Digital Economy & ICT

Overview

The Digital Technology and Business Services Sector consists of the following sub-sectors: Business Process Outsourcing, IT services, Hospitality and Tourism, IT services , Fintech services and Film, TV and Documentaries

The Oil and Gas and Infrastructure Sector consists of the following subsectors: Downstream Oil and Gas Infrastructure projects and Services for Oil and Gas projects

The above-mentioned sectors have been identified as having respectable potential to create jobs and expand South Africa’s GDP. Major international companies that have invested in these sectors are IBM, Amazon, Genpact, Wipro, Infosys, Talk Talk, Shell, BP, and Total.

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Value Proposition

Digital Technology

Government has created a favourable environment to stimulate investment in internet infrastructure and continues to establish regulations (digital migration, POPI Act, Spectrum Auction, Cloud Policy Development and ICT Masterplan) to support growth of the sector.
By 2030, ICT is expected to underpin the development of an inclusive dynamic information society and knowledge economy through the development of a comprehensive and integrated e-strategy that reflects the crosscutting nature of ICTs. South Africa has relevant expertise related to fibre, datacentres, wireless infrastructure, computing and storage facilities, cybersecurity and institutional and operational capacity across hardware and software infrastructure required to successfully capture 4th Industrial Revolution investment and manufacturing opportunities.

Business Process Outsourcing

South Africa’s focus in terms of Business Process Outsourcing is on the following
Back Office Service Hubs (call centres with focus on international work);
Knowledge Process Outsourcing;
Legal Process Outsourcing;
ICT (Datacentres);
Software Design and Engineering;
Game Development and Transcription Services

South Africa is an attractive foreign direct investment destination due to the following factors; lucrative incentives, major cost savings to source destinations such as UK, USA, and Australia of at least 40-45% on steady state operating basis, good infrastructure, robust enabling environment and good lifestyle.

Film, TV and Documentaries

South Africa’s focus is on pre and post-production facilities for film sets and animation productions

South Africa’s value proposition for film, television and documentaries is related to the following:

South Africa is an easy double for anywhere in the world, it offers world class production infrastructure and enabling environment access up to 35% rebate for co-production treaty countries, South Africa boast numerous experienced and capable crew available and supply related companies for film equipment rentals, transport, hospitality and catering.

Oil and Gas and Infrastructure:

South Africa’s focus in the Oil and Gas and Infrastructure sectors are on downstream oil and gas projects and services for oil and gas projects.

South Africa’s value proposition relates to a well-developed downstream industry, sufficient demand exists for development of refineries and storage and distribution of LPG and LNG, investment opportunities exist for building of LNG and LPG pipeline infrastructure and South Africa being the preferred destination for the repair, maintenance and upgrading of drilling ships, semi-submersibles and jack-up rigs operating in African waters.

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ICT Opportunities

Related Publication

Publication

Investing in South Africa's Global Services Sector Fact Sheet

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