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Cloud is not a country

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Medium and large businesses across South Africa, Kenya and Nigeria experience very different usage, benefits and intentions with cloud computing, according to new research by World Wide Worx and F5 Networks.

Cloud computing has taken off dramatically across Africa’s major markets, but its benefits are experienced very differently in each region – as are its budget allocations.

These were some of the key findings of Cloud Africa 2018, a research project conducted by World Wide Worx for global networking application company F5 Networks, across Kenya, Nigeria and South Africa earlier this year. Decision-makers at 300 medium and large organisations were interviewed about cloud computing usage, benefits and intentions.

“It is no longer about whether to use the cloud, but what benefits are being gained from the cloud,” says Matthew Barker, F5 Networks’ divisional sales manager for Sub-Saharan Africa. “These depend heavily on the dynamics of each market, so we were not surprised to see that businesses in each country emphasised different benefits.”

“Over the five years since World Wide Worx conducted equivalent research, use of the cloud among medium and large organisations has more than doubled, from less than 50% using it in 2013 to pervasive use in 2018”, says World Wide Worx managing director, Arthur Goldstuck.

Respondents in Nigeria and Kenya named business efficiency and scalability by far the most important benefit of cloud computing, with 80% and 75%, respectively, selecting it as an advantage, compared to 61% of South African respondents.

For South Africans, time-to-market or speed of deployment came in as the most prominent benefit, as cited by 68% of respondents. In contrast, only 48% of companies in Kenya and 28% in Nigeria named this as a key benefit.

Barker believes this is a result of the infrastructure challenges in developing information technology markets like Nigeria and Kenya, where the cloud is used to overcome the obstacles that get in the way of efficiency.

“In South Africa, with a more mature IT landscape, the focus is on the competition rather than the business itself,” he says.

This is borne out by the fact that almost a quarter (23%) of South African respondents see the cloud as a platform for international expansion, whereas this figure drops below one in five in Kenya (17%) and below one in ten in Nigeria (6%). The one area where all three countries are level – using the cloud as a platform for service innovation – is ranked exceptionally low, at around 15% across these markets.

“Internationally, it is taken for granted that the cloud is an ideal platform for both innovation and for establishing a global footprint,” says Goldstuck. “In these three markets, these are benefits that are only now beginning to be recognised, but are still a long way from being a priority. The cloud is here but its full benefits have not yet arrived.”

Key findings

Business impact:

·       82% of respondents in Nigeria have seen an impact from cloud computing on market share, with 48% seeing a high or very high impact.

·       In Kenya, 69% have seen an overall positive impact, while 48% had seen a high or very high impact on market share.

·       In South Africa, 66% had seen a positive impact but only 33% had seen a high or very high impact.

·       Innovation within the organisation saw an equally high impact in all markets, with 100% positive impact in Nigeria, 98% in Kenya and 88% in South Africa.

·       The cloud has had a similar impact on brand perception, at 100% in Nigeria, 98% in Kenya and 85% in South Africa.

·       The cloud has also had a high impact on customer experience, at 96% in Nigeria, 85% in Kenya and 81% in South Africa.

Cloud budgets:

Nine out of ten (90%) companies in South Africa said they had increased spending on cloud computing last year, and 83% said they would increase these budgets in 2018. In Nigeria, 78% said they had increased budgets last year, and 94% said they would increase their spending this year. The biggest increase comes from Kenya, however, with 74% of companies having increased cloud budgets in 2017, rising to a massive 98% in 2018.

A minimal proportion of respondents – not more than 2% in any of the countries surveyed – said they had decreased cloud spending last year. For 2018, no companies in Kenya or Nigeria said they would decrease spending, although 5% of South African respondents said they would.

Broken down by industry in South Africa, the highest proportion of increased budgeting for 2018 was reported by IT software and services companies, at 92%, followed by Mining at 85% and Retail trade at 83%. The biggest drop in cloud budgeting was expected by the Engineering sector, with 13% declining in planned spending.

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Apps:

When asked which apps were critical to organisations, 68% of Nigerian and 67% of Kenyan companies said Service apps were critical, while only 40% of South African respondents named these as key.

On the other hand, South African companies were far more likely than those in the other countries to regard human resources apps as important: 43% of South African respondents named HR apps as critical to business, compared to 19% in Kenya and 10% in Nigeria.

“It is clear that more attention is paid to internally-focused apps in South Africa than in the other markets,” says Barker. “In Nigeria and Kenya, on the other hand, customer-facing apps get the closest attention.”

A further indication of the low emphasis on internal apps is the rating of operational apps, which are seen as critical by only 15% of respondents in Kenya and 10% in Nigeria. While still low in South Africa, at 30%, it was more than double the proportion of the other two countries combined.

One area where all markets are equal, however, is in business apps, with only small variations between the three countries measured. Nigerian respondents took them slightly more seriously than the rest, with 76% seeing them as critical, while 72% of South African companies and 67% of those in Kenya agreed.

“Ultimately, the cloud is about better ways of doing business,” says Goldstuck. “That is reflected in cloud priorities and budgets across Africa.”

 

Africa News

Mastercard names 9 Africa projects for $9-million fund

The Mastercard Foundation Fund for Rural Prosperity (FRP) has announced that nine companies from seven countries will receive more than US$9 million to support projects that expand financial inclusion in rural Africa.

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The nine companies were selected from more than 300 firms competing in the first two phases of the Fund’s 2017/2018 rolling competition, which launched in June 2017 and closed in January 2018.

The 2017/2018 rolling competition was one of the Fund’s largest in its efforts to find and support providers of innovative and scalable financial products and services that improve the lives of poor people living in rural areas of Africa. Financing for another group of companies, assessed as part of the third and fourth phases of the competition, will be announced in 2019.

