10% increase in African IT spending in 2011

Kampala

Projections by global research firm, International Data Corporation (IDC) predicts that the IT market in Africa, the Middle East and Turkey will surpass $60 billion this year, up by 12.8 per cent from last year.

IDC says like last year, the growth would continue to be led by the recovery in IT hardware spending, which would grow 14.2 percent. It also predicts that spending on packaged software and IT services would gain momentum and grow 12 per cent and 9.2 per cent respectively.

IDC said IT spending in Africa will be increased by 10 per cent to $25 billion this year. It added that South Africa had recovered well with 8.7 per cent growth last year and an expected 7.5 per cent this year.

Growth in Egypt will continue to be rapid at more than 15 per cent while spending in the rest of Africa will grow 12 per cent to exceed $10 billion this year.

Jyoti Lalchandani, vice president and regional managing director for IDC in the Middle East and Africa, said: “This year IT markets in the Middle East, Turkey and Africa will continue to build on the post-downturn rebound in spending experienced in 2010. Investments to build IT infrastructure will gain further momentum in most countries, particularly in the public sector.”
IDC also expects public sector IT spending in key countries in the Middle East and Africa will rise 14.3 percent this year to $2.6 billion.

According to the Organisation for Economic Co-operation and Development (OECD) report, which analyses the usage of ICT in European countries, the information technology industry grew by 3-4 per cent last year, having declined by 6 per cent in 2009. The growth, however, is expected to exceed 4 per cent in 2011 but a return to pre-crisis levels remains unlikely,

The OECD Information Technology Outlook 2010 says that spending by governments and business is set to remain weak in the months ahead in OECD countries, with new investment in hardware or software unlikely in the short-term.

Source – Daily Monitor