Sub-Saharan technology distributor Altron Arrow says SA's AI market is on the brink of rapid expansion, presenting a major growth opportunity. The company recently acquired the distribution rights for ASUS AI GPU hardware.
Despite persistent challenges such as high costs, a shortage of skilled professionals and difficulties in sourcing advanced hardware, Altron Arrow believes the local AI ecosystem is steadily evolving.
To help address the skills gap, the company has appointed AI consultant Ivan Coetzee to spearhead efforts in developing local expertise capable of deploying AI infrastructure effectively.
“This announcement signals a major leap forward for the South African AI landscape,” says Coetzee. “With ASUS’s cutting-edge AI GPU technology now available through Altron Arrow, South Africa gains direct access to the kind of infrastructure that's driving AI innovation globally.”
Renato Martins, MD of Altron Arrow, adds: “We want businesses, entrepreneurs and educational institutions to have access not only to the hardware but also the expertise to make AI adoption a reality.”
“We’re now in a position to bring those same breakthroughs directly into South African businesses, campuses and innovation labs,” Coetzee continues. “It’s a step towards real technological sovereignty – not just consuming AI, but creating with it.”
Martins believes that with infrastructure now in place, South African cities like Cape Town and Johannesburg could become just as influential in global AI innovation as traditional tech hubs such as Silicon Valley.
Distribution challenges persist
However, the path to market growth is not without its obstacles. Werner Joubert, commercial SYS director at ASUS South Africa and SADC, notes that chip shortages and port congestion remain significant concerns for supply chains.
“To overcome these issues, ASUS offers multiple hardware configurations tailored to various end-user needs,” says Joubert. “We’ve also increased our investment in air freight – particularly for laptops – to mitigate shipping delays.”
He adds that while air-freighting desktop PCs and all-in-one devices remains costly, ASUS evaluates each opportunity on a case-by-case basis and occasionally opts for faster transport when justified.
Another key challenge lies in after-sales service, according to Joubert. “End-users expect minimal to zero downtime, putting immense pressure on resellers. With tight margins, many resellers struggle to absorb the cost of extended vendor warranties, which are critical for customer peace of mind.”
Onsite service has become the industry standard, but affordability remains an issue for many businesses. In remote areas, users often maintain backup devices, anticipating potential delays in support. To address this, ASUS aligns its pick-up, repair and return services with clients’ contingency set-ups.
Joubert also highlights the growing threat of so-called "ghost" e-tailers – online sellers who undercut legitimate resellers by applying minimal markups on distributor pricing. These sellers often win on price but provide no post-sale support.
“Many end-users don’t understand the added value resellers bring after a sale – services like network administration, system set-up and ongoing technical support,” Joubert adds. “That’s something ghost sellers simply don’t offer.”
Emerging technologies such as AI, 5G, blockchain and renewable energy solutions are expected to have the biggest impact on industries in the next five to 10 years.
Joubert advises companies to invest in R&D, upskill their workforce and foster a culture of innovation.
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