FDI inflows into Africa fuel expansion of ICT sector: experts

Growing Foreign Direct Investment (FDI) inflows into Africa are fueling the expansion of the Information Communication Technology (ICT) sector, industry experts said on Wednesday.

Ali Bofulo, Head of Business with Pan African firm, iWay Africa Services, told Xinhua in Nairobi that the expansion of infrastructure, housing, transport and manufacturing industries is increasing the demand for ICT services.

"ICT is an enabler of the new investments that are coming into Africa," Bofulo said during a briefing on the latest trends and technologies relating to ICT enterprise infrastructure.

Iway Africa has subsidiaries in nine African countries, including Kenya, Uganda, Namibia, Zambia Zimbabwe and Uganda. However, it maintains a presence in a total of 44 African countries through partnerships.

Bofulo said Africa is also emerging as an innovator of new ICT solutions.

"Poor infrastructure has spurred numerous innovations that now being adopted by the rest of the world," he said, adding that ICT can help Africa catch up with the rest of the world.

Iway Africa Kenya Managing Director Kenneth Munyi said African firms are beginning to embrace the concept of leasing equipment rather than outright purchase of ICT equipment.

"This reduces the need for huge capital expenditure and involves paying a monthly license fee to access ICT services," Munyi said.

The managing director noted that rapidly changing technology means that hardware and software needs to be upgraded every few years. "So the leasing option means firms are not stuck with obsolete equipment," he said.

Munyi also said terrestrial connectivity is a huge challenge in Africa making wireless solutions more suitable for the continent.

According to iWay Africa, many African governments are currently rolling out internet connectivity in the rural areas. "This will reduce the digital divide between urban and rural areas, " he said. Endi