With South Africa’s unemployment reaching 8.3 million people as of mid-2024, losing developer talent to international markets is more than a brain drain – it’s a serious threat to the country’s economic future.

This is based on insights provided by OfferZen’s 2024 State of the Software Developer Nation report.

As global demand for tech skills grows, South African businesses urgently need to retain local software developers, leverage data-driven strategies, and remain competitive. According to Ferdinand Steenkamp, co-founder of data company Tregter, businesses must rally together to prevent this critical talent drain.

“Our developer workforce is world-class, and losing them due to outdated policies and lack of data infrastructure would be a disaster,” says Steenkamp.

“South African companies need to wake up to the power of data. Data-driven innovation can unlock immense value, especially in retail, where intelligent insights into customer behaviour, supply chain optimisation, and inventory management are critical. But without skilled developers to build these solutions, we’ll be left behind in the intelligence age.”

The 2024 State of the Software Developer Nation report reveals the changing priorities and motivations of South Africa’s tech talent.

While developers seek remote working flexibility, a majority (64%) would leave their jobs if forced back into the office. Combined with weakened salary growth and limited career development opportunities, these issues fuel an exodus of tech talent.

“Companies need to align with what developers are asking for,” Steenkamp says.

“Flexible work arrangements, career growth, and competitive compensation are no longer optional – they’re essential to retaining our best talent.”

In the retail sector, companies that invest in data analytics are already seeing results.

Shoprite, for example, has embraced data-driven strategies to drive customer loyalty and increase profitability. Its in-house data consultancy, ShopriteX, leverages artificial intelligence for dynamic pricing and personalised shopping experiences, a move that has earned the company a top spot in the 2023/24 Loyalty Whitepaper by BrandMapp and Truth.

“Shoprite’s success is a testament to the power of data,” Steenkamp says. “It’s proof that integrating data into every step of the value chain can create competitive advantages that build customer loyalty and boost the bottom line.”

Yet, despite such examples, many South African companies are lagging in their adoption of data infrastructure, leaving them vulnerable in a global economy that values data-driven decisions.

“If businesses here don’t follow suit, they risk falling behind,” Steenkamp warns. “The intelligence age waits for no one. The sooner we embrace a data-centric approach, the better positioned we are to compete not only within South Africa but also on the global stage.”

Steenkamp says data does more than drive profit – it empowers leaders with insights to anticipate trends and improve operational efficiency.

Retailers with robust data systems can adjust to market demand, save on costs, and optimise their entire value chain, creating resilience even during challenging economic times.

“Investing in data isn’t just a trend, it’s a survival strategy. Businesses that fail to adopt these tools risk becoming obsolete,” he says.