The latest round of financial support will extend innovative transactions, green energy, asset finance, mobile banking, agency banking, and distribution/logistics solutions to excluded rural populations in the seven countries.

Phase #1 selected companies are:

  • Equity Bank Congo SA
  • FutureLink Technologies Limited
  • Apollo Agriculture Limited
  • SolarNow Services Limited
  • Easy Solar Limited
  • Dodore Kenya Limited

Phase #2 selected companies are:

  • Farmerline Limited
  • Stewards Globe Limited
  • Microcred Limited

The nature and geographical diversity of the new projects saw the Fund expand its presence to four additional Sub-Saharan countries: Democratic Republic of Congo, Mali, Sierra Leone, and Zambia. The Mastercard Foundation Fund for Rural Prosperity portfolio now includes 30 projects in 11 countries in Africa (Côte d’Ivoire, Democratic Republic of Congo, Ethiopia, Ghana, Kenya, Mali, Mozambique, Sierra Leone, Tanzania, Uganda, and Zambia). The projects comprise a range of businesses from traditional banks and solar-energy leasing companies to agricultural off-taker firms.

“We are excited to add nine more companies to our growing portfolio that is having a positive impact on the lives of millions of people across Sub-Saharan Africa,” said Wambui Chege, Team Leader of the Fund for Rural Prosperity. “Today’s announcement reinforces our belief that there is a wide range of innovative, Africa-led projects that, with a little support, can drive financial inclusion across the continent.”

Lindsay Wallace, Director of Strategy and Learning at the Mastercard Foundation, said: “The aim of the FRP has always been to enable smallholder farmers and poor people living in rural Africa to reach their full potential by supporting new private sector initiatives that provide access to financial services. We’re very happy to see this latest round of selected firms, demonstrating the depth and breadth of ideas and action plans that will do just that.”

Continue reading about the companies on the next page.

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Africa News

IoT’s answer for Africa

IoT and digitization enables us to efficiently, proactively and predictively address the sustainability challenges that are faced globally and on the African continent, RESHAAD SHA, CEO of Liquid Telecom.

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With Africa’s population set to increase from around 1.3-billion in 2018 to 1.7-billion in 2030, both challenges and opportunities are presented with regards managing issues including food production and security pose  as well the utilization of limited natural resources in a sustainable manner.

Water scarcity and quality for example are realities that negatively impact health, food production and security. Population growth rates and climatic changes place an exponential demand on this scarce and dwindling resource. These are just some of the sustainability challenges facing not just the African continent, but other developing nations and the world as a whole. In addition to this, the demand for the delivery of basic services as healthcare and sanitation also increases.

Against this background of African population growth lies the grim projection that Africa will account for more than 50% of child deaths (under 5) by 2030, while each day, nearly 1000 children die owing to preventable water and sanitation-related diarrheal diseases according to the UNICEF 2017 trends in child mortality report. It’s an alarming fact, given that while some 2.6-billion people have gained access to improved drinking water sources since 1990, 663-million people still do not have access.

The department of Water Affairs and Forestry estimate that the agricultural sector accounts for more than 50% of water use in South Africa and experience water losses of between 30 and 40 per cent. Further, the department states that around 35% of irrigation system losses, often nutrient enriched and containing herbicides, pesticides, and other pollutants, return to rivers. These are just some of the ways in which reactive, inefficient, and manually driven processes have limited us in responding in an impactful manner and timeously mitigating these risks

It is for these reasons and other socio economic and environmental concerns that the United Nations has established its Sustainable Development Goals strategy, addressing the global challenges we face, including those related to poverty, inequality, climate, and environmental degradation.

We need to look at smarter ways that leverage technology in order to addressing these challenges. The situation requires a radical response that delivers a proactive, predictive and data driven approach to addressing these issues with exponentially growing levels of speed and impact.

The IoT ecosystem, comprising of sensors, connectivity, data analytics and workflow automation platforms, and applications are at the core of acquiring, analyzing and harnessing the insights that can be integrated into agriculture, service delivery, health and resource management processer – IoT is at the core of a digitization

One such sector which has benefited immensely from technology is in agriculture pest control, with the implementation of AI and IoT by Spanish startup AgroPestAlert. The innovation makes use of “smart” traps that capture insects and analyse their wing beats to identify their species and even their sex. Placed throughout the fields, the traps communicate with the system to predict an imminent invasion. The system will send alerts to phones, tablets and computers and use an easy-to-understand visual tool to cue farmers instantly.

Around 200-million Africans use approximately 1-million manual pumps across the continent to manually access clean drinking water.  IoT applications have been utilised in assuring the delivery of water through manual these pumps, According to estimates, at least one-third of those pumps will break down at least once in its lifecycle, and up to 70% will break in the second year of operation. The impact of not having access to clean drinking water is dehydration or water borne pandemics.

In the Kenyan Region of Kyusoa, Oxford University began a proof of concept project in 2013, which made use of motion sensors) to capture the movements of the pumps’ handle which was transmitted and analysed in real time. A decision support system based on real data was  used to predict pump malfunctions, allowing for a better planning and shortening the time needed to repair broken pumps, or avoiding malfunctions altogether, directly improving the access to clean drinking water for the rural population.

Liquid Telecom realise that the future of sustainability lies in technology and innovations such as IoT. We provide high speed fiber connectivity to interconnect as well as access platforms to build IoT solutions, in addition to access to Microsoft Azure suite of platforms for analytics and algorithm driven based processing and execution. Our Pan African network enables collaboration and cross border innovation and learning, fast well as the capability to efficiently scale out these solutions on Africa’s Liquid Cloud.

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