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Expect New Digital Biz Sprouting Across Africa in 2014

Expect New Digital Biz Sprouting Across Africa in 2014

Africa’s strong growth in mobile data, smartphones and communications infrastructure will accelerate local digital media business production in 2014, according to a technology forecast in BusinessDayLive.

But although they recognize these emerging trends, Africa’s governments may not have the capacity to develop and effectively manage mobile apps internally, according to a report released this month by research group International Data Corporation (IDC).

The number of mobile connections in South Africa, Kenya and Nigeria is expected to grow 28.2 percent in 2014 to reach 55.8-million, IDC reports.

Smartphone spending in sub-Saharan Africa is expected to increase by 5.9 percent in 2014 while feature phones will decrease by 10.9 percent.

International bandwidth will be available to more Africans with eight sub-Saharan countries already offering high-speed wireless network (called long-term evolution (LTE) services) and five others exploring it.

“These factors are driving the content creation,” IDC said. “New business models based on digital media provision (are) sprouting across Africa.”

IDC expects to see more businesses focusing on video streaming, significantly boosting the digital media industry in Africa. It also expects telecom operators to feature significantly in the content-creation drive on the continent.

Telkom is in discussions with local and international content aggregators in a bid to provide the platform to carry such content.

Vodacom is also reportedly in discussions with Naspers to provide its pay-TV content to its mobile customers.

MTN has partnered with True African in Uganda and MultiChoice in Nigeria to enhance its content offerings and IDC expects more such partnerships in 2014, boosting the digital media industry in Africa, according to the BusinessDayLive report.

IDC also predicts 2014 will see a significant increase in local creation of mobile and Internet-based apps. Apps have been one of the drivers for smartphone and mobile data use, according to the report.

Mobile apps will play an increasingly important role as an alternative service delivery channel for citizens and visitors, IDC said.

But although they recognize these emerging trends, governments may simply not have the capacity to develop and effectively manage mobile apps internally, the IDC report said.

To enable the development of apps and digital media, private companies and Africa’s governments are expected to accelerate infrastructure development. But first there must be better collaboration between private and public sectors, more demand for access and a more competition, IDC said.

IDC also predicts that the focus on development of sustainable ICT will shift into high gear in 2014 and will see governments re-examine or initiate policies regarding ICT development to drive economic growth.

In South Africa for example, the government is gearing up to ensure that every citizen has broadband by 2020.

“Africa seeks relevant technology that brings direct answers to African social, economic and commercial issues,” said IDC Director Mark Walker.

Solving problems using innovative approaches and leapfrogging technologies and business models will be key themes in 2014, Walker said.