The IT distribution markets in South
Africa and the Middle East experienced contrasting challenges and
opportunities last year, with a noticeable recovery in the latter half
of the year, setting the stage for a promising 2025.
South Africa: A Year of Highs
and Seasonal Lows
Our market insights show that South
Africa’s IT distribution saw its strongest performance in Q2 and Q3
2024, delivering the best results in the past few quarters. However, a
predictable dip in Q4 mirrored the sluggish close to 2023.
Key markets such as networking,
security, cloud, and software drove revenues in Q3 and Q4, although
only security and cloud sustained growth into Q4. Enterprise server
revenues achieved double-digit year-on-year (YoY) growth in 2024,
demonstrating a robust demand for infrastructure solutions. IT
distribution sales for PCs saw modest YoY growth of 2.4%, while gaming
spiked with double-digit revenue increases, fueled by growing consumer
interest in entertainment and high-performance devices.
While 2024 saw challenges for IT
distribution overall, a solid recovery in the second half provides a
strong foundation for 2025. We see that the market remains optimistic
about the impact of AI-driven products and services as these
technologies begin to materialise.
Middle East: Gradual Growth and
Infrastructure Strength
In the Middle East, particularly in
the key markets of Saudi Arabia (KSA) and the UAE, distribution
revenues showed steady improvement in Q3 and Q4 2024 compared to 2023.
Hardware revenues remained consistent, while software achieved its
best quarter in eight quarters during Q4.
Infrastructure solutions stood out,
recording double-digit YoY growth in Q4, reflecting the region’s
continued investment in large-scale projects. However, client
solutions saw a YoY decline in Q4, pointing to shifting priorities
within the market.
As in South Africa, the second half
of 2024 marked a period of recovery for the Middle East, and
optimism abounds for 2025 as AI technologies and advanced solutions
take center stage.
Stay up to date on
the latest market intelligence for the IT channel, by
tuning into CONTEXT’s weekly IT Industry Forum
webinars.
