It’s one of the fastest-growing industries, but what are the reasons for this success?
It’s said that Africa is in the midst of a tech revolution, with certain countries displaying unparalleled growth. In particular, South Africa has proven itself as an increasingly reliable revenue generator and technological innovator, leading the way in the disruptive delivery of services such as mobile software, electronic banking and security software. The country has started to receive more interest from offshore investors, with big-name brands currently operating in South Africa, including IBM, Intel and Microsoft. But what are the reasons for the tech boom in South Africa, and which kinds of innovative technology will likely be most prominent soon?
Gaming and gambling growing
Due to broad digitalisation and the growing accessibility of high-end tech for everyday consumers, we’ve seen a greater South African presence in social media and the world of iGaming. While the African continent may be home to some of the fastest-growing online gaming industries in the world, South Africa is one of its most successful and competitive exports in the gambling market. Land-based gaming venues have always gone hand-in-hand with the tourist sector in South Africa (itself a key driver of revenue), and gambling has been legalised and regulated since 1994. However, domestic online casino operators can only enter business through digitalisation and technological advancements to reach a wide base of active players. Due to changes to the regulatory framework related to online gambling, players in the country now have wider access to the top casinos. Players can enjoy free play with promo codes and choose from the wide array of games on this exclusive online casino site.
Technology and digitalisation
Like many countries in Asia, Africa, and Latin America, the Rainbow Nation is still finding its feet in the fourth industrial revolution (4IR), which has tended to favour more developed countries thus far. Although South Africa may still need to reach its potential in terms of global 4IR progress, there’s no denying that it is quickly becoming one of the most productive nations on the continent regarding innovations in disruptive tech.
Digitalisation has played a key role in recent market growth in the country, with more South Africans now using smartphones and high-speed internet than ever before. At the beginning of this year, there were around 43.8 million internet users in ZA, with a total internet penetration rate of 72.3% of the population. This signifies an increase of around 357 000 people in 2022. An ever larger portion of South Africa’s population (78.7%) now makes use of mobile devices to access the internet — this is forecast to top 90% in the next four years.
Tech start-ups thriving
It’s not just the online gambling sector that’s driving the tech renaissance in the country. Due to the growth of high-speed internet connectivity, mobile broadband, and widespread digitalisation in the region, we’ve seen more and more small tech businesses set up shop in the Rainbow Nation. Indeed, South African startup businesses generated 17% of the total funding raised by startups across the African continent from 2015 to 2022. Although South Africa’s latest wave of tech startups may generate less revenue than their neighbours in other African countries like Kenya, Nigeria, and Egypt, plenty remains to be excited about if you’re considering breaking into this brave new tech market. The tech sector will likely become an increasingly important economic driver for South Africa in the next few years.
Future tech innovations to expect in SA
Aside from a substantial rise in the number of tech startups and casinos offering no deposit bonuses to players in the country, there are plenty of reasons to be excited about the future of the South African tech sector. Perhaps most notably, this includes emerging innovations in the biotech field that could see the African continent as a whole gain world-leading status as a hub for the manufacturing of vaccines. The reputation of the country’s tech sector has been steadily attracting a wider range of offshore iGaming operators and even the investment of tech giants like Google. A range of factors, including a rapidly growing digital population and an increasingly mobile middle class, will only continue to encourage offshore investment.
South African tech on the global stage
While the country’s burgeoning tech sector may have attracted offshore investment, many domestic tech brands are challenging the global status quo. In recent years, the Rainbow Nation has produced more than its fair share of homegrown disruptive tech companies, many of which are already making their mark on a global scale. These include big-name African tech brands such as Luno, Peach Payments, Meerkat, SnapScan, Yoco, Skynamo, and EasyEquities. The South African tech industry looks set for a momentous shakeup in the coming years, and only time will tell if these local brands will stand the test of time. As the digital population continues to grow and shift, South Africa’s tech presence on the worldwide stage will likely only increase and intensify.