Africa: The emerging playground for global IT giants

Ethiopia

• Home to over 300 start-ups.
• The IT services industry is expected to reach USD 2.44 billion by 2025, dominated by the BPO sector.
• Government initiatives for Information and Communications Technology (ICT) and a burgeoning tech start-up scene will drive innovation.
• Addis Ababa is the tech hub of the country.

Nigeria

• One of the largest IT markets in the subcontinent, with an estimated projected IT services revenue of USD 2.56 billion in 2025.
• IT outsourcing will be the dominant segment in the industry.
• The Nigerian government plans to introduce digital hubs in 200 rural communities. The expansion of communications and education services is one of its top priorities.
• The Ministry of Information, Communications, and Digital Economy has started promoting paperless correspondence and digital communication.
• Over 3000 start-ups dominate the tech scene, with Lagos, Port Harcourt, Abuja, Nsukka, Kano, and Kaduna as the top IT centers.
• The ROAR Nigeria Hub in Nigeria, Nsukka (UNN), is the first university-based technology hub in West Africa.

South Africa

• South Africa is among the largest ICT markets in Africa, with an expected revenue of USD 6.5 billion in 2025.
• IT services and outsourcing dominate the sector as a regional hub for neighboring countries.
• There is an increasing demand for banking solutions and cybersecurity expertise.
• Cape Town and Johannesburg are the key centers for IT, driven by Fin-Tech demand; these host over 60% of the start-up scene.
• AI adoption has increased to 51% among local tech-developers.

Egypt

• Information and communications technology has led to growth of over 16% in recent years.
• The government’s ‘Digital Egypt’ strategy aims to improve digital connectivity, content, and communications.
• Major tech companies are enhancing their talent capabilities, especially in Cairo and Alexandria.
• The IT services market is projected to reach USD 1.82 billion, led by outsourcing and offshoring domains.
• Egypt’s startup ecosystem ranks number one in Northern Africa.

Tanzania

• A young population, internet access, and the government’s drive to build fintech and e-commerce have led to a surge in IT business.
• From 6% in 2012 to 37% in 2022, there has been an upward trend in the tech sector.
• Dar es Salaam leads as the IT hub.
• Tanzania attracted over USD 53 million in investments in 2021.
• The IT services market is expected to reach over USD 617 million, led by IT outsourcing.
• The government is attracting global talent by implementing tax benefits and easy visa processes.

DR Congo

• The e-commerce revenue is expected to reach
  USD 59.35 million.
• Digital payments and mobile communications are hot areas for investment and info-tech development.
• Kinshasa, Goma, and Lubumbashi are centers for digital transformation with over 300 start-ups.
• Silikin Village in Kinshasa is the largest IT innovation and entrepreneurship hub in DR Congo.

Kenya

• Driven by low-cost, high-impact technological innovation, the IT services market is poised to generate USD 856 million in revenue.
• Nairobi is the leading tech hub, with government initiatives like i-Hub, Nailab, and Konza Tech City to attract global investments.
• Fin-tech, agri-tech, and health-tech are major players with high demand for AI and Machine learning, cyber security, cloud computing, robotics, and DevOps.
• MPesa, Twiga Foods, and BRCK are major tech start-ups.
• Digital Kenya 2030 by the government aims to drive the digital economy, e-commerce, and job creation.

Rwanda

• IT services and aoutsourcing are to contribute USD 97.7 million.
• Investment in ICT and space technology is increasing, with a projected consumer spending on ICT equipment of USD 98.26 million in 2025.
• Under the Rwanda Smart City Master Plan, the Kigali Innovation Centre (KIC) is a USD 2 billion investment to establish a thriving IT ecosystem. Kigali is home to over 250 IT hubs.
• The Rwanda Innovation Ecosystem Map aims to connect entrepreneurs, businesses, investors, and entrepreneurial support organizations.
• Zipline and SafeMotos are among the most popular start-ups.

Ghana

• Ghana’s vibrant start-up scene with over 500 companies is leading digital growth in Africa.
• Accra/Tema, Kumasi, Takoradi, iSpace Foundation, and Kosmos Innovation Hub are hubs for digital innovation and talent.
• IT services and outsourcing are expected to generate over USD 675.13 million.
• Ghana Startup & Innovation Bill, the National Entrepreneurship and Innovation Programme (NEIP), and the YouStart program by the Ghana Enterprise Agency are government interventions for promoting the digital revolution.
• Companies like MTN, Vodafone, and Tigo are capitalizing on the growing demand for mobile payments and financial services.
• The country Ranks 4th in the digital ecosystem in Western Africa and Digital Public Infrastructure (DPI) is an enabler of enterprise and talent development.

Ivory Coast (Côte d’Ivoire)

• The smartphone market and services lead the IT sector with over USD 1 billion in revenue.
• Software development, e-commerce, and telecom, driven by digital and internet connectivity, are key to scaling up opportunities.
• The government is investing in a 7000 km fibre optic network named ‘Information Superhighway’ to empower citizens with digital connectivity and improve public service.
• Abidjan leads the start-up scene; notable examples are ZEBOX Innovation Hub, CinetPay, Anka, and Africa Works.
• Agritech is positioned to be a high-growth sector.