Tech has been the big talking point of the 21st century with the likes of Facebook, Google and Apple becoming worldwide household names. However, how are South African tech companies performing on the JSE today? Is the stock market predicting the next Google or Twitter to come from South Africa or is the tech market slowly dying in South Africa?
Jasco Electronics, a smart technology and solutions provider, topped the tech charts this year achieving a mind boggling 147.4% growth in just 1 year. Jasco is a group that has interests in everything from IT infrastructure to water solution to broadcast solutions and is continuing to expand into new industries. Along with achieving its 147.4% yearly growth, Jasco Electronics also celebrated its 40th year of operations.
Another one of the standout investments from 2016 was Blue Label Telecoms which has consistently achieved high growth rates over the last 3 years. In 2016, BlueTel achieved 54.9% growth throughout the year, following the 114.1% over the past 3 years. Bluetel is a specialist in prepaid products and the electronic distribution of virtual merchandise. Its current share price opened at R17.81 this morning and has been listed on the JSE since November 2007.
Huge Group was another outstanding performer, having a yearly growth rate of 87.8% throughout the year, compared to its 1183.3% growth over the past 3 years. Huge Group has large holding in its specifically focused companies being Huge Telecoms, Huge Connect, Huge Software and Technologies and EyeBalls Mobile Advertising. Huge Group is continuing to expand especially with its Huge Telecoms buying more stakes in other companies, which has been a factor towards the growth.
This past year, the largest growing tech companies are all based around telecoms. This could be due to the fact of large companies outsourcing their telecoms to smaller companies, i.e. BlueTel and Huge Telecoms or it could be attributed to the new acquisitions purchased by the group. Regardless of what the reason is, tech is definitely not dead in South Africa and should continue to grow into the future.