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Sub-Saharan Africa IT Market Valued at US$14.5 Billion in 2010, says Springboard Research

Published On: 2/25/2011
Geography: Middle East/Africa
Technology: General IT Market

Dubai, February 25, 2010 – The IT market in sub-Saharan Africa is estimated to be worth US$15 billion in 2010, and is forecast to grow at a Compounded Annual Growth Rate (CAGR) of about 10% from 2010-2013, says the latest series of reports titled "IT Opportunity in Africa" from Springboard Research, a leading innovator in the IT Market Research industry. The series of reports includes extensive qualitative and quantitative information on more than 20 individual African markets and numerous sub-regional reports.   

IT Spending Sees Recovery in 2010

Springboard Research notes that while growth in most countries has not rebounded to levels seen before the global financial crisis and subsequent recession, the levels of growth seen in 2010 are by and large much stronger than what was recorded in 2008 and 2009.  Indeed, economies based largely on the export of commodities saw a return to double digit growth in IT spending.  For example, Nigeria, which was hit particularly hard by the drop in oil prices and the near collapse of its financial sector saw double digit growth in total IT spending for 2010. “This can be attributed to higher than expected oil revenue and large public sector investments in the run up to the 2011 elections”, explains Summer Hamad , Senior Research Analyst for the Middle East & Africa (MEA) at Springboard Research.  However, the fastest growing market in the region was Angola, another major oil exporting country and a relatively less developed market with enormous growth potential.

Another positive example from a non oil-exporting economy comes from Rwanda.  Springboard Research estimates that the IT market in Rwanda has grown by about 16% in 2010.  “Major investments in Rwanda’s telecommunication infrastructure and education system helped Rwanda continue its strong growth trajectory”, says James Erickson, Research Manager for the MEA region. “The Rwandan government is serious about developing its IT industry and its efforts to put hundreds of thousands of computers in schools, improve bandwidth capacity and establish one of the continent’s only datacenters have helped lay a strong foundation for continued growth and development."   

Clouds on the Horizon 

The report also found that the rise of the Cloud in the region will help contribute to higher growth in the Services segment.  However, Springboard Research's forecasts show that the full impact of this trend is still a year or more out.  Adoption of Cloud Computing and other bandwidth intensive emerging technologies have long been hindered from prohibitively expensive bandwidth and inadequate capacity.  “This is beginning to change, but the full benefits of SEACOM, EASSy, Main One and other major fiber optic cable projects will take another year or two to be fully realized,” said Fred Giron, Vice President for India, Services & MEA.  “Until then, the growth in the Cloud Computing market will remain inhibited by expensive, unreliable and inadequate bandwidth”, he continued. 

Indeed, the desire or need to wait for the benefits of improved connectivity to reach these markets can be seen in Springboard Research's “Cloud Computing: Market Dynamic in MEA” report, which surveyed 700 end-users in seven countries, including 200 in South Africa and Nigeria.  The report found that while only 18% of Nigerian respondents had adopted Cloud Computing, 53% had plans in place to adopt the technology in their organization.  The survey also found that almost half of all Nigerian planners will adopt only in the next 12-18 months. 


About these Reports

The Springboard Research series of reports – “IT Opportunity in Africa” – analyzes the market dynamics and opportunities of the IT market in 46 sub-Saharan African markets. These reports highlight economic conditions prevailing in the countries and provide systematic analysis of the key market opportunities for vendors in the countries. 

The Springboard Research report - “Cloud Computing: Market Dynamic in MEA” – provides an in-depth understanding of the Cloud Computing market in MEA and focuses on Cloud Computing-related awareness and adoption across seven countries. The report also highlights Cloud-related market trends and key dynamics in MEA to better address market opportunities. 

About Springboard Research

With visionaries others pursue, methods others neglect and ideas others don’t consider, Springboard Research not only seeks to lead an industry - we seek to transform it. Leveraging our pioneering research model and industry thought leaders, Springboard Research provides greater insight, analysis, and innovation specific to global emerging markets. Working with leading technology vendors, IT professionals, and local channels, Springboard Research helps our clients lead, rather than follow, market trends.

Springboard Research has a global presence with research centers in Australia, China, India, Japan, Malaysia, Pakistan, Singapore, the UAE, and the US. We have been acknowledged as an emerging leader and for the last three years been named a “Rising Star” in the global IT market research industry by Outsell, the leading research and advisory firm for the information industry. For more information and access to Springboard’s research, please visit www.springboardresearch.com

Media Contacts

Jeanne Chai, Marketing Manager
Springboard Research
[email protected]  

Fred Giron, VP, IT Services Research
Springboard Research
[email protected]

James Erickson, Research Manager, Middle East & Africa     
Springboard Research

[email protected]

Summer Hamad, Senior Research Analyst, Middle East & Africa   
Springboard Research

[email protected]
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