DG of NITDA, Dr Isa Ali Ibrahim Pantami and startups from Jos at WACC 2016
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  • More than half of African business leaders expect tech funding surge as foreign investment and internet connectivity expands
  • Nearly half expect Africa to be a tech superpower within 10 years

African business leaders are forecasting a surge in spending on tech start-ups as foreign direct investment and improved internet connectivity helps establish the continent as a tech superpower,  new research for blockchain-based mobile network operator World Mobile shows (please see the attached press release).

RELATED: VC funding for African blockchain startups rises by 1,668%, outpacing all other startups by 11 times

More than half (54%) of African senior executives expect spending on tech start-ups on the continent will more than double by 2025 to $10 billion or over compared with the $4.9 billion raised last year. Around one in six (16%) believe more than $15 billion will be raised.

The study with African business leaders from companies with total annual revenues of more than $6.75 billion identified foreign direct investment and improving internet connectivity as the key drivers for the expansion.

Around three-quarters (75%) believe the investment will come from Western countries while 66% believe China will be a major source of investment. Nearly six out of 10 (57%) believe dramatic improvements in internet connectivity will be the main support for expansion as it drives education, healthcare, and business.

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The research among senior executives at companies with average annual revenues of $70 million based in Tanzania, Angola, Botswana, Cameroon, Ethiopia, Ghana, Nigeria, and South Africa found nearly half (45%) believe Africa will be a tech superpower within 10 years.

They point to the development of Africa’s tech ecosystem – nearly 90% of those interviewed expect it to grow by at least half its current size in the  next three years with 15% expecting it to double in size during that period.

That in turn will expand Africa’s role in supplying technology to the rest of the world – around 60% of executives expect that to grow in the next five years with one in 10 predicting dramatic expansion.

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COVER IMAGE: COVER IMAGE: Prof Isa Ali Ibrahim Pantami, then DG of NITDA, of NITDA, and startups from Jos at WACC 2016

 

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