2016 with a return to growth.
“South Africa has suffered currency effects, as did many developing markets this year,” said Will Hahn, principal research analyst at Gartner. “There were also impacts on communications service providers (the largest IT market segment in terms of spending), as they faced regulations that imposed decreased rates for interconnection and experienced the accelerating decline of fixed services revenue.”
While South Africa’s market is growing more slowly than other developing countries such as Brazil, India, and China, its spend-per-capita is still very high.
“South African companies have a rich understanding of both the needs of African communities and the complexities associated with their cultural and language diversity. Local developers also have the world-standard engineering skills required to develop services for Africa,” said Richard Marshall, research director at Gartner. “This is not simply about technology for the sake of it, but technology designed to address the unique challenges of African communities. These are challenges that many European or American companies are just not familiar with.”
“South Africa has some interesting innovation emerging,” said Mr. Marshall. “Good engineering and an understanding of the local markets could see some game-changing African developments emerge during the next few years.”