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Africa poised for tech take-off.

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Africa's leading listed technology, media and telecoms (TWIT) companies have outperformed their peers in other sectors over the past 10 years, delivering annualised returns of 19% since 2004, compared with 11% across the WISCI Emerging Frontier Markets (EFWI) Africa index within the same period.

The analysis by law firm Freshfields Bruckhaus Deringer suggests TWIT companies in Africa may experience above-average growth in the next 10 years, with the TWIT sector seeing annualised returns of 19% compared with 6% for the African oil and gas sector.

The film says the traditional narrative about investment opportunities in Africa has been about oil and extractives but TWIT has also proved a real growth story. Africa represents a tremendous opportunity for an industry facing slowing revenue growth, market saturation, new technology challenges and declining profitability in mature economies. It is a market being taken very seriously by Silicon Valley for reasons including Africa's tech-acquisitive and growing middle class. Many major technology companies are aiming for multibillion dollar revenues in Africa by 2015.

The research looked at 2004-2013 market capitalisation development of TWIT companies among the 500 top African listed companies: nine media companies, 15 telecoms companies and 16 technology companies listed in Burkina Faso, Egypt, Kenya, Malawi, Morocco, Senegal, South Africa, Sudan, Tunisia, Uganda, Zimbabwe.

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Title Annotation:growth of technology companies in Africa
Comment:Africa poised for tech take-off.(growth of technology companies in Africa)
Author:Dalby, Alexa
Publication:African Business
Article Type:Brief article
Geographic Code:60AFR
Date:Aug 1, 2014
Words:213
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