5 trends that could shape the African tech market in 2022
2021 showed huge potential for the African tech market with the rise of new tech unicorns in finance and the rising number of tech startups and innovations. This year there are high expectations for the African tech industry.
These are trends you should look out for in 2022:
1. Adoption of the 5th generation mobile network (5G)
Many believe that 5G is one of the fastest, low latency networks on earth. The network provides adjusted connectivity to concrete needs such as remote work.
A recent report by the Global Mobile Suppliers Association (GSA) stated that 18 countries in Africa have begun testing and deploying 5G.
For instance, Kenya’s leading mobile operator Safaricom has begun rolling out 5G in Nairobi, Kisumu, Kisii, and Kakamega. Moreover, the operator sets to expand to 150 sites across nine towns over the next few weeks.
2. Distributed Infrastructure
Distributed infrastructure brings together edge and cloud computing technologies to empower companies to boost their speed and agility, reduce cost and improve their cybersecurity.
According to Statista, Africa's revenue in the last two years has shown a continuous growth from $27.97 billion in 2020 to $33.32 billion in 2021, and this year it is expected to rise to $38 billion.
The tremendous growth has encouraged various investment opportunities.
Regardless of the skepticism from various governments in the region Africa is considered one of the fastest-growing markets for Peer-to-Peer (P2P) cryptocurrency adoption.
The Global Crypto Adoption Index
For decades, African nations have struggled with issues related to infrastructure and development, which made financial services less accessible.
Cryptocurrency will give a majority of the African population, mostly youth aged between 18 and 25, opportunities to secure their financial future.
5. Maturity of IT regulatory frameworks
The rapid growth of internet users has encouraged many African countries to implement data protection laws and establish data protection authorities.
Currently, 20 countries in Africa have enacted comprehensive personal data protection and legislation, namely Western Sahara, Tunisia, Morocco, Mali, Senegal, Ghana, Burkina Faso, Côte d'Ivoire, Benin, Gabon, Nigeria, Angola, Rwanda, Kenya, South Africa, Lesotho, Madagascar, Mauritius, Seychelles, and Comoros.
The passing of such laws is vital to instil confidence and trust amongst African citizens to use locally sourced information technology resources.
Regardless of the challenges, many African states are on the right path to becoming one of the top players in the tech industry.
Scaling up the manufacturing of electronics would make Africa's tech market successful.