BMI View: The IT markets in Ghana, Kenya and Nigeria all contracted sharply in 2014 and 2015 as adepression in the commodities complex hurt economic performance and resulted in steep currencydepreciation against the US dollar that eroded already weak purchasing power. This was as a reality checkon previous optimism regarding their economic growth trajectory and IT markets, as a lack of structuraland institutional strength was laid bare. The fortunes of the three markets are not however tied that closely,with Ghana and Nigeria more susceptible to further negative shocks in the short-term if the commoditiesmarkets take another turn downwards. However, under our core scenario we envisage improvedperformance over the medium term for all three markets, but caution that there is a long way to go beforethe rapid growth of IT spending observed in the higher income emerging markets is replicated in Sub-Saharan Africa.Latest Updates & Developments
- Ghana Total IT Market Sales: GHS590mn in 2016 to GHS1.1bn in 2020, a compound annual growthrate (CAGR) of +16.7% in local currency terms. The smallest market in our Africa IT coverage, Ghana'soil growth driver presents downside, but we have a stronger medium term economic outlook that shouldperformance improve from 2014 and 2015.
- Kenya Total IT Market Sales: KES47.3bn in 2016 to KES80.7bn in 2020, a CAGR of +14.3% in localcurrency terms. Less exposed to commodities, and with the most developed IT market in this report, webelieve Kenya has the strongest foundations for IT market development through the positive impact ofbroader based growth on consumer spending and a more diverse private sector that will see higherinvestment than in oil dependent markets.
- Nigeria Total IT Market Sales: NGN173.4bn in 2016 to NGN306.6bn in 2020, a CAGR of +15.3% inlocal currency terms. Nigeria is the largest market in the region, and has considerable long-term potential,but the economic situation in 2016 has major downside that could delay a return to growth for ITspending until later in the forecast period.
Table Of Contents
Ghana, Kenya and Nigeria Information Technology Report Q3 2016 BMI Industry View 7 SWOT 9 IT SWOT 9 Industry Forecast 11 Ghana 11 Latest Updates 11 Structural Trends 11 Table: Enterprise Trends - GVA By Vertical (Ghana 2015-2020) 15 Table: IT Industry - Historical Data And Forecasts (Ghana 2013-2020) 17 Kenya 17 Latest Updates 17 Structural Trends 17 Table: Enterprise Trends - GVA By Vertical (Kenya 2015-2020) 21 Table: IT Industry - Historical Data And Forecasts (Kenya 2013-2020) 22 Nigeria 23 Latest Updates 23 Structural Trends 23 Table: Enterprise Trends - GVA By Vertical (Nigeria 2015-2020) 27 Table: IT Industry - Historical Data And Forecasts (Nigeria 2013-2020) 28 Internet Technology Risk/Reward Index 29 Industry Risk Reward Index 29 Table: Middle East and Africa IT Risk/Reward Index, Q3 2016 32 Market Overview 33 Ghana 33 Hardware 33 Software 37 Services 40 Kenya 42 Hardware 43 Software 48 Services 51 Nigeria 55 Hardware 55 Software 60 Services 65 Industry Trends And Developments 69 Ghana 69 IT Hardware Trade 69 Table: Africa IT Hardware Trade, 2010-2015 69 Table: Ghana IT Hardware Trade, 2010-2015 70 IT Industry Analysis 70 Kenya 72 IT Hardware Trade 72 Table: Africa IT Hardware Trade, 2010-2015 73 Table: Kenya IT Hardware Trade, 2010-2015 73 IT Industry Analysis 74 Nigeria 76 IT Hardware Trade 76 Table: Africa IT Hardware Trade, 2010-2015 76 Table: Nigeria IT Hardware Trade, 2010-2015 77 IT Industry Analysis 78 Regulatory Development 81 Ghana 81 Table: NITA 81 Recent Developments 82 Kenya 84 Table: KICTA 84 Table: Kenya - 2013 ICT Masterplan Strategic Goals 86 Recent Developments 87 Nigeria 88 Table: NITDA 88 Competitive Landscape 92 Ghana 92 Retailers 92 Table: Selected Electronics Retailers 92 Table: Selected E-Commerce/Online Marketplaces 92 IT Vendors 92 Table: Intercom Programming and Manufacturing Company (IPMC) 92 Table: Persol Systems Limited 93 Table: RLG Communications 94 Kenya 94 Retailers 94 Table: Selected Electronics Retailers 94 Table: Selected E-Commerce/Online Marketplaces 95 IT Vendors 96 Table: Craft Silicon 96 Table: IBM 96 Table: Seven Seas Technology (SST) 98 Nigeria 99 Retailers 99 Table: Selected Electronics Retailers 99 Table: Selected E-Commerce/Online Marketplaces 99 IT Vendors 100 Table: Computer Warehouse Group (CWG) 100 Table: Systemspecs 102 Table: Zinox Technologies 103 Regional Overview 104 Demographic Forecast 108 Table: Population Headline Indicators (Ghana 1990-2025) 109 Table: Key Population Ratios (Ghana 1990-2025) 109 Table: Urban/Rural Population and Life Expectancy (Ghana 1990-2025) 110 Table: Population By Age Group (Ghana 1990-2025) 110 Table: Population By Age Group % (Ghana 1990-2025) 111 Methodology 113 Industry Forecast Methodology 113 Sources 115 Risk/Reward Index Methodology 115 Table: IT Risk/Reward Index Indicators 116 Table: Weighting Of Components 117