| Study Period | 2022 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 39.72 Billion |
| Market Size (2030) | USD 58.09 Billion |
| CAGR (2025 - 2030) | 7.90 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South Africa ICT Market Analysis
The South Africa ICT Market size is estimated at USD 39.72 billion in 2025, and is expected to reach USD 58.09 billion by 2030, at a CAGR of 7.9% during the forecast period (2025-2030).
- South Africa's ICT and electronics industry, a notable GDP contributor, boasts a roster of global players like IBM, Microsoft, and Dell, who have established strong footholds in the nation. Notably, South Africa serves as a pivotal regional hub and supply center for neighboring countries.
- South African ICT goods and services are making significant inroads into the rapidly expanding African market. In fact, a majority of the continent's new telecommunications networks, both fixed and wireless, have been spearheaded by South African firms or local arms of international corporations.
- As internet providers increase and bandwidth, security, and broadband prices improve, cloud computing is gaining prominence. This shift is being further bolstered by upgrades to data center infrastructure. Notably, since 2016, approximately 60% of major South African businesses have integrated cloud computing into their operations.
- While South Africa leads in smart city technologies in Africa, there is a pressing need to ensure all citizens have access to basic services. Once fundamental needs like housing, water, and power are addressed, cities can focus on enhancing residents' lives through digital advancements.
- The IT industry, and specifically start-ups, are experiencing a boom in South Africa. The government's ICT Small, Medium, and Micro-Enterprises (SMME) Development Strategy aims to foster the growth of other businesss through initiatives like incubation, networking, and capacity-building, all backed by government funding.
South Africa ICT Market Trends
Robust 5G Deployment in the Country
- South Africa is currently in the process of rolling out its 5G infrastructure and services. The government's strategy involves not only expanding the 4G network but also prioritizing the installation of 5G in rural and underserved regions. Additionally, there are discussions about adapting the nation's laws and regulations to better facilitate this digital revolution. This concerted effort is part of South Africa's broader push toward achieving a digital transformation, which includes the integration of cutting-edge technologies such as the Internet of Things (IoT), cloud computing, edge computing, and, notably, 5G networks.
- In March 2022, the Independent Communications Authority of South Africa (ICASA) conducted a highly anticipated broadband spectrum auction. During this auction, six major network providers - Rain, Vodacom, MTN, Telkom, Liquid Telecoms, and Cell C - vied for frequency spectrum across various bands. These providers, aiming to offer 5G services to their customers, focused on securing spectrum ranging from 700 MHz to 3.5 GHz. This spectrum acquisition not only paved the way for 5G but also promised enhancements to existing 4G services.
- The ICASA spectrum auction played a pivotal role in expediting South Africa's 5G rollout. With access to the spectrum, network operators are now poised to implement their diverse 5G strategies. For instance, Rain, having established itself in the fixed 5G space, is now eyeing a competitive stance against industry giants like Vodacom and MTN in the mobile 5G arena.
- 5G networks in South Africa are not just about expanding mobile connections but also about enhancing the overall smartphone experience for customers. As of February 2002, the country boasted 108.6 million mobile connections, translating to approximately 180% mobile penetration.
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Digital Transformation Aiding the Financial Services Industry
- Over the past few years, digital banks have seen a remarkable surge in customer acquisition and app downloads. South African consumers are swiftly adopting digital banking, and the pace of innovation shows no signs of slowing.
- South Africa boasts one of the world's leading financial systems and takes pride in its flourishing fintech industry, which benefits not only the nation but also the broader African continent. Historically, South Africa has been a pivotal hub for international commerce and investment in Africa.
- Over the last decade, South Africa's financial services industry has placed a strong emphasis on digital initiatives. This focus has been instrumental in driving significant sector-wide transformations, fostering innovation, and intensifying competition. Cloud-based services, industry-specific technologies, and system integrations have emerged as key areas for ICT investments and shaping IT strategies within the BFS industry.
- Given that a majority of South Africans are embracing digital banking and foresee a fully digital banking landscape by 2027, traditional banks must swiftly adapt their business models. IT executives in the BFSI industry are increasingly focusing on customer-centric strategies, digitalization, process automation, and bolstering data security.
- As of 2022, approximately 60% of South Africans engaged in digital payments, with a higher participation rate among women. Specifically, 61.1% of women and 59% of men in South Africa utilized digital payment methods.
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South Africa ICT Industry Overview
The South African ICT market is currently fragmented, with numerous players vying for a higher market share. Leading companies, including IBM Corporation, Wipro, and Vodacom South Africa, are actively pursuing advancements. Notably, these firms are forging collaborations to extend their reach into developing regions, solidifying their market presence. Other significant players in this landscape include Telkom SA and MTN South Africa.
