The impact of the global memory shortage on local pricing
28 February 2026
News
The ongoing global shortage of memory and storage components is continuing to push up technology prices in South Africa, with local distributors feeling the effects of sustained international demand. According to Esquire Technologies, the pressure is being driven less by manufacturing failures and more by a fundamental shift in how memory and storage are being consumed worldwide.
Mahomed Cassim, CEO of Esquire, explains that the rapid build-out of AI-focused data centres, particularly in the US, has become a major driver of the shortage. These hyperscale facilities are absorbing vast quantities of DRAM, SSDs, and high-capacity hard drives, leaving reduced supply for commercial, enterprise, and consumer markets. Global manufacturers have responded with repeated price increases on DRAM and NAND flash, a trend widely reported across the semiconductor industry.
This has translated into higher landed costs for South African distributors. While Esquire absorbed some increases late last year, new stock arriving from late January has inevitably carried higher pricing. Esquire estimates memory component prices have risen by 25% to 40%, with notebooks, desktops, and servers following closely. Pricing pressure is expected to persist into the first half of 2026, with only limited relief from currency movements and little chance of a return to pre-shortage pricing levels.
For more information visit www.esquire.co.za
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