Africa, adopting cloud computing on its own terms


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Africa, adopting cloud computing on its own terms. An overview of cloud adoption in Africa.
Presented by Ian Duvenage, Head of ICT, Africa, Frost & Sullivan.
September 05, 2013 edition of the IT News Africa Innovation Dinner (

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Africa, adopting cloud computing on its own terms

  1. 1. 1<0000-00> Arica, adopting cloud on its own terms Overview of cloud adoption in Africa Ian Duvenage Head of ICT, Africa Frost & Sullivan @ianduvenage
  2. 2. 2 Africa‟s fundamentals are changing - will you be ready? To take advantage of this long-awaited growth cycle, early entry is vital to ensure competitive positioning Source: Frost & Sulliva GDP Growth 1990‟s 2000‟s FDI Inflows Civil Wars 2.2% 5.5% 1990 2010 1990‟s 2000‟s 15 5 $66.32bn $342.51bn Foreign Debt to GDP 1990‟s 2000‟s 61.8% 37.4% • Agriculture & Agro- processing • Agricultural chemicals • Oil extraction and investment in refining capability • Construction • Transport, energy, water supply/treatment • Healthcare Nigeria Zambia Ethiopia DRC Ghana Note: Countries based on score determined from weighted average of per capita GDP and potential growth, GDP & GDP potential growth, FDI stock and growth, political stability, export and import growth potential, and population size and population growth potential Countries with High Growth and Investment Potential in Africa, 2013-2015 Africa to Average 4.8% GDP Growth in 2013 • Retail • Financial services South Africa Gabon
  3. 3. 3 Diversified In Transition Highly Dependent on Primary Sector Note: Bubble Size Denotes GDP Per Capita (Constant 2005 US$) Which countries are on our growth radar? Country Comparison for Economic Diversity and Export Strength, Africa, 2011 Source: International Trade Commission, World Bank and Frost & Sullivan Angola Burkina Faso Congo, Dem. Rep. Egypt, Arab Rep. Ethiopia Ghana KenyaMalawi Morocco Mozambique Namibia Nigeria Rwanda Senegal South Africa Sudan Uganda Zambia 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 ExportsofGoods&Services(%ofGDP) Manufacturing & Services Value Added (% of GDP)
  4. 4. 4 Global perceptions, Frost & Sullivan public sector survey Improved coordination across all levels of government within the country yields the greatest positive impact on the workings of a government “Which focus areas yield the greatest positive impact on the workings of a government?” Frost & Sullivan, 2013 19% 19% 14% 14% 11% 7% 7% 5% 3% 0% 5% 10% 15% 20% 25% Improving coordination with other levels of government within the country Adopting technological innovations Adopting a 'customer-centric' approach to delivering public services Attracting and retaining a competent workforce Aquiring best practices from the private sector Increasing collaboration with foreign governments Improving mechanisms to collect stakeholder feedback on policies Moving towards evidence-based budgeting Other
  5. 5. 5 Growth in Africa With real GDP growth of 5% in 2012, Africa is the world‟s second fastest growing economy SouthAfrica Nigeria Algeria Ethiopia Mauritius Ranks 19/185 for Ease of Doing Business in 2012 12th fastest growing economy in 2012 Economic growth rate of 8.5% in 2012 Ranks 52/144 in Global Competitiveness in 2012 $114 billion, 40% of resources for 5 year plan allocated to Human Development GDP growth over 6% p.a. for the past decade Some highlights in terms of development and business on the continent World Bank, IMF, LEX Africa, United nations, WIPO, INSEAD
  6. 6. 6 C B Bauxite Uranium Gold Copper Diamonds Oil Gas Timber KEY: Iron Ore Coal C CC CC C C B B B Source: Frost & Sullivan Analysis KEY: Corridors Current roads Proposed roads Current rail Proposed rail Current and proposed ports Resources, Agriculture and Retail are the major drivers of trade in Africa Growth in Africa African Trade Corridors – what is driving their development and why?
  7. 7. 7 ICT Development & Progress 53% - Sub Saharan Africa’s mobile penetration rate 85km/day - Average new terrestrial optic fibre entering service 19% - Sub Saharan Africa‟s internet penetration growth rate 4.5% - Average Economic Growth Rate Across Africa 31% - of the population with access to electricity 2013 Eritrea 10% Ethiopia 19% DRC 23% Lowest Mobile Penetration Markets Burundi 10% Niger 25% Central African Republic 24% Madagascar 26% Malawi 26% South Sudan 29% 2013
  8. 8. 8 DriversRestraints DriversRestraints Reduced Capex Cost Contract Flexibility and Convenience Infrastructure Development High Availability Cloud Uncertainty Regulatory Environment Migration Costs Shortage of IT Skills Denotes long-term impact Denotes current impact Source: Frost & Sullivan. Cloud Adoption – Driver and Restraints
  9. 9. 9 Requirements from Cloud providers in Africa Data storage is high priority, even when power outages occur Data Security to satisfy public and private sector Automated service provisioning for faster uptime Low requirement for skill to set up and maintain Standardisation to ensure ease of use across platform Allow the user to focus on results obtained rather than „how to use‟ Lower training requirements for users and technicians Clarity on the CAPEX vs OPEX optimisation through using the solution
  10. 10. 10 What will drive adoption of cloud in Africa? Application developers to follow the lead of M-Pesa type applications in other industries. Ensuring the un-webbed are exposed to web-based services. 1 Initiative like Apps4Africa that challenges developers to solve some of the real problems in Africa, with good successes to date. 3 Non-government organisations are embracing the mobile cloud as a tool for aiding economic and social development. 2 Adoption of cloud based solutions for e-health, e-education and other government services. 4 Products and service developed for the local culture, needs, infrastructure and financial capabilities 5 Mobile Applications Economic Aid Technology Development ecosystems Government Adoption Needs based development