ICT sector faces flat growth as SA stalls
Telkom’s BCX unit predicts minimal growth in the next few years for SA’s information and communications technology (ICT) market, owing to the country’s stagnant economy. "I see the next few years, again, being flat in terms of growth, and obviously that’s going to be a challenge," said Jonas Bogoshi, who took over as CEO of BCX in June. Because the private and public sectors had been deferring spend on ICT, Telkom recently conducted a portfolio review at BCX that resulted in a number of underperforming and noncore assets being earmarked for sale. For the year ended March, BCX’s revenue fell 4.6% to R21.2bn. BCX provides a range of ICT services including software and infrastructure solutions. Bogoshi referred to reports last week that the SA economy had been tipped into a technical recession. The economy contracted 0.7% in the second quarter after shrinking 2.6% in the first three months of the year. Recession The recession would weigh on major target industries for ICT firms, such ...
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