For good reason, digital services outsourcing is becoming a huge market within the African IT ecosystem. While the market is already competitive and there are challenges in growing operations in the Sub-Saharan region; tech companies are ensuring that a large portion of the service exports belong to digital technologies.
This growth is closely tied to the decentralization of IT services, which is proving to be a turning point for the region’s digital economy. Industry segments such as retail, healthcare, real estate, agriculture, and finance, which were traditionally never part of the export services market in MENA, are becoming increasingly so as a result of digitalization.
There is A Long Road Ahead
One of the key difficulties that lie ahead for African IT services exporters is the lack of good ICT (Information and Communication Technology) infrastructure. But, the government is ready to support this industry. As there is already pressure to increase jobs in the market and also reduce reliance on traditional agriculture, IT exports have turned into a boon for the government.
African Continental Free Trade Area (AfCFTA) is another important player pushing the boundaries of this fledgling market. It facilitates a bigger market reach for African companies and also incentivizes the government to bolster digital trade. The digital trade protocol founded jointly by the AfCFTA and the local governments in the region is helping create a harmonious ecosystem for digital export entrepreneurs.
Some of the key players arising out of the region include Ghana, the Democratic Republic of Congo, Nigeria, Kenya, South Africa, Zambia, Uganda, and others. The current market share of digital technology exports in these countries ranges anywhere between 4% to 10%, and it is set to grow much higher in the not-so-distant future.
Of course, the smaller countries will take longer to hit the strides as bigger African nations such as Nigeria and South Africa are able to easily access 5G technology and next-gen digital networks. But, as they say, a rising tide raises all boats; and so will be the case for MENA’s burgeoning IT exports sector.
