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Africa to attract more ICT investment in 2014, IDC says

Rebecca Wanjiku | Jan. 2, 2014
Adoption of data analytics and cloud services and infrastructure investments are expected to be main drivers of growt

Investments in ICT are expect to increase in 20144 in Africa as both public and private spending rises and local content businesses partner with larger operators and tech companies, according to IDC.

Adoption of data analytics and cloud services is expected to be a main driver of growth on the continent, IDC said in a year-end report.

"In the year ahead, business models based on mobility, internet and cloud will grow quickly but local constraints will cause this to be in fits and starts and regional pockets; the most important events in 2014 will continue to cluster around growth and innovation, built on mobile devices, cloud services, social technologies and Big Data analytics," IDC said.

Africa has had massive growth in mobile phone usage and IDC expects mobile technologies to catalyze investment, with mobile enterprise applications a leading priority.

Governments will also invest in fiber-optic cables, public services, content and governance and compliance oversight to ensure the security of transactions online.

Countries such as Kenya, Ghana, Rwanda, Tanzania, South Africa and Nigeria, in cooperation with international developmental agencies, academia and ICT vendors, have made considerable investments in ICT infrastructure and IDC expects this to benefit local startups that have had problems sustaining and running successful businesses.

One mega project is the $14 billion Konza City initiative in Kenya, expected to drive local and international ICT business in East Africa. There are other smaller projects in other countries including Rwanda, Botswana, Cameroon, Nigeria, and Ivory Coast, that IDC expects to gain traction in 2014.

In the last five years, countries have rolled out fiber optic infrastructure and IDC expects a shift in the focus from undersea cable to terrestrial fiber rollout in 2014. Telecom service providers are expected to expand their current fiber infrastructure to offer last mile, high-end connectivity to enterprises.

Companies such as Google and Liquid Telecom have undertaken extensive in-country fiber rollout across the continent, and IDC expects a surge in the supply of last mile fiber access in the region.

"IDC expects to see related ICT investments in Information Security consulting, datacenter build-out, stimulating infrastructure investments and early use cases of integrated systems, along with hosted services such as hosted infrastructure services and hosted application management," said the paper, which is based on research conducted during IDC's CIO Africa summit.

IDC also forecasts content-oriented online to grow, anchored by bandwidth affordability, competitive local hosting services and enhanced infrastructure security.

"The online subscription based video streaming service Wabona based in South Africa, and based in Kenya are two such examples; IDC expects more such business to emerge in 2014 giving a significant boost to the digital media industry in Africa," IDC said.


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