Business
How African tech startups are powering the continent’s rapidly growing economies
Experts say information and communication technology could help Africa overcome infrastructure inadequacies, satisfy rising consumer demand, boost regional trade and diversify economies, ending reliance on raw materials.
But the problem is affordability. In its 2013 report, the ITU said that, though Africa has one the highest mobile broadband growth rates, services cost between a fifth and half of average income compared to just two to five percent in other developing countries.
In South Africa, the strength of the tech sector reflects the country’s relative affluence. It has produced several billion-dollar companies, some of which have been snapped up by international tech giants.
In East Africa, Kenyan tech has also seen rapid growth. One highlight is mobile money transfer system M-Pesa, launched by the country’s largest telecoms operator Safaricom.
M-Pesa has enabled 67 percent of Kenyan adults to access banking. Its transactions total about US$1 billion per month.
West Africa’s tech sector lags in terms of prominence and investment, experts say. It needs better and cheaper Internet access and broader adoption of smartphones.
In Ghana, a booming regional economy, the number of mobile phone subscriptions roughly equals the population but only 3.5 percent of the population is online, according to Kwaku Sakyi-Addo, CEO of the Ghana Chamber of Telecommunications.
