As I stated in the previous article, the tech industry in Africa has been growing at a tremendous rate yearly. The tech boom hit Kenya before most African countries. Kenya’s capital, Nairobi is known to some as the silicon savannah. From 2007-2010 the tech industry in Kenya started to grow and some people attribute this growth to the creation of M-Pesa (a mobile money platform) in 2007. M-Pesa is being used currently by over 20 million Kenyans. It has benefited from government funding just like other private ventures. Kenya, South Africa and Botswana are seen as pioneers in the African tech industry.
Fiber optic cables were placed on the oceans floor between the United Arab Emirates and Mombasa a Kenyan town. This brought high speed broadband to 5 East African countries. For years there has been a lack of opportunity for young entrepreneurs around the continent but I am glad to say that this is changing. According to the Newsweek.com venture capitalist funding in Africa’s tech industry is said to rise to $600 million by 2018. There are African Technological summits being held annually, that help to bring together prominent companies and people in the secotor. African’s in diaspora are starting to see opportunities in the Sector. I will advise Africans (black people) worldwide to invest in the tech sector in Africa. This could be by buying shares or being more hands on and working directly with companies.
The founder of the Silicon Valley, Dave McClure called the African tech industry the “next great emerging opportunity”. The tech innovations are starting to influence other sectors such as banking, healthcare, entertainment, transportation, fashion and education. This is going to lead to a new era of Africa’s development. Commercial drone delivery is said to take off in the near future.
Kenya’s iHub is moving into being 100% self financed through investors and operating revenue. Other African tech companies are beginning to follow suite. Relying on government funding could possibly have a detrimental effect on the African economy. The tech industry requires a lot of money and this could mean a reduction in the amount of money available to other sectors such as healthcare, infrastructure, education etc.
Please let us know what you think about the tech industry in Africa, by leaving a comment.