South Africa has been a potentially ripe country for investment, since the fall of Apartheid couple of years ago. With well established sophisticated communication and technology equipments, the country has witnessed successful economy in recent years, with leadership particularly in the field of mobile software and electronic banking services.
South African enterprises currently allocate their ICT budgets across the core areas of enterprise ICT spend, namely hardware, software, IT services, communications and consulting. Investments in IT sector, reaching $10,6-billion in 2010, according to the South African Electrotechnical Export Council (SAEEC), the country generated an estimated $29-billion in revenues, R10.3-billion of which comes from IT.
The success of ITC facilities, have created the demand from business users to be able to use their own choice of devices in the workplace, forcing businesses to adapt their processes and networks to accommodate mobile technology. The government amended the Income Tax Act in efforts to stimulate local innovation and create jobs.
Software developers can now claim back 150% of research and development (R&D) expenses against tax. There are around 1000 software development firms in South Africa.