IFS CEO sees growth opportunities for tech in Africa

In a time when innovation is crucial for driving growth in Africa, the technology landscape plays a vital role in shaping the continent's future. Darren Roos, the Global CEO at IFS, shared insights on the opportunities that exist for technology companies in Africa during a recent interview with CNBC Africa. Roos highlighted the significant growth potential in the South African and African markets, despite the challenges the region faces. According to IDC, the South African market is projected to reach $26 billion in 2020 with a growth rate of 2.5%, indicating stiff competition among vendors in the market. Similarly, IT spend in Africa is expected to grow by 3.6% in 2021, remaining under 5% through 2024. However, the enterprise software space shows a promising double-digit growth ranging from 16 to 18% from 2021 onwards, driven by increased connectivity and cloud adoption in the region. Roos emphasized the untapped potential of Africa's young and talented population, underscoring the importance of investments in talent development by both the public and private sectors. He highlighted IFS' initiative in Dipslet, one of South Africa's poorest areas, aimed at engaging youth in technology from a young age to foster their interest and future prospects in the field. Roos also discussed the impact of technology companies on economic growth, particularly in South Africa, amidst the challenging economic conditions exacerbated by COVID-19. He noted the role of cloud technologies in enabling companies to compete globally by providing access to advanced capabilities that were previously out of reach due to capital constraints. Roos commended efforts by global tech giants like Microsoft, Amazon, and Facebook in investing in skills development and infrastructure across Africa, signaling the continent's growing importance in the global tech landscape. Despite the talent shortage in the enterprise software space, Roos believes that Africa presents a significant market opportunity that cannot be ignored by businesses of any size. He stressed the need for collaboration between tech companies and the local talent pool to leverage the improving infrastructure and drive innovation in the region. Roos expressed optimism about the doors opened by African governments to facilitate business growth and emphasized the vast potential for technology companies to thrive in Africa's evolving tech ecosystem. As the continent continues to embrace digital transformation and connectivity, the tech sector is poised to play a key role in driving economic development and fostering innovation across industries.