South Africa’s surging tech scene
Around the world, technology is being developed and released to market at an unprecedented rate, and there are now many tech startups looking to take advantage of the current demand for new technology. In South Africa, there is a buzzing tech scene, which makes it fertile ground for tech startups to grow into successful ventures.
As such, it is likely that the tech scene in South Africa will continue to grow, with an increasing number of startups being set up. Here is some information on South African tech companies, and the opportunities they present to investors.
Sagarmatha
South Africa’s first ever ecommerce IPO has come to fruition, with Sagamartha aiming for a valuation of more than $4bn. This shows just how strong the tech scene is becoming, and how much potential there is for growth in the technology sector.
Sagamartha, aside from owning ecommerce platforms, also owns newspapers and classified platforms. Its shares are set to be purchased by a number of high profile investors, which could well stimulate further investment in South African tech companies, as well as encourage more IPOs.
Investment opportunities
Given the current need for new technology around the world, investors will no doubt be on the lookout for the next big thing in terms of tech startups in South Africa. More IPOs will allow investors to put their money into promising South African tech companies, whether through online trading methods like algorithmic trading, or through direct investment in SMEs and startups.
The value of domestic IPOs has been increasing in recent years, up from $1.154bn in 2016 to $1.379bn in 2017. If this trend continues, then it is safe to say that South African investment opportunities will blossom, and the economy could be greatly strengthened as a result.
Ramaphosa
The new, business friendly president, Cyril Ramaphosa, has vowed to stimulate the economy by creating a positive environment for companies and startups in the country. His election has already had positive effects, with the rand rising in value and investor sentiment improving.
With the South African economy having been downgraded to junk status last year, it is now ripe for recovery, and the tech scene could well be leading the charge in terms of growth potential and overall profitability.
The future
South Africa is already developing its very own ‘Silicon Valley’, known as the Silicon Cape Initiative. Situated in the Western Cape, it is likely that this innovative idea will be home to the South African tech companies of the future, and will most likely attract keen interest from investors around the world.
If one thing is for certain, it is that some of the most exciting and promising technology in the coming years is likely to come from South Africa, and this will likely lead to a surge in IPOs (especially given tech companies’ potential for fast growth).
The tech scene in South Africa is stronger than ever, and there are likely to be many exciting developments in 2018. With a number of tech startups already drawing interest, there could well be more big names emerging from the tech scene in the near future.
