Africa’s tech sector is fueled by rising internet penetration, a youthful population (60 % is below 25 years expected to keep rising from 721 million in 2015 to 1.4 billion by 2063 ( United Nations World Population ). 

Africa is the fastest growing internet economy set to reach $180 billion by 2030. (IFC & Google)

The e-commerce market at $75 billion by 2025. (McKenzie)

The Mobile money constitutes 70% of the global market, set to grow to $1.8 trillion by 2028 (AfricaNenda & McKenzie)

According to the International Data Corporation IDC, the ICT market is estimated to grow to $104.2 billion in 2023 making up 2% of the global ICT market, 8.5% of Sub-Saharan GDP with 4.5% annual growth rate.

Despite hurdles, challenges in infrastructure and regulations, opportunities lie in mobile broadband expansion, mobile tech, fintech, e-commerce, database development, renewable energy, AI, data analytics, cyber security and skills development.

Key points:

Challenges: Low mobile penetration, slow internet, high data costs, and infrastructure deficits. Limited human capital, financing hurdles, and government-private sector disputes hinder progress.

Opportunities: addressing developmental needs in agriculture, manufacturing, electricity, education, healthcare, and service delivery is crucial for success.

Most Technologically Advanced Countries in Africa include:

Kenya stand out as ICT leader showcasing robust growth, innovation, extensive mobile connectivity, 5G technology, and a thriving digital economy.

Tanzania is committed to becoming a knowledge-based economy, offers incentives to ICT firms and invests significantly in infrastructure.

For instance Silicon Zanzibar, a government-backed initiative, offers incentives like 10-year corporate tax exemption, easy work visas, aiming to transform Fumba Town into a Pan African tech hub. In Zanzibar, IIT Madras establishes its first international campus in October 2023 offering Data Science and AI programs.

According to World Economic Forum and Nomad Capitalist, the potential markets include: Nigeria, South Africa, Ghana, Cote d’ivoire, Senegal, Rwanda, Morocco, Egypt, Kenya, Mauritius, Tanzania…

Global Investors from UK, India, China, Japan, South Korea, Singapore…can play a crucial role in Africa’s ICT expansion, addressing infrastructure needs, transforming this sector through innovative solutions and collaboration.

While we do our best to provide accurate information, it’s important to do your market research, due diligence, strategic planning to invest or trade with Africa.