South Africa’s IT sector showcasing impressive growth rates for 2022
The South African IT and telecoms industry is experiencing strong growth in 2022.
South Africa's work environment is changing - businesses are increasingly being forced to invest in new technology solutions to stay up to date with the accelerated technology trends that the business world is undergoing post covid. Companies are required to stay up to date with the technology in order to support the workforce and accommodate consumer demands. IT and telecommunications providers are amongst the industries that are benefiting from the technological advancements thus opening many opportunities for foreign investors with innovative technologies.
Telecoms sector projected to be fastest growing sector in Africa
According to a new study of executives for blockchain-based mobile network operator World Mobile, the telecoms sector has been predicted to be amongst the fastest growing industries in Africa over the next five years. - Three of the four executives that participated in the study believe that the fastest growing sector will be the Telecoms sector.
The study surveyed senior executives of companies with a total annual turnover of more than $6.75 billion in Tanzania, Angola, Botswana, Cameroon, Ethiopia, Ghana, Nigeria and South Africa.
The main driver of this development according to the study is the improving internet connectivity across the continent.
According to World Mobile CEO Micky Watkins, the expansion of the Telecoms sector in Africa is essential for economic growth – the study shows that business leaders agree with his statement.
Watkins said that the growth of the Telecoms sector is directly fuelling growth development in other sectors as companies become more digital and technology driven. The sectors this mostly applies to are Financial Services, Healthcare, Retail and Education.
Successful Technology providers in South Africa benefiting from the increased demand:
The South African IT sector provides excellent opportunities for foreign companies looking to expand into new markets.
South African mobile company, Vodacom, reported an impressive 19.2% increase in data traffic and grew its mobile data subscriber base by 8.2% in 2021. Competitor MTN reported similar growth rates.
In addition to telecoms providers, growing sectors include home office technology providers such as Alviva Group. In 2021, hardware and software providers boast revenue growth of 8.4% and 7.5%, respectively. During the same time, revenues of most ICT sectors increased significantly, according to the BMIT's ICT Market Overview and Sizing Report.
According to Hector Beyers, CEO of web and mobile app developer Codehesion, consumer demand for mobile app development has increased significantly in recent months: "We have received a record number of app development requests in 2022 and have had to expand our team quickly to cope with the demand"
Should you be operating within the IT and telecommunications sector and would like to take advantage of the growing demand in Africa, please contact Enterprise Africa.
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