Market Trends of South Africa ICT Industry
This section covers the major market trends shaping the South Africa ICT Market according to our research experts:
Robust 5G Deployment in the Country
- In South Africa, 5G infrastructure and services are now being rolled out. The South African government intends to roll out the 4G network and install the 5G network in more rural and underserved areas. It also suggested modifying the nation's laws and regulations to aid the digital revolution. The nation is heading toward a digital transformation by integrating technologies like the Internet of Things (IoT), cloud, edge computing, and 5G networks.
- The Independent Communications Authority of South Africa (ICASA) held the long-awaited broadband spectrum auction last March, and six network providers-Rain, Vodacom, MTN, Telkom, Liquid Telcoms, and Cell C-bid for frequency spectrum in distinct bands. To supply their consumers with 5G services, which need frequency spectrum in the 700MHz to 3.5GHz range, the network providers would utilize the acquired spectrum to enhance the quality of existing 4G services.
- The ICASA spectrum auction had a significant role in accelerating the rollout of 5G in South Africa. Network operators can implement their varied 5G ideas now that they have access to the spectrum. Rain's primary goal would be to protect the advantage it gained from entering fixed 5G early. Next year, the network plans to compete with Vodacom and MTN in the mobile 5G market.
- Due to work-from-home or school-from-home, online shopping, and an always-online culture, the COVID pandemic has significantly altered South Africans' way of life. 5G, with its ultra-high speed and low latency, would support new services for South African consumers, like online augmented reality, virtual reality gaming, and ultra-high-definition streaming, while enabling businesses with cloud and artificial intelligence technologies.
- 5G networks aim to increase mobile connections and improve customers' smartphone experiences. There were 108.6 million mobile connections in South Africa as of February last year. Approximately 180% of people have a mobile connection in the country.
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Digital Transformation Aiding the Financial Service Sectors
- Over the past few years, digital banks have experienced a meteoric rise in both customer acquisition and app downloads. South African customers are also embracing the digital banking trend, and the pace of innovation is not slowing down.
- The financial system in South Africa is largely recognized as one of the greatest in the whole world. Additionally, South Africa is proud to have a thriving fintech industry that benefits the nation and the African continent. The nation has long served as a significant center for international commerce and investment on the African continent.
- For the past ten years, the financial services sector in South Africa has prioritized digital on its executive agenda. It has been the primary catalyst for significant changes in the sector, fostering innovation and healthy competition. The cloud-based services, industry-specific technology, and system integration are the main growth areas in terms of ICT investment and determining IT strategy in the BFS sector.
- South Africans now feel much more at ease using internet banking due to COVID-19. The emergence of digital banks in South Africa has been made possible by digital changes. According to the study, most (86%) South Africans are prepared to do all their banking digitally, particularly via an app instead of internet banking. This tendency has been hastened by the COVID-19 epidemic, which has pushed people into digital alternatives. Most wealthy and middle-class customers preferred using an app for regular banking tasks.
- Since most of South Africa's consumers are prepared for digital banking and anticipate that the nation will provide a fully digital banking environment by 2027, incumbent banks need to change their business models to stay up. For IT executives in the BFSI industry, focusing on customer-centric strategies, digitalization, process automation, and data security remains a top concern.
- About 60% of South African individuals made or received a digital payment as of the previous year. More women than males used this financial option. In South Africa, 61.1% of women and 59% of men used digital payments that year.
