Telecom

African ICT Service Exports Grow by 5.4% from 2022 to 2023

African ICT Service Exports Grow by 5.4% from 2022 to 2023
Tuesday, 08 October 2024 18:46

Digital trade is experiencing impressive growth in Africa. Although several challenges remain, countries and regional institutions are making significant efforts to support the sector's development.

In 2023, Africa’s exports of information and communication technology (ICT) services reached $9.2 billion, marking a 5.4% increase from the previous year. This growth highlights the expanding tech sector across the continent, according to a report by Tralac (Trade Law Centre) on digital trade in Africa, published in September 2024.

The geographical breakdown of these exports shows that North Africa leads the market with $4.49 billion in ICT service exports for 2023. Following North Africa, East Africa exported $2.05 billion, while Southern Africa contributed $1.4 billion. West Africa and Central Africa reported exports of $1.06 billion and $240 million, respectively.

African digital service exports cover a wide range of areas. For example, in Ghana, business, specialized, and technical services, including business process outsourcing (BPO), accounted for 77% of total service exports, according to a 2023 report from the World Trade Organization (WTO). In Morocco, the outsourcing of engineering services, such as software development, electronic design, mechanical engineering, and civil engineering, has seen significant growth, increasing by 35% annually between 2019 and 2022.

Despite this positive trend, African exports of ICT services represent only 0.85% of the global total, as noted in the Tralac report. This indicates that the continent has substantial room for growth to become a key player in the global digital economy.

The WTO report also points out that a lack of harmonized regulations and standards among African countries hampers cross-border trade in ICT services. Additional challenges, such as inadequate infrastructure, a shortage of digital skills, and limited access to financing, slow down the widespread adoption of digital solutions.

Many African countries are implementing ambitious strategies to develop their digital ecosystems. The African Continental Free Trade Area (AfCFTA) has introduced a protocol on digital trade to harmonize regulations and facilitate online exchanges among African nations. Regional initiatives, such as the COMESA Digital Free Trade Area, also promote e-commerce and digital integration among member states.

The outlook appears promising. According to projections from the WTO, African service exports could reach approximately $74 billion between 2023 and 2040, with annual growth exceeding 7%.

On the same topic
• Google will set up four infrastructure hubs in Africa to connect new submarine cables.• The hubs will link Equiano and Umoja cables, adding landing...
• Sub-Saharan Africa spent nearly $7 billion on digital infrastructure in 2024, up from $6.3 billion in 2020.• Around 60% of these funds went...
5G penetration in Sub-Saharan Africa stands at 1.2% despite $28 billion in operator investments over five years. High smartphone and data plan...
• One Network Area to slash roaming costs for mobile data—just $0.005/MB—making cross-border internet access as cheap as home.• New tech like e-SIMs...
Most Read
01

From Dakar to Nairobi, Kampala to Abidjan, mobile money has become a lifeline for millions of Africa...

Africa's Boundless Future: How a simple mobile phone became a pocket bank for millions
02

Malawi votes in high-stakes presidential election Tuesday Economic crisis, inflation dominate vot...

Malawi’s Election Puts Incumbent Chakwera to the Test on Inflation and Fuel Shortages
03

Airtel Gabon, Moov sign deal to share telecom infrastructure Agreement aims to cut costs, boo...

Gabon’s Airtel, Moov to Share Towers Under Govt-Brokered Deal
04

Vision Invest invests $700m in Arise IIP, Africa’s largest private infrastructure deal in 202...

Saudi Arabia’s 2025 Shopping List Now Includes Industrial Parks in Africa — With a $700 Million Entry Ticket
05

Even though it remains the smallest "crypto-economy" in the world, sub-Saharan Africa shows that vir...

Sub-Saharan Africa Crypto Transactions Up 52% to $205B on Inflation, Inclusion Push
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.