Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Starlink LEO rival gaining momentum

      Starlink LEO rival gaining momentum

      7 August 2026
      ByteDance goes big - very big - on AI

      ByteDance goes big – very big – on AI

      7 August 2026
      ICT is becoming the centre of gravity at Reunert - Anthonie de Beer and Rob Godlonton

      ICT is becoming the centre of gravity at Reunert

      6 August 2026
      Why Discovery is going slow on AI coding agents - Derek Wilcocks

      Why Discovery is going slow on AI coding agents

      6 August 2026
      Google's Gemini leadership team has left the building - Demis Hassabis

      Google’s Gemini leadership team has left the building

      6 August 2026
    • World
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
      IBM shares crash 25% as AI upends software spending - Arvind Krishna

      IBM shares crash 25% as AI upends software spending

      15 July 2026
      Jony Ive's first OpenAI device: an AI smart speaker - Jony Ive and Sam Altman

      Jony Ive’s first OpenAI device: an AI smart speaker

      15 July 2026
      Stripe, Advent in talks to buy PayPal for $53-billion

      Stripe, Advent in talks to buy PayPal for $53-billion

      15 July 2026
      Memory crisis sends smartphone market into steep decline

      Memory crisis sends smartphone market into steep decline

      13 July 2026
    • In-depth
      The plan to stop AI from breaking the world - Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      TCS+ | Specops' Darren James on continuous trust in an AI world

      TCS+ | Specops’ Darren James on continuous trust in an AI world

      7 August 2026
      TCS+ | How AI is turning hardware into a subscription service - Shane van der Merwe Merchant West

      TCS+ | How AI is turning hardware into a subscription service

      6 August 2026
      TCS+ | Why South African workers must become supervisors of digital labour - Accelera Digital Group Cliff de Wit

      TCS+ | Why South African workers must become supervisors of digital labour

      31 July 2026
      TCS | Rapid deployment rules can't work without municipalities: ACT - Nomvuyiso Batyi

      TCS | Icasa’s rules skip the real bottleneck: ACT

      30 July 2026
      TCS+ | iStore Business on why Apple makes sense for SMEs - Sudesh Pillay and Tamia Nontsikelelo

      TCS+ | iStore Business on why Apple makes sense for SMEs

      30 July 2026
    • Opinion
      The author, Jannie van Zyl

      Selling vapour is corporate suicide in slow motion

      16 July 2026
      Brazil's online gambling crackdown is a lesson for South Africa

      How Amazon outmanoeuvred Starlink in South Africa

      15 July 2026
      The Popia problem with agentic AI - Herman Haasbroek

      The Popia problem with agentic AI

      14 July 2026
      The author, Fanie van Rooyen

      South Africa can still catch the AI wave – here’s how

      7 July 2026
      The author, Fanie van Rooyen

      The AI utopia South Africa can’t afford

      1 July 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Duncan McLeod » SA losing to Kenya in tech race

    SA losing to Kenya in tech race

    By Duncan McLeod9 June 2013
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Duncan McLeod
    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.

    Last year, when IBM decided to set up its first research laboratory in Africa, it chose Kenya, not South Africa, as the location for the facility. The Kenyan lab joined existing IBM facilities in the US, Switzerland, Israel, Japan, Ireland, India, China, Brazil and Australia.

    Over the years, the labs have been credited with inventing many of the foundations of the IT industry, including the relational database, computer disk storage and dynamic random-access memory.

    The Kenyan lab, which includes pre- and post-doctoral scientists and researchers from academia, government and industry, will conduct basic and applied research focused on solving problems relevant to Africa and contribute to the building of a science and technology base for the continent, IBM said.

    When Google chairman Eric Schmidt visited Africa in January, he didn’t travel to South Africa, spending time instead in East Africa and West Africa. In Kenya, he said Nairobi had emerged as a “serious tech hub” and could become the continent’s technology leader. He praised the country’s relative political stability (election violence in 2007 and 2008 notwithstanding), its use of the British legal system and its benign climate, saying these factors all contributed to its attractiveness as an investment destination.

