Johannesburg, 13 Jun 2001
At the forefront of many multinationals` lists is lack of quality statistical market information. According to IT and telecommunications research house BMI-TechKnowledge`s analyst Herman de Kock, "The research that has come out of Africa thus far has been based merely on estimates and therefore no real figures exist."
Gary de Menezes, software business manager, Middle East and Africa, Hewlett-Packard, believes that Africa is an extremely difficult region in which to do business at the best of times, and this, compounded with lack of any real understanding of Africa, is a recipe for failure.
The opportunities in Africa, however, remain undisputed. In 1998, real GDP growth was higher in Africa than any other developing region, and specifically Ethiopia, Uganda and Tanzania were ranked in the list of countries seen as attractive destinations for FDI as well as of those expected to make the most progress in creating a business-friendly environment. This assessment emerged from a poll that was conducted jointly by the International Chamber of Commerce (ICC) and the United Nations Conference on Trade and Development (UNCTAD).
The message which emerged from the survey was clear: to quote Kofi Annan, Secretary-General of the United Nations: "The results of the UNCTAD/ICC business survey on the prospects for FDI in Africa are, indeed, encouraging. They show that it is indeed worthwhile for companies to have a closer look at investment opportunities in Africa." Already, companies such as Microsoft, Marconi, AST, Compaq and PQ have reaped the rewards of African investments.
It has become abundantly clear, therefore, that there is a dire need for innovative approaches to accumulating knowledge in Africa, not only to align African comprehension with that of more developed regions but to prepare for future growth opportunities already seen in many parts of this continent.
BMI-T Africa has thus undertaken a comprehensive research project in order to investigate and quantify the market for IT-related goods and services in the East African region. This Multi-Client East African study, which is due for publication in October 2001, will address the issue of inferior and inadequate African business intelligence.
The Multi-Client East African IT study is both an investigation of the socio-polical and economic milieu affecting business in Kenya, Uganda, Tanzania and Ethiopia as well as an extensive analysis of hardware, software and IT services sectors in terms of supply, distribution and demand perspectives. For each of these IDC-defined technology segments, specific revenue data, shipment information, pricing, forecasts and key drivers and inhibitors will be detailed.
Growth patterns differ dramatically throughout the various African countries. The variables of economic growth, regulatory reform and opening of markets for competition make it essential for primary in-country research to be undertaken. This critical analysis into the way business is conducted in each of the four East African countries will allow, for the first time, accurate market sizing, forecasting, competitive analysis, distribution channel analysis and end-user profiles to be understood.
GM of BMI-T Africa Mark Walker believes that the basis of success in African business is through gaining a competitive advantage via first-hand understanding of in-country market structures. His team, which consists of Johannesburg analysts Herman de Kock and Dobek Pater, both highly experienced in African research, as well the team in Kenya headed by Francis Hook, has conducted extensive hands-on research which will serve to provide a realistic establishment of strategic objectives for those companies eager to seize the opportunities in the East African IT markets.
This study will be complemented by a West African IT project, available in December, which will also consist of the comprehensive analysis detailed in the East African IT study.
These reports come at a time when governments and investors in Africa are gearing up to take advantage of the worldwide explosion in information technologies and as Walker explains: "We`ve observed that the market is no longer driven by multinationals merely bringing country offices online but instead are taking a proactive stance on telecommunication use and the consequent uptake of e-commerce and internet technologies." Thus the use of technology to prompt development at all levels of African society, coupled with the rapid growth of these markets, makes it disastrous for any company not to take a serious and informed look at African investment.
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