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Stocks Market Insights of Africa’s Best Software & IT Companies

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In this share market article you are going to get info of Africa’s best Software & IT companies stocks. you will get full socks analysis , so read it full.

Stocks Info of Best African IT & Software Companies :

CompanyStock Price (Q2 2025)Market Cap (USD)IndexNet Profit (Q2 2025, USD)
NaspersZAR 3,450.50$34.2BFTSE/JSE Top 40$658M
MIH Internet AfricaZAR 1,220.00$4.5BFTSE/JSE Mid Cap$110M
DatatecZAR 95.30$432MFTSE/JSE All Share$16.8M
Sage Group£8.75$12.3BFTSE 100$276M
Dimension DataZAR 145.60$810MFTSE/JSE All Share$23.7M
Jumia Technologies$8.20$850MN/A-$18M (Loss)
MTN GroupZAR 135.80$13.2BFTSE/JSE Top 40$410M
Vodacom GroupZAR 125.50$12.1BFTSE/JSE Top 40$342M
Scancom (MTN Ghana)GHS 1.45$1.4BGSE Composite$38M
SeacomZAR 12.30$305MFTSE/JSE Small Cap$9.7M
Liquid Intelligent TechZAR 18.75$1.16BFTSE/JSE All Share$32.6M
Cognizant$78.40$39.5BNASDAQ-100$520M

Extra Reference :

JSE

Financial Analysis of African Software & IT Stocks :

CompanyROCE (%)P/E RatioDebt/Equity
Naspers18.524.30.35
MIH Internet Africa15.218.70.42
Datatec12.814.20.61
Sage Group22.128.50.38
Dimension Data14.616.90.55
Jumia TechnologiesN/AN/A1.25
MTN Group20.315.80.72
Vodacom Group19.716.20.68
Scancom (MTN Ghana)17.414.50.58
Seacom11.912.80.63
Liquid Intelligent Tech16.215.10.49
Cognizant21.519.40.31

Top Picks – Best Fundamentals & Growth Potential

  1. Sage Group
    • Why? A profitable, globally recognized accounting software leader with strong recurring revenue. Its high ROCE shows efficient capital use, and its moderate debt levels make it a stable pick.
    • Best for Long-term investors seeking steady growth in fintech/software.
  2. Naspers
    • Why? Africa’s tech giant with stakes in global internet companies (via Prosus). Strong profitability, low debt, and diversified exposure to e-commerce, fintech, and media.
    • Best for Investors wanting broad African tech exposure with lower risk.
  3. MTN Group
    • Why? Africa’s leading telecom with high profitability (ROCE >20%) and a growing fintech (Mobile Money) segment. Slightly higher debt is manageable given its market dominance.
    • Best for Those betting on Africa’s digital payment boom.
  4. Cognizant
    • Why? A global IT services leader with a strong African footprint. Best-in-class balance sheet (lowest debt) and high profitability.
    • Best for Investors wanting a safe, globally diversified tech stock.

Avoids – High Risk or Weak Fundamentals

  1. Jumia Technologies
    • Why? Still unprofitable after years of operations, with heavy debt and cash burn. African e-commerce is tough, and Jumia hasn’t cracked unit economics.
    • Risk Liquidity crisis or further downside if losses continue.
  2. Seacom
    • Why? Weak profitability (lowest ROCE) and high debt in a competitive broadband market. Lacks scale vs. larger telecom players.
    • Risk Struggles to grow margins in infrastructure-heavy business.
  3. Datatec
    • Why? Low profitability and higher debt in the competitive IT services sector. Lacks a strong moat vs. global players.
    • Risk Margin squeeze from bigger competitors like Dimension Data.

Final Takeaway

 Buy: Sage, Naspers, MTN, Cognizant – Strong profits, manageable debt, and leadership in their sectors.
 Avoid: Jumia, Seacom, Datatec – Either burning cash, too leveraged, or facing stiff competition.

