The government-driven investment in a fibre optic national backbone has placed Kenya among the favourite investment locations for multinationals seeking a foothold in Africa.
Business Monitor International (BMI) — a leading, independent provider of proprietary data, analysis, ratings, rankings and forecasts covering 200 countries and 24 industry sectors — says Kenya is getting noticed worldwide for its nascent opportunities.
South Africa’s large economically endowed population makes it an attractive hub while Nigeria is also getting similar scores. But Kenya is mentioned as the new kid on the block for its emerging opportunities in oil and power as well as information technology.
Kenya’s tech-savvy young population has in the past been identified as the game changer for the IT industry due to keenness to adapt and use new technology in effecting payments and various transactions commercially.
In its latest analysis BMI says Africa’s IT sector remains one of the fastest growing globally, albeit from a low base despite the growth that is mainly driven by governments and large companies.
“(The year) 2014 will witness heightened activity as government-led IT initiatives such as e-governance and schools computerisation projects, investments in Next-Generation Network (NGN) infrastructure, and strong private consumption growth take root,” BMI says.
It expressed optimism in the increase in adoption of IT solutions by small and medium-sized enterprises and consumers owing to improved access to high-speed data networks and the availability of affordable devices locally.
Kenya may also greatly benefit from introduction of low priced internet-ready devices that could see more companies embrace online-based payment for goods and services.
On this front, Nakuru leads the way with last week’s launch of free Wi-Fi for residents living within a 10 kilometre radius.
BMI said it expected the uptake of cloud services and the growing threat of cybercrimes to boost demand for IT security solutions in the region.
Qatar emerged top in attracting IT investments in the run-up to the 2022 FIFA World Cup.
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