South Africa losing to Kenya in tech race

South Africa appears to be losing its status as the preferred investment destination on the continent for international technology companies. By Duncan McLeod.

South Africa appears to be losing its status as the preferred investment destination on the continent for international technology companies. That honour, increasingly, is going to Kenya, which may be on the cusp of a technology-fuelled era of economic growth.

When apartheid ended in 1994, there was a flood of investment into South Africa by international technology companies. Microsoft, IBM, Intel, Motorola, Xerox, Hewlett-Packard: they all poured millions into establishing local offices to serve not only South Africa but often markets across Southern Africa and even sub-Saharan Africa. The view was that South Africa was the gateway to the continent.

Twenty years later, and perceptions are shifting.

In South Africa, economic growth has flat-lined. In the technology space, a weak policy making and regulatory environment where fast and smart decision making just doesn’t happen, coupled with a disastrous education system that appears incapable of giving youngsters a solid grounding in foundational subjects such as mathematics and science, are undermining prospects.