Register now for Fin24 Dashboard and get access to portfolios, watchlists, financial comparison tools, and a whole lot more to help you achieve your financial goals.

Data provided by McGregor BFA
All data is delayed
Loading...
Where am I? Home
 
Prices are delayed by 15min.
Join the Fin24.com conversation about JSE-listed stock by using every time you tweet.

Africa's booming ICT sector

Feb 01 2010 16:40

Related Articles

African telcos: fresh growth boost

Vodacom: presidency responds

ICT beats the slump

IT firms expect TV switch boost

Didata buys Moroccan stake

Zambia an investment model: Zuma

 

Top Stories

Greece at last approves austerity measures

Feb 13 2012 07:58

Greek lawmakers have approved a new round of drastic austerity measures after a long day of street battles between police and protesters left dozens injured.

What to do with R200K?

Feb 13 2012 07:41

A reader gets advice on quick returns on a lump sum.

Financial mess 'unintended', says Nedbank

Feb 12 2012 15:59

Moral hazard, financial weapons of mass destruction, a huge mess - these were the words used by a founder member to sum up the collapse of the Pinnacle Point Group.

 
Share Share line Print

Addis Ababa - African leaders meeting at a summit in Ethiopia are devoting much of their time to discussing how they can boost information communication technology (ICT) on the world's poorest continent.

Here are a few questions and answers about the sector:

What's the state of ICT in Africa?

Levels of access to modern telecommunications, network capabilities and coverage, as well as investments in the sector, are as diverse as the 53 member states of the African Union.

Mobile penetration in the continent stands at 42%, compared with less than 8% just 10 years ago. The continent posted the highest growth of new mobile subscriptions in the world over the last five years.

Connections to the internet stand at 8% of Africa's 1 billion people, and less than 3% have access to broadband. Egypt, Tunisia and Rwanda are among the countries praised for creating policies geared towards pushing their economies into the digital information age.

Why the interest now?

"It is a profit-making business. We don't need charity for this. We don't need help, we don't need assistance ... we are comfortable in the ICT sector," said Hamadoun Toure, head of the UN's International Telecommunications Union.

Experts say there is enormous potential for growth, and firms have been racing to provide internet connections to the 92% of Africans who are not yet covered.

They are also eyeing other data market segments which have changed business and posted astonishing growth rates.

M-pesa, a mobile phone-based money transfer service, pioneered by Kenyan operator Safaricom in 2007, has seen its users rise to 8 million.

International organisations that have long fretted about corruption in Africa have also received a helping hand.

"In Kenya, ICT slashed the number of days it took to register a vehicle from 30 to one, as well as cutting off avenues for greedy hands," said World Bank President Robert Zoellick.

Who are the major players?

Safaricom is east Africa's largest company by market value and profit. South Africa's MTN, which last year attracted a failed tie-up bid from India's Bharti Airtel, is a big player in several African countries.

Active foreign firms include Britain's Vodacom, France Telecom, Kuwait's Zain and India's Essar. Zain has assets in countries ranging Zambia to Ghana.

A consortium led by a Mauritius-based private equity firm owns the $700m SEACOM, a cable which links several countries with India, Europe and Asia. Government-fronted undersea cables include TEAMS and EASSY.

What are the risks?

Faced with emerging challenges from an emerging sector, governments have reacted in different ways. Kenyan authorities faced stiff opposition from media owners last year when they amended laws to take cover relatively new offences like sending abusive SMS text messages and online fraud. Critics accused the government of trying to gag the media.

Operators on the continent also routinely complain of unfair government levies, while the issuing of too many operator licenses in a single market can also put off investors.

- Reuters

 
 
Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
Facebook still a closed book in China
Feb 08 2012 16:59

Mark Zuckerberg wants to ''friend'' China's massive market but how far is he prepared to go, and against what competition?

Attie

Whilst doing my regular book browsing at Exclusive Books just before Christmas 2011 a book with the simple title “My Book” caught my eye. Paging through the book I saw nothing else but wild life photographs with accompanying quotations by either the author or another well-known person. ... Read their blog...

Recently updated
Podcasts
The Sishen saga

Legal expert Peter Leon on the increasingly complex legal wrangle over the Sishen Iron Ore mine. Time: 8:17 Listen Here...

Before you list

Is the clarion call of the JSE calling? Listen to Fin24’s expert panel discussion before you list your small business. Time: 17:29

Compare and Buy

Compare and apply for hundreds of financial products from many suppliers.

Credit cards Medical aid Current accounts Think Money

Money Clinic

Money Clinic Do you have a question about your finances? We'll get an expert opinion.
Click here...

Loading...