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ICT and electronics in South Africa

The leader of information and communication technology (ICT) development in Africa, South Africa is the 20th largest consumer of IT products and services in the world.

Telecoms With a network that is 99% digital and includes the latest in fixed-line, wireless and satellite communication, South Africa has the most developed telecommunications network on the continent.

South Africa's IT industry is characterised by technology leadership, particularly in the field of electronic banking services. South African companies are world leaders in pre-payment, revenue management and fraud prevention systems, and in the manufacture of set-top boxes, all exported successfully to the rest of the world.

Several international corporates, recognised as leaders in the IT sector, operate subsidiaries from South Africa, including IBM, Unisys, Microsoft, Intel, Systems Application Protocol (SAP), Dell, Novell and Compaq.

Electronics industry revenues in South Africa are growing at levels well above the ovarall GDP growth rate. Key players in industrial, power, defence and telecoms electronics include Siemens, Alcatel, Ericsson, Altech, Grintek, Spescom, Tellumat and Marconi.

A highly competitive consumer electronics market producing high value-added electronic products is also playing an important role.

Competitive advantages
South Africa's ICT and electronics sectors are expected to continue showing strong growth in the future, due key competitive advantages specific to the country and the continent.

Testing and piloting systems and applications are growing businesses in South Africa, with the diversity of the local market, first world know-how in business and a developing country environment making it an ideal test lab for new innovations.

Outsourcing to South Africa South Africa is well placed to become a favoured international location for business process outsourcing, including outsourced call centres.

South Africa's ICT products and services industry is also well positioned to penetrate an African market that is growing fast as economic and regulatory conditions improve. South African companies and SA-based subsidiaries of international companies have supplied most of the new fixed and wireless telecoms networks that have rolled out in Africa in recent years.

Telkom, the major fixed-line operator in South Africa, is a key player in a multi-billion rand undersea fibre-optic cable project that will cater for Africa's growing telecoms needs for the next 25 years.

The environment is improving still further as competitors in international telecoms services take advantage of the liberalisation of SA's telecoms sector to launch their products in the country.

Technology incubation, research, training
Construction of the R219-million first phase of South Africa's state-of-the-art Innovation Hub was completed, and the massive science and technology park in Pretoria officially opened for business, in 2005.

A project of Gauteng province's hi-tech industrial promotion agency Blue IQ, the unique complex aims to bring high-tech industry, academia and entrepreneurs together to improve South African technology and productivity.

Taking its benchmark from the best such developments in the world, the creativity-driven centre will house technology-related businesses across a range of disciplines, including electronics, ICT, bio-science, and advanced manufacturing sectors such as defence spin-off and automotive manufacturing.

South Africa's ICT industry was boosted further in 2005 with the launch of two training, research and development institutions.

The African Advanced Institute for Information and Communication Technology - also known as the Meraka Institute - is housed at the Council for Scientific and Industrial Research (CSIR) in Pretoria, and will take a number of the CSIR's ICT projects forward.

The Johannesburg Centre for Software Engineering, a partnership between industry, academia and the government, aims to grow South Africa's capacity to deliver world-class software, develop research and training initiatives to strengthen the local software development industry, and promote best practice in software development within an African context.

SouthAfrica.info reporter, incorporating material from the Department of Trade and Industry