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South Africa Information Technology Report Q2 2018

South Africa Information Technology Report Q2 2018

BMI View:

We continue to hold a positive growth outlook for the South African IT market in 2018 and this view extends to thewhole of the five-year period to 2022. The software and IT services segments will outperform as public and private sectororganisations leverage a growing availability of cloud-based solutions to drive cost-cutting and efficiency gains in their operations.On the hardware side, weakened purchasing power for imported devices following currency stabilisation will result in more volatilelocal currency demand. However, potent risks of increased political instability and the credit rating downgrade could set the randback on a steeper depreciatory trajectory, weighing risks for our positive growth forecasts firmly to the downside.

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