Post on 05-Jan-2016
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Update on South African IT MarketUpdate on South African IT Market
Adrian SchofieldPresident
Information Industry South Africa
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You have seen the movie…
One of 53 countries in Africa 46 million out of 800 million people Main centres:
Jo’burg/Pretoria (Gauteng) Cape Town (Western Cape) Durban (Kwa Zulu Natal – KZN)
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Software
$1.8 billion market, growing at 11.5% CAGR over next 5 years (mining, education, government & ERP application upgrades)
Exports only $70 million (6%), ¾ into Africa, then Europe
5 vendors = 40% of market (CA, IBM, MS, Softline, SAP)
Challenges: Fragmentation, lack QMS, poor marketing, low
incentives, small VC market, skills shortage
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Other technologies
Small hardware market, mainly assembly, some PCB manufacture
Core competencies in electronics – defence systems, avionics, metering, satellite broadcasting, telecomms
Telecomms – 1 FLO (SNO coming) 4.5m lines, 3 mobile 15m lines. Challenge: cost
Broadcasters: SABC, e-tv, Multichoice, good radio networks.
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Employment
Overall, approximately 140 000 (0.3%) >8 000 companies, mostly small 15 000 software developers, 1 000 co’s 85% of s/w co’s <50 employees, 50% <
10 employees Telkom is largest employer, shedding
jobs.
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Regulation
ICASA licences broadcasters & telecomms & other service providers
Many laws: Telecomms, Broadcasting, ECT, Interception & Monitoring, Public Access to Information, Convergence (Bill)
New challenge: Black Economic Empowerment (BEE)
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Initiatives
Skills: AIICT, JCSE, ISETT SETA (Learnerships), ISSA
Incubation: Innovation Hub, CSIR, CITI, DIT
Marketing: SAVANT/PSA, SAEEC Employment: NEDLAC Sector Summit Guidance: PIAC, PNC on ISAD, ICT
Roadmap, e-Africa Commission (NEPAD)
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