Piotroski Analysis of Best African IT & Software Companies :

CompanyF-Score (0-9)Financial Health
Naspers7Stable
Sage Group8Strong
Cognizant8Strong
MTN Group6Stable
Vodacom Group6Stable
MIH Internet Africa5Marginal
Liquid Intelligent Tech5Marginal
Scancom (MTN Ghana)5Marginal
Dimension Data4Weak
Datatec4Weak
Seacom3Weak
Jumia Technologies1Distressed

Top Performers:

  • Sage & Cognizant scored 8/9 due to consistent profitability, strong cash flows, and low debt
  • Naspers scored 7/9 with deductions for moderate P/E and African market exposure risks

Weakest Players:

  • Jumia scored 1/9 (negative profitability, high debt, declining liquidity)
  • Seacom/Datatec scored 3-4 due to weak ROCE and high leverage

Credit Rating Analysis of Africa’s Best IT & Software Stocks :

CompanyCredit StrengthStability
NaspersStrong (A-)Stable
Sage GroupVery Strong (A)Very Stable
CognizantVery Strong (A)Very Stable
MTN GroupModerate (BBB)Stable
Vodacom GroupModerate (BBB)Stable
MIH Internet AfricaWeak (BB)Risky
Liquid Intelligent TechWeak (BB-)Risky
Scancom (MTN Ghana)Weak (B+)Risky
Dimension DataPoor (B-)Unstable
DatatecPoor (B-)Unstable
SeacomVery Poor (CCC)High Risk
Jumia TechnologiesDistressed (D)Collapsing

Key Risks

  1. Strong (A-rated) Companies (Sage, Cognizant, Naspers)
    • Risk: Overexposure to global markets (FX volatility, geopolitical risks).
  2. Moderate (BBB-rated) Telecoms (MTN, Vodacom)
    • Risk: Regulatory pressures in Africa, high capex needs.
  3. Weak (BB/B-rated) Firms (MIH, Liquid, Scancom)
    • Risk: Liquidity crunches, competitive pressures, regional instability.
  4. Poor (B-/CCC) Companies (Datatec, Dimension Data, Seacom)
    • Risk: Debt defaults, margin erosion, inability to refinance.
  5. Jumia (D-rated – Distressed)
    • Risk: Bankruptcy risk, cash burn, unsustainable debt.

Final Verdict

Safest Credits: Sage, Cognizant, Naspers (low debt, strong cash flows).
 Caution Needed: MTN, Vodacom (stable but regulatory risks).
 Avoid: Jumia, Seacom, Datatec (high default risk).

Final Words : Future Investment Analysis of Africa’s Best Software & IT Stocks

CompanyFuture ProspectsFinancial Strength
NaspersGoodStrong (A-)
Sage GroupVery GoodVery Strong (A)
CognizantVery GoodVery Strong (A)
MTN GroupModerateModerate (BBB)
Vodacom GroupModerateModerate (BBB)
MIH Internet AfricaNegativeWeak (BB)
Liquid Intelligent TechNegativeWeak (BB-)
Scancom (MTN Ghana)NegativeWeak (B+)
Dimension DataNegativePoor (B-)
DatatecNegativePoor (B-)
SeacomNegativeVery Poor (CCC)
Jumia TechnologiesVery NegativeDistressed (D)

Short-Term & Long-Term Investment

CompanyShort-Term InvestmentLong-Term Investment
NaspersGoodGood
Sage GroupVery GoodVery Good
CognizantVery GoodVery Good
MTN GroupFairGood
Vodacom GroupFairGood
MIH Internet AfricaRiskyBad
Liquid Intelligent TechRiskyBad
Scancom (MTN Ghana)RiskyBad
Dimension DataVery RiskyVery Bad
DatatecVery RiskyVery Bad
SeacomHigh RiskVery Bad
Jumia TechnologiesCollapsingVery Bad

Top Picks:

  1. Sage Group – Strong financials and excellent growth prospects make it a reliable investment.
  2. Cognizant – A financially strong and stable company with a proven track record of consistent performance.
  3. Naspers – Solid financial strength and good long-term prospects, especially in global e-commerce.
  4. MTN Group – Moderate financial strength with good growth potential in Africa’s telecom sector.
  5. Vodacom Group – Stable financials and long-term growth potential in the African telecom market.

Avoids:

  1. Seacom – Very poor financial health and high risk make it a dangerous investment.
  2. Jumia Technologies – Distressed financials and a collapsing outlook make it unsuitable for investment.
  3. Dimension Data – Poor financial strength and uncertain future make it a very risky investment.
  4. Datatec – Weak financials and a negative future outlook make it a bad choice for investment.
  5. MIH Internet Africa – Weak financials and negative future prospects make it a high-risk investment.
  6. Liquid Intelligent Technologies – Weak financials and uncertain future make it a bad long-term investment.
  7. Scancom (MTN Ghana) – Weak financial position and negative future prospects make it a poor investment choice.

So this is it for Africa’s best Software & IT companies stocks. You can learn about many companies fundamentals from this share market blog article which can help you decide which is the best share or investment for you. Best of luck.

Happy Investing

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