German software giant SAP wants to move aggressively into Africa in a bid to double turnover from the continent in the next few years.
The company is targeting revenue growth of between 15% and 25% from Africa within the next three to four years. SAP has operations in the Americas, Europe, Africa and the Middle East, as well as in Asia Pacific.
Franck Cohen, president of SAP's Europe, Middle East and Africa (EMEA) region, says SAP grew revenue almost 20%, to EUR12.4 billion, last year. EMEA contributed just over half of this amount. “It's a significant proportion of the total number,” says Cohen.
SAP has defined its emerging cluster into four regions: Central Europe, northern Africa and the Middle East, Russia and Africa. Cohen says the emerging markets are growing three times faster than the rest of its European operations.
Africa, as a region, experienced double-digit growth last year, says Cohen. “It was a great year for SAP.”
SAP will invest an unspecified amount to grow its footprint and forge partnerships in Africa, says Cohen. “The idea is to develop the business outside of SA in the rest of Africa.”
Currently, SAP has three offices in Africa - two in Nigeria and one in Kenya - and is looking at expanding into French-speaking countries, says Cohen.
SAP Africa MD Pfungwa Serima says the continent will equal SA's revenue in the next two to three years. He notes there is potential in Africa, because of its anticipated economic growth, which will be in high single digits.
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