Close Menu
  • Homepage
  • News
  • Cloud & AI
  • ECommerce
  • Entertainment
  • Finance
  • Opinion
  • Podcast
  • Contact

Subscribe to Updates

Get the latest technology news from TechFinancials News about FinTech, Tech, Business, Telecoms and Connected Life.

What's Hot

Ethereum Traders Increase Leverage On-Chain As HFDX Liquidity Hits New Highs

2026-01-31

New To On-Chain Perps? HFDX Is Rapidly Emerging As The Beginner-Friendly Option

2026-01-31

Standard Chartered GBA Business Confidence Indices reveal steady business sentiment

2026-01-31
Facebook X (Twitter) Instagram
Trending
  • Ethereum Traders Increase Leverage On-Chain As HFDX Liquidity Hits New Highs
Facebook X (Twitter) Instagram YouTube LinkedIn WhatsApp RSS
TechFinancials
  • Homepage
  • News
  • Cloud & AI
  • ECommerce
  • Entertainment
  • Finance
  • Opinion
  • Podcast
  • Contact
TechFinancials
Home»News»How Africa can develop a home-grown tech sector
News

How Africa can develop a home-grown tech sector

Gugu LourieBy Gugu Lourie2016-07-20No Comments5 Mins Read
Share Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email Copy Link

Africa is coming online rapidly. Internet penetration in the continent is growing faster than in any other region in the world, giving millions more people access to better communication, information and business opportunities. Although only around 20% of people in Africa have internet access (compared to a global average of 40%), this has increased from less than 5% ten years ago. By Gareth Tyson

What’s missing, however, is a significant amount of locally created, owned and hosted online services. For example, there are just 12 secure web servers for every million people in Africa, compared to 1,171 in North America. Instead of using home-grown services, many countries favour globally popular brands based in other parts of the world, such as Google and Facebook. This lack of local African online presence is putting the continent at a serious disadvantage, denying people the chance to take full advantage of the net’s potential. The difficult question is what to do about it.

You could argue that Africa’s appetite for international online brands is a good thing as it shows how the internet is seamlessly connecting emerging regions to the global market. But it comes at a cost. Flooding emerging regions with highly developed competition runs the risk of stifling new local alternatives, a problem that economists and politicians have worried about for hundreds of years.

How, for example, can a fledgling, locally created, online service compete against the likes of Google? It’s possible this obstacle could limit the economic benefits for African countries and prevents them from helping to further enrich and diversify the web away from a few big players.

In my own recent research, I found that Africa’s internet problems are not only to do with creation and ownership of websites. Even services that are locally designed in Africa (such as news websites) are often hosted and operated outside of the continent, often in the US and Europe. The main reason for this is the cheaper and more reliable hosting services available abroad. A recent report from the Internet Society found that Rwandan content providers could save $111 per year by hosting their content overseas.

Slower, more expensive

But this is a double-edged sword. It might be cheaper for the websites, but it’s much more expensive for the local internet service providers or ISPs (the companies that connect users to the internet), who have to fetch the data from across the world. In the example of Rwanda, local ISPs who deliver the content to internet users had to pay $13,500 a year more than if they had been able to connect to Africa-based servers, pushing up the costs for everybody.

The problems don’t stop there. Having to connect to foreign-based websites also produces far slower download times. This can be mind-numbingly frustrating for users, which then discourages them from using the sites that perform poorly.

African developers tackling African issues.
Erik Hershman/flickr, CC BY

However, the example of China shows that it doesn’t have to be this way. The country’s strict censorship regime has limited the import of foreign websites. This has actually helped produce a number of alternative, locally created and hosted websites. In turn, this has helped the country develop a rapidly growing web-tech industry with giants such as search engine Baidu, online shopping site Taobao, and video site Youku creating a huge capacity for innovation, as well as the related economic benefits.

On moral grounds it is hard to justify encouraging such censorship in Africa. Denying people access to videos on YouTube or the global reach of Facebook seems fundamentally wrong. It would also undermine the idea of net neutrality – that ISPs should provide access to all internet content equally – which many see as a core principle of the internet.

And while many countries throughout history have used trade protectionism to protect their so-called infant industries, the internet is a different beast. Its global nature and the way it can underpin other industries means that limiting foreign websites, even for a few years, may have too many negative effects. Imagine an online business suddenly losing access to eBay.

Positive solutions

Instead of banning foreign sites, we should look for more positive solutions. Proper regulation, infrastructural investment and, most importantly, training are key ways to encourage local innovation. A good starting point would be to look for the types of services that desperately need the local touch. Many of the needs of African users mirror those of other global users. So devising a unique selling point that can break through the competition of the big international players is tricky. Taking the local approach and focusing on the types of services that are not met by the global elite would be an effective way to sidestep this issue.

