Substantial growth in spend on ICTs and cloud computing expected in AME

22 November 2011 |

Africa can expect to see substantial growth in its spend on ICTs and potentially cloud computing, with major increases coming from telecoms, government, the financial sector and extraction, according to Pyramid Research.

The continent’s GDP stands at almost $21 trillion in 2011, growing at a CAGR over the next five years. Pyramid Research estimates that any anywhere between 10% and 50% of this GDP, depending on the country, is generated by these verticals alone, making it a very addressable market.

Pyramid believes that new developments are changing the business landscape. African and Middle East businesses, which generate 42% of the region’s fixed telecoms service revenue, are growing fast.

This driven by the formalisation of small businesses at the base of the pyramid, as well as investment in connectivity by large enterprise entities and foreign multinationals.