IT firms to reap big in Africa's growth plan
What you need to know:
- Currently accounting for around 45 per cent of external IT spending in the utilities sector, IT services will be in particularly high demand over the coming years, with investments soaring by an annual average rate of more than 14 per cent between 2012 and 2017.
Technology firms are set for more business as demand for IT solutions rises across Africa, International Data Corporation has said.
In Africa, investments in restructuring the power sector, building essential infrastructure, deploying renewable energy (mainly solar), are combining to ratchet up the demand for across the region.
Africa's largely young population along with growing national income levels are seen driving rapid growth in demand in software controlled systems such as electricity, transport, security etc.
This means more opportunities for both software and hardware makers on the continent.
In Kenya recent spikes in terror threats have seen increased investments in IT security equipment by corporates, and the government. Nairobi is currently investing in an integrated traffic control system worth hundreds of millions.
IT spending by utilities in the four major Middle East and African countries (Turkey, South Africa, Saudi Arabia, and the UAE) increased 9.2 per cent year on year in 2013 to total just under $1 billion, according to the latest round of data released by IDC Energy Insights. The figure is set to reach $1.05 billion in 2014.
Currently accounting for around 45 per cent of external IT spending in the utilities sector, IT services will be in particularly high demand over the coming years, with investments soaring by an annual average rate of more than 14 per cent between 2012 and 2017.
The need for more efficient operational modules (e.g., enterprise asset management, billing, data analytics) and heightened security will also propel software spending, with investment in this area set to grow at an average of 9.6 per cent over the same period.
