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

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.