Disputes over software failures, data breaches and intellectual property rights are clogging courtrooms and arbitration panels. This litigation boom exposes a critical gap in SA’s legal framework, argues Roger Wakefield, of Werkmans Attorneys.

News24 reports that SA’s digital transformation is rewriting the rules of its economy, propelling the nation into a tech-driven future.

With the IT market forecast to hit $24.5bn by 2026, growing at a brisk 7.2% annually (Statista, 2024), industries from fintech to healthcare are reaping the rewards of innovation. Yet, this technological surge is spawning a less celebrated byproduct: a dramatic rise in IT-related litigation.

This litigation boom exposes a critical gap in SA’s legal framework, demanding a bold rethink of how the nation handles technology disputes.

In 2023, a major local retailer sued a global software provider for R500m after a botched enterprise resource planning system crippled its operations. 

Such cases, rooted in poorly drafted contracts or unmet service-level agreements, are becoming common.

In addition, data breach lawsuits are skyrocketing, fuelled by the Protection of Personal Information Act of 2014.

The Information Regulator reported over 1 200 breach notifications in 2024 alone, with a high-profile bank facing a R1bn class-action suit after a 2023 hack exposed 1.5m customers’ data.

IP disputes are also surging, as seen in a 2022 case where a fintech startup battled a R100m claim over alleged code theft.

These cases aren’t just legal skirmishes – they’re existential threats to businesses navigating a digital economy.

Full News24 report