- In January 2024, Google launched its inaugural Africa Cloud region in Johannesburg, South Africa, making it operational for customers. This move enabled businesses across the continent to tap into Google's high-performance, secure, and low-latency cloud services. Google plans to host an event in Johannesburg later in the year, showcasing the region's transformative capabilities for African businesses.
- In April 2024, the South African antitrust agency stated that it was poised to launch an investigation into Microsoft, specifically focusing on its cloud computing licensing practices. The South African probe into Microsoft is expected to closely resemble the antitrust case pursued by the European Union.
South Africa ICT Market Leaders
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IBM Corporation
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Unisys
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Microsoft
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Vodacom South Africa
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Telkom SA SOC Limited
- *Disclaimer: Major Players sorted in no particular order
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South Africa ICT Market News
- July 2024: Huawei Africa Connect 2024, themed "Accelerate Industrial Intelligence," took place in Johannesburg, South Africa. During the event, Huawei showcased its Xinghe Intelligent Network Solution, tailored for Southern Africa, which aims to propel industries toward Net5.5G and expedite their intelligent evolution. As global momentum surges toward intelligent transformation, Southern African nations are actively charting their paths toward digital and intelligent metamorphosis. In this swiftly approaching era of intelligence, networks stand out as pivotal ICT infrastructure. As the industry collectively steers toward this intelligent era, there is a growing consensus that forthcoming data communication networks in the country would be defined by Net5.5G.
- August 2024: Codehesion stands out as an award-winning software development firm, delivering top-tier solutions to South Africa's leading enterprises. The company's expertise spans custom software development, mobile app creation, design, maintenance, project management, team augmentation, and training.
South Africa ICT Industry Segmentation
Information and communication technologies (ICT) encompass a wide array of communication technologies, including wireless networks, the internet, computers, cell phones, software, videoconferencing, middleware, social networking, and various media applications. These technologies empower users to store, access, transmit, retrieve, and manipulate information in digital formats.
The South African ICT market is segmented by type into hardware, software, IT services, and telecommunication services. By size of the enterprise, the market is segmented into small and medium enterprises and large enterprises. By industry vertical, the market is segmented into BFSI, IT and telecom, government, retail and e-commerce, manufacturing, energy and utilities, and other industry verticals). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | Hardware |
| Software | |
| IT Services | |
| Telecommunication Services | |
| By Size of Enterprise | Small and Medium Enterprises |
| Large Enterprises | |
| By Industry Vertical | BFSI |
| IT and Telecom | |
| Government | |
| Retail and E-commerce | |
| Manufacturing | |
| Energy and Utilities | |
| Other Industry Verticals |
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South Africa ICT Market Research Faqs
How big is the South Africa ICT Market?
The South Africa ICT Market size is expected to reach USD 39.72 billion in 2025 and grow at a CAGR of 7.90% to reach USD 58.09 billion by 2030.
What is the current South Africa ICT Market size?
In 2025, the South Africa ICT Market size is expected to reach USD 39.72 billion.
Who are the key players in South Africa ICT Market?
IBM Corporation, Unisys, Microsoft, Vodacom South Africa and Telkom SA SOC Limited are the major companies operating in the South Africa ICT Market.
What years does this South Africa ICT Market cover, and what was the market size in 2024?
In 2024, the South Africa ICT Market size was estimated at USD 36.58 billion. The report covers the South Africa ICT Market historical market size for years: 2022, 2023 and 2024. The report also forecasts the South Africa ICT Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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South Africa ICT Industry Report
The South Africa Information and Communication Technology (ICT) Industry is undergoing a significant transformation, fueled by rapid technological advancements and a growing demand for digital solutions. As one of the most advanced markets in Africa, it's experiencing a surge in cloud-based services, internet of things (IoT), artificial intelligence (AI) technologies, and cybersecurity solutions. Government support, expanding mobile/internet penetration, and a rising appetite for e-commerce are propelling growth, despite challenges like inadequate infrastructure and regulatory complexities. Opportunities abound in leveraging 5G, investing in cybersecurity, expanding digital literacy, and exploring smart city initiatives. The industry spans telecommunications, software development, hardware manufacturing, IT services, and e-commerce, each witnessing unique trends like the surge in mobile services and e-commerce growth. With support from Mordor Intelligence™ Industry Reports, which provide a market forecast, size, share, and revenue growth rate, stakeholders can access a comprehensive analysis and free report PDF download for deeper insights. As the South Africa ICT industry evolves, it promises lucrative growth and innovation opportunities in the digital landscape.
