5 Powerful 5-Year Predictions for the African Tech Industry

 

There’s absolutely no denying that the African technology sector is one of the fastest-growing tech sectors in the entire world, and it shows no signs of slowing down any time soon. That being said, whether you’re a business in Africa, looking to invest or expand into the country, or you’re just interested in the tech scene, you’re probably as to what is going to happen over the next coming years?

Where is the African tech sector heading?

Today, I’m going to aim to answer this question by diving deep into what’s happening now and sourcing the best predictions as to what the world can expect from this growing industry. Let’s jump right into it.

1. Fintech is Coming into Play

Fintech has been around for several years now and has played a big part in the world’s economy, Africa included. However, digital banks are now merging with fintech companies to create powerful products that can do more than ever before.

This means traditional banks are falling by the wayside in Western countries and will continue to do so in Africa. Since partnerships are growing among digital banks, fintech companies, and providers like Visa and Mastercard, you can bet these consolidations and integrations are going to continue.

2. AI Will Continue to Grow

Back in 2017, the AI market and industry in Africa began to really take off. While only worth $66 million back then, this number has grown exponentially, especially since companies like Google are opening AI labs throughout the country, such as the one already in operate in Ghana.

In line with the times, it seems as though there’s no reason why this trend won’t continue upwards over the coming years, especially since there are plenty of new and creative start-ups who will be using AI technology in their own products and services. Due to the creativity and innovative nature of the African tech scene, we’re excited to see how this modern technology will be used moving forward.

3. Government Attitudes Will Change (Hopefully)

When looking at the tech and government sectors of Africa, the two don’t exactly see eye to eye. There are, in fact, plenty of examples where the government has chosen to tax access to the internet, stopping people from being able to get online easily, and actually making the service harder to grow.

Of course, this may continue over the coming years, but many institutions are hopeful that the government will open their eyes and realize that making these services available as affordably and as easily as possible will open the floodgates for more businesses and creative people to bring more money into Africa which can then provide even more of an economic boost.

4. The Mobile Industry is Burning

Reading this header, you may come up with your own opinions, but there’s no denying that the heat is on for the African mobile industry, and there are going to be some big changes in this sector over the coming years. In particular, I’m talking about mobile phone and service providers.

For example, network provider MTN is stuck in a fiesta with the government, Alliance for Affordable Internet has prices too high for most people to afford, and Millicom is basically moving out and reducing African units.

This means that other business that uses such mobile services will also be affected, as will the average users, so either new companies and providers will come in to take their place, or existing providers will need to be proactive in sorting out their problems.

5. Investors are Spreading Like Wildfire

Since 2018’s record-breaking year in terms of tech investors coming to Africa and pouring money into businesses and start-ups, every year has continued to be record-breaking, and since the tech sector is still a snowballing industry in this part of the world, it seems very likely that this is going to continue.

This is happening across all tech industries and sectors, including logistics, fintech, energy, the healthcare sector, and many more, and investors are internal to the country and coming in from international locations.

Angela Douglas is a young entrepreneur from Florida who has founded two online businesses and a blog at the age of 31. Currently, she practices business coaching at Coursework writing service and Gum essays and gives consultations to beginning startupers. Angela enjoys reading, traveling, and writing. You can find more of her activity at Research papers UK.