    Google rival Microsoft chose Kenya as the site of its first “white-spaces” spectrum trial to test the feasibility of using television broadcasting spectrum for broadband. The list goes on.

    And it’s not only international companies investing in Kenya that have attracted attention. A number of technology innovations have been developed in Kenya itself in recent years that have garnered international attention.

    The most celebrated of these is M-Pesa, the mobile banking and commerce platform pioneered by mobile operator Safaricom. M-Pesa has made Kenya an international case study in m-commerce. Aided by a poorly developed formal banking sector, M-Pesa is now used daily by millions of Kenyans to buy goods and receive money. It’s since been exported to other markets, although the only other country where it’s enjoyed huge success is Tanzania, which also has a poorly developed banking system.

    Another Kenyan tech pioneer is Ushahidi, a nonprofit software company created in the wake of violence following the disputed 2007 election. Ushahidi developed open-source software that could be used to collect and visualise information on interactive maps. The software was used to show where outbreaks of violence were happening in Kenya, based on reports submitted by people on the ground, usually using their mobile phones. This year, Ushahidi is again attracting attention, thanks to its BRCK “backup generator for the Internet”, a communications device for markets with unreliable electricity supply. It’s raised more than $172 000 on crowd-sourcing website Kickstarter.

    Kenya’s government is now spearheading efforts to transform the country into Africa’s tech capital. Work has begun on an ambitious technology centre called Konza City that could eventually cost as much as $14,5bn. The government wants to attract international technology companies to invest in Konza, which will consist of a convention centre, a science park, hotels and shopping centres spread across a 5 000-acre site 60km south of Nairobi.

    If South Africa doesn’t think its position as the continent’s technology leader is threatened, it better think again.

    • Duncan McLeod is editor of TechCentral. Follow him on Twitter
    • This column is also published in the Sunday Times
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    BRCK Duncan McLeod Eric Schmidt Google IBM Konza M-Pesa Microsoft Safaricom Ushahidi
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleTalkCentral: Ep 86 – ‘Icasa’s war’
    Next Article MTN recaps itself

    Related Posts

    Google's Gemini leadership team has left the building - Demis Hassabis

    Google’s Gemini leadership team has left the building

    6 August 2026
    Solly Malatsi stakes South Africa's AI future on staying neutral

    Solly Malatsi stakes South Africa’s AI future on staying neutral

    5 August 2026
    Google Cloud, AI adoption gain momentum in Africa - Digicloud Africa

    Google Cloud, AI adoption gain momentum in Africa

    3 August 2026
    Company News
    African Bank signs on as GEC+Africa 2026 partner

    African Bank signs on as GEC+Africa 2026 partner

    7 August 2026
    What a cloud review reveals about how a company actually runs - LSD Open

    What a cloud review reveals about how a company actually runs

    6 August 2026
    Manufacturing from a garage is now a realistic business plan - MaxLaser

    Manufacturing from a garage is now a realistic business plan

    6 August 2026
    Opinion
    The author, Jannie van Zyl

    Selling vapour is corporate suicide in slow motion

    16 July 2026
    Brazil's online gambling crackdown is a lesson for South Africa

    How Amazon outmanoeuvred Starlink in South Africa

    15 July 2026
    The Popia problem with agentic AI - Herman Haasbroek

    The Popia problem with agentic AI

    14 July 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    TCS+ | Specops' Darren James on continuous trust in an AI world

    TCS+ | Specops’ Darren James on continuous trust in an AI world

    7 August 2026
    Starlink LEO rival gaining momentum

    Starlink LEO rival gaining momentum

    7 August 2026
    African Bank signs on as GEC+Africa 2026 partner

    African Bank signs on as GEC+Africa 2026 partner

    7 August 2026
    ByteDance goes big - very big - on AI

    ByteDance goes big – very big – on AI

    7 August 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}