Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      South African law is failing gig-economy workers

      12 June 2025

      MultiChoice’s TV empire shrinks – but its ‘side hustles’ are holding strong

      12 June 2025

      MultiChoice is bleeding subscribers

      11 June 2025

      Watch | Lunga Siyo on Telkom’s big growth plans

      11 June 2025
    • World

      Qualcomm shows off new chip for AI smart glasses

      11 June 2025

      Trump tariffs to dim 2025 smartphone shipments

      4 June 2025

      Shrimp Jesus and the AI ad invasion

      4 June 2025

      Apple slams EU rules as ‘flawed and costly’ in major legal pushback

      2 June 2025

      Mark Zuckerberg has finally found a use for his metaverse

      30 May 2025
    • In-depth

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025

      South Africa unveils big state digital reform programme

      12 May 2025

      Is this the end of Google Search as we know it?

      12 May 2025
    • TCS

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025

      TCS | Sentiv, and the story behind the buyout of Altron Nexus

      3 June 2025

      TCS | Signal restored: Unpacking the Blue Label and Cell C turnaround

      28 May 2025
    • Opinion

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025

      Digital giants boost South African news media – and get blamed for it

      29 May 2025

      Solar panic? The truth about SSEG, fines and municipal rules

      14 April 2025

      Data protection must be crypto industry’s top priority

      9 April 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Software piracy bad for the economy – Leon Louw

    Software piracy bad for the economy – Leon Louw

    By Editor24 March 2011
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    There is a direct link between high levels of software piracy and poor economic growth. The higher the rate of piracy, the more likely a country’s economy will stagnate.

    That’s the view of Leon Louw, executive director of the Free Market Foundation, who was speaking at a software piracy convention hosted by the foundation and the Information Technology Association on Thursday.

    Experience shows high rates of software piracy coincide with economic stagnation, especially in the IT industry, Louw says.

    “Countries with high rates of software piracy tend to be economically backward and characterised by corruption and poor governance,” he says. “Conversely, prosperity increases as piracy falls and the rule of law is upheld.”

    Louw cites research from the International Data Corp (IDC) that shows SA faring relatively well in reducing piracy levels. Piracy rates in the country are estimated at 35% — in other words, for every three software applications installed, one was pirated and two were legitimate. In the US, the figure is 20%; in Armenia, on the other end of the scale, it’s 93%.

    In addition, Louw cites Business Software Alliance research that claims that a 10 percentage point reduction in piracy rates over four years should create 1 650 hi-tech jobs in SA. According to research by the alliance, R9bn in new economic activity and R1bn in new tax would flow from such a reduction. And IDC research shows a direct correlation between economic growth and a reduction in piracy. The faster piracy rates come down, the quicker an economy grows.

    “Such correlations do not, of course, imply a direct causal link in either direction, but the overwhelming coincidence worldwide between such factors as lower piracy, corruption, poverty and unemployment rates, on one hand, and enhanced performance in virtually all areas for which there are published indices, on the other, is strong evidence for what a government should do if it wants its country to be a winning nation,” Louw says.

    Representatives of Microsoft, the Computer Society of SA, The Business Software Alliance and the department of trade and industry were also scheduled to speak at Thursday’s event.  — Staff reporter, TechCentral

    • Image: Olivier Bruchez
    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Facebook


    Business Software Alliance Free Market Foundation IDC Leon Louw Microsoft
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleMTN, Vodacom in the clear on collusion charges
    Next Article SABC ordered to apologise over Gumede story

    Related Posts

    The future of database management is hybrid. Are you ready?

    6 June 2025

    How AI is rewriting the rules of software development

    4 June 2025

    Digital giants boost South African news media – and get blamed for it

    29 May 2025
    Company News

    Building a cyber-resilient culture from the boardroom to the front lines

    12 June 2025

    How South Africa’s municipalities are finally getting smart

    12 June 2025

    Ransomware roulette: pay up or power through?

    11 June 2025
    Opinion

    Beyond the box: why IT distribution depends on real partnerships

    2 June 2025

    South Africa’s next crisis? Being offline in an AI-driven world

    2 June 2025

    Digital giants boost South African news media – and get blamed for it

    29 May 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.