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
      Anthropic to brief financial regulators on Mythos AI risk

      Anthropic to brief financial regulators on Mythos AI risk

      18 May 2026
      Another African nation licenses Starlink - Uganda

      Another African nation licenses Starlink

      18 May 2026
      The walkout that could hit every laptop and AI server - Samsung

      The walkout that could hit every laptop and AI server

      18 May 2026
      South Africa marks a full year without load shedding

      South Africa marks a full year without load shedding

      15 May 2026
      Absa's defence against frontier AI cyberthreats: more AI - Johnson Idesoh

      Absa’s defence against frontier AI cyberthreats: more AI

      15 May 2026
    • World
      Pop star sues Samsung for $15-million - Dua Lipa

      Pop star sues Samsung for $15-million

      11 May 2026
      OpenAI's new audio APIs aim for conversational voice agents

      OpenAI’s new audio APIs aim for conversational voice agents

      8 May 2026
      'It was my idea': Musk claims paternity of OpenAI - Elon Musk

      ‘It was my idea’: Musk claims paternity of OpenAI

      29 April 2026
      Pivotal week for US tech stocks

      Pivotal week for US tech stocks

      28 April 2026
      Sam Altman denies betraying Elon Musk. Shelby Tauber/Reuters

      Worries over OpenAI’s growth as Anthropic gains ground

      28 April 2026
    • In-depth
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
      Datatec is firing on all cylinders - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
      The last generation of coders

      The last generation of coders

      18 February 2026
    • TCS
      TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

      TCS+ | The Up&Up Group on the hidden cost of AI

      13 May 2026
      Michael Rossouw

      TCS+ | The retirement decision most South Africans get wrong

      6 May 2026
      TCS | The Cape Town start-up listening for TB with AI - Braden van Breda

      TCS | The Cape Town start-up listening for TB with AI

      4 May 2026

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      15 April 2026
    • Opinion
      Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

      Free calls, dead voice and Shameel Joosub’s Spanish ghost

      22 April 2026
      The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

      The conflict of interest at the heart of PayShap’s slow adoption

      26 March 2026
      South Africa's energy future hinges on getting wheeling right - Aishah Gire

      South Africa’s energy future hinges on getting wheeling right

      10 March 2026
      Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

      Apple just dropped a bomb on the Windows world

      5 March 2026
      R230-million in the bag for Endeavor's third Harvest Fund - Alison Collier

      VC’s centre of gravity is shifting – and South Africa is in the frame

      3 March 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
      • 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
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • 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

    The lesson Seacom learnt from its massive 2024 outage - Richard Schumacher

    The lessons Seacom learnt from its massive 2024 outage

    14 May 2026
    Vodacom's fintech machine tops 100 million customers

    Vodacom’s fintech machine tops 100 million customers

    11 May 2026
    Vodacom Group CEO Shameel Joosub

    Vodacom Group customer base swells past 237 million

    11 May 2026
    Company News
    Why the security operations centre is now a boardroom issue - Chris Norton Kaspersky

    Why the security operations centre is now a boardroom issue

    18 May 2026
    Netstar brings coding and robotics to inner-city Joburg - Collin Govender, Altron Group chief operating officer; Leona Pienaar, MES CEO; Marisa Jansen van Vuuren, Altron Group chief marketing officer; Innocent Mabusela, Jozi My Jozi CEO; and Warren Mande, incoming Netstar MD

    Netstar brings coding and robotics to inner-city Joburg

    18 May 2026
    7 key digital platforms to market your business online - Domains.co.za

    7 key digital platforms to market your business online

    14 May 2026
    Opinion
    Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

    Free calls, dead voice and Shameel Joosub’s Spanish ghost

    22 April 2026
    The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

    The conflict of interest at the heart of PayShap’s slow adoption

    26 March 2026
    South Africa's energy future hinges on getting wheeling right - Aishah Gire

    South Africa’s energy future hinges on getting wheeling right

    10 March 2026

    Subscribe to Updates

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

    Latest Posts
    Why the security operations centre is now a boardroom issue - Chris Norton Kaspersky

    Why the security operations centre is now a boardroom issue

    18 May 2026
    Netstar brings coding and robotics to inner-city Joburg - Collin Govender, Altron Group chief operating officer; Leona Pienaar, MES CEO; Marisa Jansen van Vuuren, Altron Group chief marketing officer; Innocent Mabusela, Jozi My Jozi CEO; and Warren Mande, incoming Netstar MD

    Netstar brings coding and robotics to inner-city Joburg

    18 May 2026
    Anthropic to brief financial regulators on Mythos AI risk

    Anthropic to brief financial regulators on Mythos AI risk

    18 May 2026
    Another African nation licenses Starlink - Uganda

    Another African nation licenses Starlink

    18 May 2026
    © 2009 - 2026 NewsCentral Media
    • 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}