Luckily, countless examples have begun to emerge, such as Ushahidi, which was designed to map reports of violence in Kenya after the 2008 elections. Services in other emerging economies can also provide inspiration, such as the Indian rickshaw-booking service Autowale. These fantastic examples show innovation at its best: finding solutions to real problems on the doorstep. And from the small seeds of a local start-up, maybe the next global tech giant will grow. By expanding this local expertise and capacity, a foundation is being built for the future. It is only a matter of time before we see an African website among the bookmarks of internet users all over the world.

The Conversation

  • Gareth Tyson, Lecturer in Computer science, Queen Mary University of London
  • This article was originally published on The Conversation. Read the original article.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Gugu Lourie
Gugu Lourie

Related Posts

Volvo ES90 South Africa Launch: Pricing, Specs & Core, Plus, Ultra Trims

2026-01-29

Ramaphosa Orders Special Police Unit To Probe Madlanga Commission Allegations

2026-01-29

Eskom and the Netherlands launch Grootvlei Climate Smart Horticulture Centre in Mpumalanga

2026-01-26

The EX60 Cross Country: Built For The “Go Anywhere” Attitude

2026-01-23

Cartesian Capital Expands Investor Toolkits With JSE Listings

2026-01-20

Kili Technologies: Unlocking Africa’s Clean Energy Potential With Trusted Data

2026-01-19

Luminance Expands In Africa Amid Demand Surge

2026-01-15

Mpumalanga’s Top Matric Achiever Luyanda Ndlozi Rewarded With Brand New Car

2026-01-14

Say Hello To Haier: Intelligent Appliances Designed For SA’s Future

2026-01-14
Leave A Reply Cancel Reply

DON'T MISS
Breaking News

Meet The €2.95M Capricorn 01 Zagato Hypercar Rebel

capricorn GROUP (capricorn), the German-based industry leader in automotive and motorsport lightweight technology, presented two…

SARB Holds Repo Rate Steady in Cautious Monetary Policy Decision

2026-01-29

Huawei Says The Next Wave Of Infrastructure Investment Must Include People, Not Only Platforms

2026-01-21

South Africa: Best Starting Point In Years, With 3 Clear Priorities Ahead

2026-01-12
Stay In Touch
  • Facebook
  • Twitter
  • YouTube
  • LinkedIn
OUR PICKS

How a Major Hotel Group Is Electrifying South Africa’s Travel

2026-01-29

Volvo C70: 30 Years Of The Car That Changed The Way Volvo Looked

2026-01-29

The EX60 Cross Country: Built For The “Go Anywhere” Attitude

2026-01-23

Mettus Launches Splendi App To Help Young South Africans Manage Their Credit Health

2026-01-22

Subscribe to Updates

Get the latest tech news from TechFinancials about telecoms, fintech and connected life.

About Us

TechFinancials delivers in-depth analysis of tech, digital revolution, fintech, e-commerce, digital banking and breaking tech news.

Facebook X (Twitter) Instagram YouTube LinkedIn WhatsApp Reddit RSS
Our Picks

Ethereum Traders Increase Leverage On-Chain As HFDX Liquidity Hits New Highs

2026-01-31

New To On-Chain Perps? HFDX Is Rapidly Emerging As The Beginner-Friendly Option

2026-01-31

Standard Chartered GBA Business Confidence Indices reveal steady business sentiment

2026-01-31
Recent Posts
  • Ethereum Traders Increase Leverage On-Chain As HFDX Liquidity Hits New Highs
  • New To On-Chain Perps? HFDX Is Rapidly Emerging As The Beginner-Friendly Option
  • Standard Chartered GBA Business Confidence Indices reveal steady business sentiment
  • AFF draws 4,000+ global political and business leaders, inaugural Global Business Summit
  • NSFW AI Chat with Advanced Memory Systems for Contextual Interaction Launches on Dream Companion
TechFinancials
RSS Facebook X (Twitter) LinkedIn YouTube WhatsApp
  • Homepage
  • Newsletter
  • Contact
  • Advertise
  • Privacy Policy
  • About
© 2026 TechFinancials. Designed by TFS Media. TechFinancials brings you trusted, around-the-clock news on African tech, crypto, and finance. Our goal is to keep you informed in this fast-moving digital world. Now, the serious part (please read this): Trading is Risky: Buying and selling things like cryptocurrencies and CFDs is very risky. Because of leverage, you can lose your money much faster than you might expect. We Are Not Advisors: We are a news website. We do not provide investment, legal, or financial advice. Our content is for information and education only. Do Your Own Research: Never rely on a single source. Always conduct your own research before making any financial decision. A link to another company is not our stamp of approval. You Are Responsible: Your investments are your own. You could lose some or all of your money. Past performance does not predict future results. In short: We report the news. You make the decisions, and you take the risks. Please be careful.

Type above and press Enter to search. Press Esc to cancel.

Ad Blocker Enabled!
Ad Blocker Enabled!
Our website is made possible by displaying online advertisements to our visitors. Please support us by disabling your Ad Blocker.