ABSTRACT
This chapter seeks to map out the salient features of South Africa's information technology (IT) economy and analyses the major contemporary policy issues and challenges concerning its wider development. According to Moodley et al. e-commerce in South Africa is dominated by business-to-business (B2B) rather than the much-hyped business-to-consumer transactions (B2C). Historically, South Africa's IT economy evolved during the 1960s and 1970s as a result of technological transfers from the United States and the United Kingdom and the subsequent catalytic effect of this transfer on education and skills. At national level, several initiatives have been launched to support further the economic health of the IT economy. Broadly speaking, these initiatives fall into two groups. First, a suite of programmes relate to either (1) enhancing the human resource or skills base for the IT industry, or (2) supporting the development of a network society, including infrastructure, that would incorporate also South Africa's previously disadvantaged and marginalised communities.
