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Africa Is the Last Great Investment Frontier

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Seven African Countries Great for Information & Communications Technology Investment

For the past decade, the African continent has had a remarkable economic growth. The factors favouring the economic growth include leadership reforms in most countries and creation of an enabling environment. There are numerous investment opportunities in different sectors in the various countries which have not been fully exploited. It is because of these reasons that many international investors have penetrated the African market to take advantage of these opportunities. They have as a result raked huge profits from their investment.

It is true that there are many challenges to investing in Africa. These challenges hinder many potential investors from investing in Africa. Many people perceive the African continent as poor and with little to offer. However, the successful investors in the African continent have proved that the best investment opportunities lie where perceptions differ from the reality. The ICT sector provides one of the best opportunities for investment. The revolution in telecommunications means that there is a huge demand for PCs, laptops, mobile phones and fibre optic cables. Although many Sub-Saharan African countries have done a lot to build modern ICT infrastructure, the technology gap still exists.

Most investment in this sector comes from private sector. Governments usually set regulatory frameworks that regulate the activities of the industry. Many African countries have comprehensive regulatory framework and agencies that make the business opportunities in this area more attractive to international investors.

Some large African economies such as South Africa, Kenya and Nigeria already have a significant share of foreign direct inflows in the ICT sector. This article presents seven emerging African economies with real potential for investment in the ICT sector.

1. Rwanda for Information & Communications Technology Investment

Rwanda was recently ranked fourth in Africa in networked readiness rankings. In the rankings, the country is only behind South Africa, Mauritius and Morocco. This is not surprising as the three countries are far much ahead of Rwanda in terms of economic development.

The country is the 3rd easiest place to do business in the Sub-Saharan Africa according to the World Bank Doing Business Rankings. The government of Rwanda has launched an ambitious strategy for ICT development in its Vision 2020. The sectors targeted by the plan are education, financial and healthcare industries.

Rwanda has developed a business environment that is rich in innovation, and the ICT sector is well supported by the government. The government has set up many ICT schools and has developed an ICT park with the aim of promoting growth in this sector. The kLab is the country’s ICT hub full of young talents, and it is a fantastic platform for the growth of the ICT sector in the country.

2. Cameroon for Information & Communications Technology Investment

The Central African country has a relatively fast economic growth. It has a population of about 25 million and the middle class is also rising rapidly. The government has introduced reforms in the legislation to promote a favourable business environment in the country to attract foreign investment into the country. The school curriculum in the Cameroon has had ICT since 2009.

There is a massive increase in mobile phones access in the country. The need for mobile internet, therefore, continues to grow at a very fast rate. This is an excellent investment opportunity for mobile operators.

3. South Sudan for Information & Communications Technology Investment

South Sudan is a new African country that only became independent in 2011. The country is therefore in the process of building its economy though it started on the wrong footing of power struggle and civil war. The country has made some progress in opening the market to foreign investors through the government’s efforts to encourage foreign direct investment. The Ministry of Telecommunications and Postal Services oversees and promotes the growth of the ICT sector in the country.

The ICT sector has been identified as one of the key areas for the economic growth. There is, therefore, remarkable activities in the industry specifically on the expansion of broadband connectivity as well as mobile services. South Sudan is among the least developed countries in the world as far as ICT is concerned. The sector has the real potential of profitable investment opportunities. However, this only depends on the agreement between President Salva Kiir and Riek Machar to bring peace in the country.

The mobile access in the country is among the lowest in Africa, but the future is bright. The mobile access is expected to rise in some years to come. The internet and broadband market is virtually untapped. This means that sophisticated infrastructure solutions are in dire need to be able to reach the wider population.

4. Djibouti for Information & Communications Technology Investment

Djibouti is a country with a population of just 850,000 people. The country has a stable political system. Despite the small population, the country has had a steady increase in opportunities in the ICT sector. The increase in consumption and the demand for international bandwidth connectivity is the reason behind this increase in investment opportunities.

The department set to oversee development in the ICT sector is the Ministry of Communication and Culture. The country has laws that encourage foreign investment. For instance, there is no screening of foreign investment or any discriminatory treatment.

5. Liberia for Information & Communications Technology Investment

In the recent past, Liberia has experienced challenges of Ebola outbreak, but with the help of the international community, the government has successfully fought the disease.

The ICT sector in the country offers investment opportunities with the real potential of success. The mobile penetration in the country has had a significant increase in the past, and it is set to experience more expansion. It is projected to reach 92% by 2018.

The country has already a comprehensive ICT policy in place that is aimed at promoting the growth of the ICT sector in the country. For instance, the policy provides for waiver of customs duties on imported equipment related to ICT.

6. Burundi for Information & Communications Technology Investment

The government of Burundi has come up with plans to encourage growth in the country’s ICT sector. The analogue to digital migration has opened many investment opportunities in the ICT and broadcasting market. The other projects carried out by the government, through the Ministry of Telecommunications, ICT and Parliament Relations, include Bujumbura broadband network project and the fiber-optic cable project.

The mobile phone access in the country has also experienced significant growth in the past few years. The sector offers many investment opportunities of which some such as high-speed internet market have not been fully exploited.

7. Gabon for Information & Communications Technology Investment

Gabon is an upper middle-income and oil-rich country situated on the Gulf of Guinea. The country has a population of about 1.7, and it enjoys political stability.

In 2014, the country launched its 3G and 4G mobile data coverage. This move has increased the number of internet users in the country. The government has shown a genuine commitment to transform the country into a digital economy. The development of digital infrastructure is a priority in Gabon, and that is why the National Agency for Digital Infrastructure and Frequencies was established in 2011. The competition in the ICT sector in the country is relatively fair.

Have you been looking to invest in a country that has a real potential in ICT? Africa is among the regions that have many untapped ICT opportunities. The above seven countries have excellent ICT opportunities that you can invest in.

Many opportunities are yet to be utilised as compared to other larger economies such as South Africa and Nigeria. The governments of these countries have taken significant measures to open the market for international investors with the aim of encouraging foreign direct investment. ICT sector is one of the key areas for economic development. As such, these governments have put in place policies that attract investment into this sector. These countries offer tax incentives to foreign investors in this area in addition to many more other attractions.

Just like in many other countries in this world, there are notable challenges that have hampered foreign direct investment inflows into these countries. The good thing is that the countries are doing a remarkable job to rectify everything. Looking at the history of each country, the improvements are just incredible. They indicate that the governments are dedicated to making the investment environment better in addition to making the countries more competitive. The investment opportunities available guarantee you good returns on investment if you are keen. Good luck as you choose to invest in the African country of your choice!