Asian tech firms seeking opportunities in Africa

Posted on April 13, 2014 01:21 pm

Asian ICT Industry firms are focusing on opening opportunities for the Asian information-technology industry in Africa, especially in East and Southern African countries with their high-potential market. The Asian companies aims to help IT firms penetrate the African market via a software and solutions approach through working with local partners. The goal is to help them to establish a presence by providing software solutions, such as cloud-based platforms, rather than selling only hardware and there is also a need for customization and localization according to a contact close to the plan. For critical systems, the Asian firms have learned that customers require software and solutions installed in their offices rather than cloud-based systems. In the coming months, the Asian companies will host a networking session in various African cities. Africa’s IT market is growing at an average 30 per cent per annum with Telecommunications and banking being the priority industries with demand for IT investment, followed by the real sector including manufacturing, healthcare, tourism and logistics.

Africa has more than 300 banks requiring IT to enhance their core banking and Net-banking systems according to the study Asian firms conducted last year.IT spending in East African countries alone is expected to amount to tens of millions of dollars, mostly in IT infrastructure as well as servers and storage. The personal-computer market in 2013 was estimated to be three million units, of which 2,000,000 were notebooks and 100,000 desktop PCs. Africa is home to 3,000 IT firms, mostly in capital cities and about 60 per cent are hardware firms, 25 per cent IT services and training and 15 per cent software companies. A friend who is involved in the consultancy work with more than 100 Asian firms revealed to me there are lots of opportunities for everyone involved. They plan to work through IT-related national associations as well as business and industrial associations. Also, they will use their connections to match Asian IT providers with potential customers. Africa ICT industry this year is expected to expand 23 per cent, as IT investment has been increased in the whole real sector as well as in the telecom and banking industries and the public sector.

Contador Harrison