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 (www.innovationdinner.co.za)

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Arica, adopting cloud on its own terms
Overview of cloud adoption in Africa
Ian Duvenage
Head of ICT, Africa
Frost & Sullivan
@ianduvenage

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
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
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
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
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
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
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
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

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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