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The South African IT & Telecom Distribution Channel


Overview of IT & Telecom distribution in South Africa, including essential information to develop indirect sales.


The South African IT & Telecom Distribution Channel
Macroeconomic data (2014 if not specified)

 
General Data Macroeconomic Data
Area : 1,219,912 km² GDP/capita: 7,276.02
Population : 54.978 million  GDP/capita vs. US: 11.87%
HDI : 0.666 GDP growth rate: +1.5%

ICT Market Tendencies

The profile of the South African ICT distribution channel is rather similar to that of other more developed economies and includes retailers and wholesalers, systems integrators, VARs, ISPs, etc.
South Africa is considered an important emerging market, as it is the world’s 20th largest consumer of ICT products and services. Moreover, the country’s economy has an important influence on its fellow Central and Eastern African economies. Seventy-nine percent of ICT investments originate from the UK, and key export markets include the other African countries (more than 50%), Europe (32%) and North America (17%). Purchases by the South African government represent around one sixth of all ICT turnover. Investments in the ICT sector have a direct impact on the modernization of the primary industry.

The most important ICT agglomeration is the Johannesburg region. Gauteng is by far the most active province, accounting for more than 60% of ICT companies, and most multinationals are present in this region. It is followed by the Western Cape (with 14% of all ICT companies) and Kwazulu Natal (10%), dominated mainly by national companies.
The most developed African market and infrastructure has become one of the most important destinations for the outsourcing of IT activities, due to the presence of skilled workers, time-zone compatibility with Europe, English language skills, a favourable exchange rate, and an advanced telecommunications industry. Outsourcing mostly includes the processing of accounts and claims, as well as the presence of numerous call centres.

Telecommunications is one of the fastest-growing sectors of the South African economy, reflecting the rapid growth of mobility, and a more sluggish growth of the broadband access. The entire telecom network is digitalized and includes the latest technology in the shape of wireless and satellite communication.

Software companies have developed comparative advantages in application development, networks, systems integration, database administration and web development. South Africa's ICT industry is a technological leader, especially in electronic banking services. Testing and piloting systems also represent a promising opportunity in South Africa. The consumer electronics sector is also in continuous expansion.

The following image shows the concentration of ICT partners within South Africa. 
The South African IT & Telecom Distribution Channel

Database South Africa


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FURTHER SOURCES OF INFORMATION

Distribution players: 
AXIZ Workgroup  (PYT) Ltd ; DCC DRIVE CONTROL CORPORATION PTY Ltd ; RECTRON (PYT) LTD
IT Channel Press & Players:
CRN (CMP)
Public organisations & Useful Associations:
Information Industry South Africa (IISA) , Information Technology Association of South Africa (ITA)
 

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