The largest IT companies in South Africa

South Africa has several in-house information technology companies worth over Rand 1 billion.

After making huge gains during the height of the Covid-19 pandemic, most of the major global tech stocks took a hit in 2022.

The reasons for the recession are multiple, but primary factors include continued supply chain constraints, declining demand for products and services following the easing of blockades, and uncertainty over the Russia-Ukraine conflict.

However, several analysts say these companies will remain a good long-term bet and should return to growth.

Prior to the recent crash, the shares of US giants like Amazon, Apple, Google and Microsoft have shown exponential growth over the past five years.

According to Listcorp.comthere are 19 technology companies listed on the Johannesburg Stock Exchange (JSE).

However, the largest four have their headquarters overseas or operate effectively from abroad.

These include Naspers (valued at R635.93 billion) and its spin-off Prosus (R1.45 trillion), the JSE’s most valuable tech company.

Prosus is officially based in Amsterdam. Although Naspers still points to its headquarters in Cape Town, many of its top executives are now also based in the Netherlands.

Bytes Technology is the third most valuable technology company in the JSE.

It was previously a subsidiary of Altron, but was spun off into an independent entity and listed separately.

Its headquarters are in the UK, where it was initially established before Altron acquired it in 1998.

Karooooo, the main success story stemming from vehicle monitoring and fleet management company Cartrack, is the fourth most valuable tech company in the JSE with R11.84 billion.

It decided to move its headquarters to Singapore along with the rebranding in early 2021.

Finally, Adapt IT was canceled from the JSE following its acquisition by Volaris, based in Canada.

Adapt the IT campus

Excluding these five companies from our analysis, Datatec was the most valuable technology company in South Africa, with a market capitalization of R8.44 billion.

Founded in 1986, the Johannesburg-based multinational now has four main divisions: Weston-Comstor technology distributor, IT managed services provider Logicalis, Analysys Mason consulting services and Datatech Financial Services.

It was first listed on the JSE in December 1994 and began its international expansion when it acquired Logicalis Networks in 1997.

The following year, it acquired a majority stake in the US distributor Westcon.

His portfolio continued to grow in the following years.

During its last financial year, it posted operating income of $ 82.1 million (R1.2 billion).

Listing of Datatec shares from 2018 to 2022

The second largest South African IT company is Allied Electronics Corporation Limited, better known as Altron, which is currently worth around 3.93 billion Rand.

Founded in 1965, the company offers products and services across a broad range of verticals, including Smart IoT, managed services, digital transformation, fintech and healthtech.

Outside of South Africa, it is also present in the Middle East and Australia.

Altron’s shares performed relatively well until December 2020, when it completed the spin-off of Bytes Technology.

The price tumbled from a high of R34.60 to R9.33 and continued to trade around that level.

Altron share price from 2018 to 2022

South Africa’s third publicly traded technology company is Alviva Holdings, which has 15 companies in its fold.

These include ICT equipment distributors and suppliers such as Axiz, Pinnacle and Tarsus, data infrastructure company Datacentrix and Datanet, insurance and financial solutions provider Centrafin and renewable energy company Solareff,

Alviva’s stock plummeted at the start of the Covid-19 pandemic, but have since rebounded, as shown in the chart below.

Alviva share price from 2018 to 2022

The table below lists the 16 largest IT companies in South Africa by market capitalization.

There is a separate section for companies based abroad.

The largest South African IT companies
Agency Market capitalization Stock price
Datatec Limited R8.44 billion R37.77
Allied Electronics Corporation (Altron) R3.93 billion R9.49
Alviva Holdings Limited R2.29 billion R18.71
Limited capital appreciation R2.16 billion R1.64
AYO technological solutions R956.48 million R2.62
EOH Holdings R953.34 million R5.38
Mustek Limited R901.61 million R15.89
PBT Limited Group 794.37 million Rand R7.50
Sebata Holdings Limited R293.03 million R2.55
Limited edition R282.21 million R0.50
ISA Holdings Limited R172.3 million R1.01
Cognition Holdings Limited R149.03 million R0.65
Jasco Electronics Holdings R113.91 million R0.31
Silver Bridge Holdings Limited R57.1 million R1.70
The best tech companies on JSE based outside of South Africa
Agency Market capitalization Stock price
prose R1.45 trillion R711.04
Naspri R681.84 billion R1,478.27
Byte technology R20.27 billion R86.50
dear R11.62 billion € 380.00

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