Lise Hagan, research manager: software & IT services: Africa at IDC, expects the appetite for ICT in sub-Saharan Africa to increase strongly in 2013, driven by growing economies like Nigeria, Ghana, Kenya, Tanzania, Uganda and Angola. While there's inconsistent growth across different countries, African ICT markets, excluding South Africa, are expected to grow significantly.
"Major economies such as Nigeria and Kenya contributed $3.82 billion in 2012 and will grow to $4.94 billion by 2017. South Africa, which is by far the largest sub-Saharan African ICT services market, still remains the powerhouse of the continent, by contributing $13.24 billion or 46.5% of the total market in 2012, even with market inhibitors such as economic uncertainty and government spending cuts," she writes.
Hagan notes the relatively weak South African economy and an increasingly crowded and competitive domestic market will encourage more established local organisations and ICT services providers to seek opportunities elsewhere in Africa. "In order to go to market quickly, investments and efforts in creating stronger partner ecosystems in these markets will be inevitable. The region will witness more co-operation, acquisitions, and partnership-led strategies between local, regional and multinational organisations," she adds.
IDC also suggests that mega-projects in construction and government will be significant drivers for the growth of ICT services in the region. "Increasing ICT adoption in key sectors such as banking, telecoms, and government will accelerate [this] growth. This is coupled to large-scale infrastructure projects taking place in parts of sub-Saharan Africa, the aggressive expansion plans of Nigerian and Kenyan banks, and increasing foreign direct investment into Africa," comments Hagan.
South Africa still remains the powerhouse of the continent, by contributing $13.24 billion or 46.5% of the total market in 2012."
The technologically mature sectors like banking and telecoms will take the lead in big data analytics through proof-of-concept projects. Public and private cloud will gain momentum. South African organisations will continue to invest discretely in technologies that can bring cost reduction, optimisation, and higher efficiency, she elaborates.
"Telcos will consolidate ICT operations, and expand and verticalise services offerings to capture new opportunities. Continuously falling average revenue per user and high telecoms penetration across sub-Saharan Africa will further force telcos to explore avenues of inorganic growth and portfolio expansion."
IDC predicts the biggest stories in 2013 will concern South African and other sub-Saharan African organisations making use of technologies such as cloud, mobility, and analytics to increase efficiency in supporting their local and geo-expansion plans in other African countries.
First published in the July 2013 issue of ITWeb Brainstorm magazine.
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