Tracking the latest digitalisation & technology trends in Africa

The digital landscape in Africa is rapidly expanding, with new technologies and innovations revolutionizing the way companies do business on the continent. In a recent interview on CNBC Africa, Darren Roos, the Global CEO of IFS, discussed the latest trends in digitalization and technology in sub-Saharan Africa. Roos highlighted the exciting potential for growth in the IT industry, with the pace of innovation continually accelerating. He emphasized the opportunities presented by cloud technology and new data centers from hyperscalers, which offer native artificial intelligence services for customers. Companies in Africa are faced with the challenge of balancing the need to deliver business value with the imperative of adopting new technologies to stay competitive. Roos pointed out the dichotomy many businesses face in leveraging these new technologies while focusing on delivering value to their customers. In South Africa, IT spend is predicted to reach 303 billion Rand this year, making it one of the fastest-growing technology markets in the world. Despite this growth, Roos mentioned the irregular cycle of technology adoption in the region, which has both positive and negative implications. While there may be a level of skill immaturity compared to more traditional markets, there is also an opportunity to avoid technical debt associated with outdated technologies. Mobile technologies, including the rollout of 5G, are transforming the digital landscape in Africa and creating new opportunities for businesses to innovate and grow. Across the continent, Roos noted a divide between commodity producers and non-commodity producers in terms of technology adoption. Non-commodity producers are generally growing faster, as they are less affected by the complexities of the African socioeconomic landscape. IFS works with companies in both sectors to help them leverage new technologies to increase revenues, reduce costs, and mitigate risk. Roos stressed the importance of staying focused on the value of technology investments and not getting distracted by the latest trends. Education and skill development are critical factors in driving innovation and growth in African economies. Governments and private companies must collaborate to invest in education and training to ensure a skilled workforce that can support the adoption of new technologies. Roos highlighted the need for continued investment in education to drive long-term change and economic growth across the continent. Despite global macroeconomic challenges, Roos remains optimistic about the growth potential in Africa. With five of the ten fastest-growing economies located on the continent, there is a significant opportunity for companies to invest in technology and drive further growth. In a volatile global economy, Roos emphasized the importance of maintaining positive growth territory and focusing on improving business practices to drive sustainable growth in the region. The interview concluded with a positive outlook for the future of digitalization in Africa, with Roos highlighting the exciting opportunities for companies to innovate and thrive in the evolving technology landscape.