Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Enterprise

South African IT Spending to Grow 2.4% in 2017 – Gartner

Article Image
Total IT spending in South Africa is set to reach 266 billion Rand (US$19.75 billion) this year, a year-on-year increase of 2.4%, according to forecasts by research firm Gartner.

The segment with the biggest growth is software, where investments are expected to increase by 13.2% this year and by a further 12.4% in 2018.

IT Spending Forecast, South Africa (Millions of Rand)

"South Africa has traditionally underinvested in IT," said John-David Lovelock, a VP and distinguished analyst at Gartner. "South African organizations continue to prioritise investments in software, as software spending is the means by which they will catch up with the rest of the world," he added.

Not every segment will experience growth, though. Rising prices and the expectation of new products are expected to hit spending on devices (PCs, tablets, "ultramobiles" and mobile phones): Gartner forecasts that spending on these products will decline by 4.6% this year. However, Lovelock expects device spending to increase by 3.8% in 2018 following the introduction of new premium smartphones to the South African market.

Spending on communications services is set to hit R122 billion ($9.05 billion) this year, a year-on-year increase of 0.8%. "Price competition between regional carriers, along with extremely price-sensitive consumers, is preventing substantial growth in spending in this segment, despite an overall increase in mobile device ownership," noted Lovelock.

The staff, Connecting Africa

Innovation hub

Story

Orange Ventures, Digital Africa promise more funding for startups

Orange Ventures and Digital Africa are teaming up to invest more in tech startups in Africa and the Middle East through Digital Africa's Fuz program and the Orange Digital Center network.

Story

Hot startup of the month: Rwanda's Ampersand

Connecting Africa's hot startup this month is Rwanda's Ampersand, which designs, builds, and manufactures electric motorcycles and battery packs for motorcycle taxis.

More Innovation hub

Latest video

More videos

Partner perspectives

All Partner Perspectives

Sponsored video

More videos

Follow us on X

Industry announcements

More Industry announcements

Upcoming events

Africa Tech Festival 2024
November 11-14, 2024
Cape Town, South Africa
More Upcoming events

Africa Tech Perspectives

Story

Uber's Marjorie Saint-Lot on inclusion and sustainability in Africa

Uber's Country Manager for Ghana and Cote d'Ivoire, Marjorie Saint-Lot, shares how the ride-hailing company is approaching public-private partnerships, environmentally friendly initiatives and gender inclusion in Africa.

Story

The 100 most influential African leaders in 2023

A new report from Africa Tech Festival and Connecting Africa puts a spotlight on the top 100 African leaders in the telecoms and technology sector in 2023.

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

More Africa Tech perspectives

Guest Perspectives

Story

Omdia View: April 2024

By Omdia Analysts

April 2024's telecoms highlights in the Middle East and Africa included a license for Starlink in Ghana, new mobile termination rates in Ethiopia, and 6G trials in Bahrain – that and more in the latest Omdia View.

Story

Leveraging agritech to build resilience against climate change

By Francis Hook

ICT analyst Francis Hook discusses agritech in Africa and how the agricultural sector is using technology to build resilience against the negative effects of climate change and to ensure food security.

More Guest Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up
Tag id test-002