The South African Software Industry as a Key Component of Economic Development: Pipedream or Possibility

TL;DR

This paper explores the significant role of the ICT sector, especially the software industry, in South Africa's economic development, using a framework from Irish industry analysis to assess endogenous factors influencing growth.

Contribution

It applies a framework from Irish software industry research to analyze South Africa's software sector and its impact on national economic growth.

Findings

ICT and software industry contribute to economic growth

Endogenous factors influence software industry development

South Africa shows emerging economic potential in ICT sector

Abstract

The Information and Communication sector has undoubtedly played a pivotal role in changing the way people live nowadays. Almost every area of our lives is affected by the presence and the use of the new information and communication technologies. In this regard, many researchers' attention has been attracted by the influence or the significant impact of these technologies on economic growth and development. Although the history of South Africa has had some drawbacks that could constitute a big obstacle to the emergence of a successful economic environment, the actual status of the country regarding its economy and the role that it plays in Africa towards the rest of the African countries is a vital example of an emerging economic force in Africa. This paper examines the crucial role that ICT has played and is still playing in the South African economy growth and more specifically the significance of the economic effects of the software industry. It makes use of the framework used by Heavin et al. (2003) to investigate the Irish software industry in order to analyze the impact of endogenous factors -- national, enterprise and individual -- on the software industry and its implication on the economic growth in South Africa.