As the year slowly comes to an end, we can look back and agree on one positive thing that has been on the rise, that has been on the rise, that is e-commerce. Add that to the fact that Internet penetration across Africa is on the increase and judging from our Submit Your Company form, we can say that e-commerce is the new witch money.
Africa is a burgeoning and largely unexplored consumer market. According to McKinsey and Co. Consumer facing industries in Africa are predicted to increase by over $400 million in 2020. This includes the aforementioned e-e-commerce among other sectors.
This has led the Africa Internet Group to access and rank the top 7 countries for technology and e-commerce increase in the region, with the help of independent studies, field surveys and research.
Below is a list of the top seven countries in Africa where iGDP is important and why it is in the spotlight for AIG's ventures, investors and venture capitalists.
1. SENEGAL
This country leads the pack in Africa with an iGDP of 3.3%. Initiative like the Jjiguene Tech Hub, Jjiguene means 'woman' in wolof are made by women for women in Senegal, it goal to help women enter the world of IT driven businesses. The potential for this initiative has been recognized by a number of investors including IT giant Microsoft.
2. KENYA
Close on the heels of Senegal is Kenya, with an iGDP of 2.9%. The previous president of Kenya started $14.5bn project earlier this year to create city to shape African tech businesses something similar to the Silicon Valley; called the African Silicon Savannah. This city is designed to become a hub for outsourcing of BPO operations and general IT support, as well as helping to foster growing businesses. Kenya is also the birthplace of the BRCK.
3. MOROCCO
This North African country is developing fast and is well positioned to become Africa's financial center. With projects like Casablanca Finance City and Casablanca Technopark, it isn't surprising that their iGDP is 2.3%. King Mohammed VI of Morocco is on his way to achieving his dream of making Casablanca the financial hub of Africa and attracting investment to help companies tap into the huge Franco-African market. There are over 100 companies in the Technopark already.
4. MOZAMBIQUE
On the international radar as one of the top three African countries with rapid development. Recent collaborations with China have further improved their agricultural industry and in addition to this, real estate and hospitality opportunities are bountiful. It is among the top five economies in Africa which have made significant progress in the IT sector. Mozambique now has an iGDP of 1.6% and this looks set to increase as IT underpins many other areas of development in the country.
5. NIGERIA
The pride of Africa, being its largest economy. It has an iGDP of 1.5% and is also the e-commerce hub of Africa with businesses like Jumia, Kaymu, Konga and many others. IT is successful in Nigeria and apart from multiple technology hubs, there are several accelerators in Nigeria to help start ups and to promote IT based businesses. I really would like to know how the iGDP was calculated and how we are 5th. but maybe I'm being biased.
6. SOUTH AFRICA
Follows Nigeria closely with an iGDP of 1.4%. It is among the most economically grown nations in Africa and it is one of the most receptive. South Africa has IT hubs all along the Western Cape province among which is the city of Stellenbosch is known as the Silicon Valley of South Africa but development needs to be accelerated as other African countries are steaming ahead with investment into the IT sector.
7. GHANA
Though last on the list here, with an iGDP of 1.1%, it is definitely not the least. Only recently, the president of Ghana agreed to build an IT city near Accra the capital with a total investment of about $5,2bn. Plans involve building a tower which aims to be the tallest in Africa.
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