Within Africa, South Africa holds the second-largest economy which comes from high flow of foreign investment into various manufacturing and mining industries. The discovery of diamond and gold mines in the country set this sub-Saharan Africa region apart from its siblings as it opened a new economical channel. But this was 19th century news, since then, the economy of the country has undergone immense highs and lows and finally found stability under democratic rule established in 1994.
Since then, the government has taken positive measures to redistribute the economic flow in the country and lay strong foundations that are helping South Africa on the path to becoming a freer country. The government integrity has been rated as a high factor for the country’s development as it gave an all-time high recorded growth of 1.3% in 2017. The World Bank expected good growth to continue, at a rather slow pace, with some fluctuations but the arrival of pandemic in has had a major effect on the previously predicted growth.
Export, a major economic driver in the country, has come to a halt along with global trade. Though the export industry does not match anywhere near the global demand, it is a major industry that contributes to the South African GDP. The economy that was already under strain with a certain decline in growth was put under pressure by the pandemic and over 5% of crashes was observed by the end of 2020.
The ICT sector falls under ICASA (Independent Communication Authority of South Africa) and is responsible for broadband and telecommunication services along with other services like postal. According to a web report by Statistica, between 2017 to 2019, the investment in the industry jumped from about 250000 Rand to 300000 Rand and was expected to hit 350000 in 2020 but went stale at the sudden global outbreak. The revenue generated by ICT alone since its peak economic year of 2015 increased by 6.5% with major contribution from the telecommunication sub-sector. Since major multinational names have been looking for a home in the country for its data centres, the cloud computing market has also been rising at a rapid speed in South Africa.
Overall, the South African market had already been struggling and the stringent measures considering the pandemic worsened the situation. Moreover, the ICT industry was rising compared to other fields over the last few years and the bounce back is imminent moving forward.