South Africa Information Technology Report - Business Monitor International - Industry Reports

South Africa Information Technology Report

South Africa Information Technology Report - Business Monitor International - Industry Reports
South Africa Information Technology Report
Published Oct 08, 2016
78 pages — Published Oct 08, 2016
Price US$ 1,295.00  |  Buy this Report Now

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Abstract:

We expect a slight acceleration in IT market spending growth in ----, with total spending forecast to increase by -.- to ZAR--.-bn. Our Country Risk team for South Africa holds a weak outlook for the rand against the US dollar and we believe that this trend will continue into ----, squeezing dollar denominated market prospects. In ----, the market contracted -.- in US dollar terms and we anticipate another --.- contraction this year, before returning to growth from ---- onwards. Nonetheless, local consumer and business confidence will remain weak and susceptible to external shocks and global headwinds that present downside risk to our core scenario of improved performance in ----. Despite the challenging economic environment there are sources of optimism for vendors operating in South Africa. We consider the small- and medium-sized enterprise segment to be an increasingly important driver of IT spending in South Africa. Meanwhile, broadband access continues to improve in terms of capacity and coverage, following investments in submarine and terrestrial fibre optic networks, and is expected to be an important driver of spending across all IT market segments.

...BMI View: Deterioration in the economic environment in ---- and ---- was a drag on IT market growth, a trend we expect will extend into ----, albeit with the squeeze set to ease slightly. The market will continue to expand in local currency terms, but our outlook for the IT market in South Africa is much weaker in US dollar terms due to the outlook for further rand depreciation against the US dollar. ...BMI View: Deterioration in the economic environment in ---- and ---- was a drag on IT market growth, a trend we expect will extend into ----, albeit with the squeeze set to ease slightly. The market will continue to expand in local currency terms, but our outlook for the IT market in South Africa is much weaker in US dollar terms due to the outlook for further rand depreciation against the US dollar. Nevertheless, we maintain these challenges will continue to ease gradually over the medium term, unlocking faster IT market spending growth. Our forecast envisages South Africa s IT market will increase in value from ZAR--.-bn in ---- to ZAR---.-bn in ----, corresponding to a CAGR of -.- over ---------. While there are many challenges, there is underlying growth potential due to low device and solution penetration in the retail and enterprise markets that vendors can tap as conditions become more favourable.

...Computer Hardware Sales: ZAR--.-bn in ---- to ZAR--.-bn in ----, a compound annual growth rate (CAGR) of -.- in local currency terms. Rand depreciation represents downside risk by squeezing household purchasing power, resulting in deferred purchases and substitution for cheaper models in South Africa s import-dependent market. ...

  
Source:
Document ID
1750-516X
Country
Industry
Industry
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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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MLA:
Business Monitor International - Industry Reports. "South Africa Information Technology Report" Oct 08, 2016. Alacra Store. Dec 10, 2016. <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/South-Africa-Information-Technology-Report-2026-471>
  
APA:
Business Monitor International - Industry Reports. (2016). South Africa Information Technology Report Oct 08, 2016. New York, NY: Alacra Store. Retrieved Dec 10, 2016 from <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/South-Africa-Information-Technology-Report-2026-471>
  
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