Rising tariffs drive demand for renovated technology

by AI DeepSeek
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Johannesburg – As US tariffs on technology imports expand, it has sent shockwaves through the disposition of IT assets (ITAD) and renovated IT sector in South Africa, emerging as a strategic lifeline for cost-oriented companies.

With new hardware costs surge amidst international trade tensions, local businesses are increasingly turning to high-quality, renovated technologies to reduce and maintain operational resilience.

Recent US policy changes have imposed significant tariffs on imported technological components, prompting major Chinese and Vietnamese manufacturers to raise prices for key components such as memory chips by up to 15%.

This global price inflation has worsened domestically by a 0.5% VAT increase, which fell 3% in early April alone, and weakened land, further narrowing the budget.

“As businesses tackle rising operating costs and currency volatility, many CIOs are extending the lifecycle of their IT assets, delaying the update cycle and exploring renovated alternatives,” said Wale Arewa, CEO of Xperien.

“This is to provide ITAD with both financial and environmental dividends not only as a sustainability feature but also as a strategic business enabler.”

The renovated IT market offers a compelling value proposition amidst these economic pressures.

Cost reduction: Companies can achieve up to 70% savings compared to the purchase price of new equipment, allowing them to free up capital for innovation and growth. Sustainability Impact: Extending the device lifecycle reduces e-waste, contributes to significant carbon footprint reductions, and enhances ESG performance. Wide range of accessibility: Renovated solutions open doors for remote workers who may be priced from small businesses, educational institutions and new technology markets, ensuring continuity and competitiveness in all sectors.

As South Africa's consumer base is increasing financial pressure, it is more than a halt, a key enabler of digital inclusion and productivity.

By partnering with Xperien, organizations have access to rigorously tested enterprise-grade devices backed by comprehensive data sanitioning, warranty support and flexible lifecycle management services.

“It is unlikely that the uncertainty in the global supply chain will fade anytime soon,” adds Alewa.

“By adopting ITAD and renovations today, South African businesses can turn disruption into opportunities, ensuring reliable technology at cost while advancing sustainability goals.”

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