Tech Trends in South Africa 2025

The report focuses on technology developments that affect a broad range of sectors including developments in AI, blockchain and cryptocurrency, fintech, digital payments and digital banks, cybercrime and cybersecurity, ecommerce, sustainability, robotics, healthtech, agritech and edtech. The report includes influencing factors such as tech investment, regulation, remote work, skills shortages and job creation and tech costs. 

Introduction

• The role of technology has become increasingly important for businesses across all industry sectors.
• Companies are spending considerable amounts of money on technology improvements such as AI, IoT, blockchain and fintech to increase productivity and profits.
• South Africa is one of the 20 largest crypto markets worldwide.
• There is some concern that South Africa has become less attractive for venture capital investment in recent years.
• Increased use of technology has led to growing risks of cybercrime and cyberattacks.
• There is debate over whether AI and other technology trends will lead to job losses, whether the costs are worth it and whether they do indeed lead to productivity increases.

Market Trends

• AI continues to gain prominence through the use of tools like ChatGPT.
• Demand will continue for IT companies to manage cloud computing demand.
• Development of more efficient networks, such as 5G and 6G.
• Digital transformation will provide continued revenue to software companies.
• Ecommerce continues to increase its share of total retail sales.
• Growing use of digital banking solutions and local digital banks.
• Interest will increase in quantum technology and bioengineering solutions.
• IoT deployment is fuelling growth in smart cities and smart homes.
• Large-scale retail adoption of cryptocurrency is imminent in South Africa.
• Open banking solutions have led to a growth in banks partnering with fintechs and non-banks offering fintech solutions
• Remote work is still popular, despite more staff returning to the office.
• Robotics deployment will grow across industry sectors.
• Stablecoins have gained traction due to their stable value.
• Sustainability, including the development of more environmentally-friendly tech products and technology to fund sustainability and e-mobility.
• The rollout of e-government solutions will continue.

Market Opportunities

• Deployment of data centres to power the growth in AI.
• Development of blockchain solutions such as the tokenisation of assets, the management of records and the digitisation of government services.
• Development of fintech solutions, particularly digital payment and remittance solutions.
• Investing in and supporting local tech startups.
• Rollout of IoT solutions such as smart homes, smart cities.
• Some cities can use the remote work trend to boost their economy.
• Tech solutions to improve productivity in sectors including healthcare, insurance, education, agriculture and property.
• The development of AI solutions to automate routine tasks, enhance detection and to develop chatbots.
• The development of cryptocurrency payment solutions.
• The development of cybersecurity products and training.
• Using augmented reality to develop digital twins.

Market Challenges

• AI and blockchain need large amounts of computational resources, which may affect sustainability.
• AI risks such as inaccuracies, privacy, and ethical concerns.
• At-scale adoption of virtual reality and augmented reality is taking longer than expected.
• Concern by citizens over cost of living increases in cities where remote work has become popular.
• Concern over tech solutions, particularly AI, destroying jobs.
• Concern that AI development has slowed.
• Cyberattacks.
• Digital payments are hindered by factors such as high fees, lack of digital literacy and interoperability.
• Global shortage of IT skills.
• Regulation that is not adaptive to new tech trends.
• Tech solutions are often expensive to deploy, meaning well-resourced, large, companies can afford them.
• VC investment has declined globally since 2022.

Market Outlook

• While tech trends such as AI, fintech and cryptocurrency are expected to continue to grow in importance, there are challenges.
• Uncertainties affecting AI include privacy concerns, ethical issues, inaccuracies and environmental impact, as well as a lack of skills to deploy AI effectively.
• Cryptocurrency is still not widely accepted as a payment option.
• Experts say fintech challenges include a lack of interoperability, concern over cybercrime, and high costs.
• One of the biggest challenges is the need to improve cybersecurity in South Africa.
• Local cybersecurity industry standards and regulations are being developed.