Africa Cloud Business Survey 2023 | Press Releases
Cloud transformation provides businesses with agility, productivity, and innovation — but more so, it is necessary for competing in a globally connected market
In a landscape of rapidly advancing technology, CEOs throughout Africa are strategically positioning their investments to secure a competitive advantage through emerging technologies, including generative AI, advanced analytics and industry cloud. Among these, the linchpin for optimising value is cloud transformation — the process of migrating work to the cloud (which can include data, apps, software programs etc.).
In Africa, 50% of companies have already adopted cloud capabilities in all or most parts of their business, and within the next two years, 61% of companies will have all their operations in the cloud. This is according to the PwC Africa Cloud Business Survey 2023. The report, which surveyed 2,209 business and tech leaders across Europe, Middle East and Africa (EMEA), assessed cloud adoption across public and private companies in seven major industries, including industrial products, financial services, consumer markets, energy, technology and media and telecommunications.
The urgent case for cloud transformation in Africa
Survey results indicate that for a majority of companies within EMEA, their cloud transformation journey has been gradual. However, with increasing pressure from clients, partners and competitors, most businesses have expedited their plans to develop new cloud-based solutions.
“Despite progress in cloud migration in Africa, businesses still face numerous region-specific challenges such as budget constraints, skills shortages, cybersecurity risks, and navigating the changing regulatory landscape on crucial topics like data sovereignty. Therefore, businesses need to learn how to strike a delicate balance between economic considerations, skill development, and the strategic advancement of their technological infrastructure.”
Our survey shows that organisations across EMEA are prioritising and pursuing large-scale migrations towards new technology platforms, with African organisations in particular opting for a more iterative approach. Figure 1 (below) shows that in Africa, many organisations are going beyond a mere ‘lift and shift’ with over 40% focusing on a combination of migration, modernisation and cloud-native development to change their businesses. Compared to businesses in EMEA, modernisation is often the first step in adopting cloud to enable real enterprise-wide transformation.
Figure 1: Primary reason for leveraging cloud technology
Survey results indicate that Africa’s adoption of cloud technologies, which aligns closely with EMEA’s, reaffirms a crucial imperative: that organisations must continue to accelerate their cloud journey to remain competitive in the global market.
“Increasing cloud adoption, especially in the near term, is not only key to giving businesses the edge when it comes to leveraging cloud scalability and innovation to meet diverse business needs, but is becoming increasingly recognised as an enabler of economic growth across Africa.”
In Africa, only 12% of businesses said they have a high cloud maturity — meaning they are all-in on cloud solutions and have it scaled throughout the business (this is comparative to 14% across EMEA). The largest portion of businesses in Africa (38%) said they had a medium cloud adoption maturity level, as they have adopted cloud in many parts of their business and evolved their operating model. Businesses that are adopting cloud are realising its tangible benefits, which means that budgets for cloud investments are expected to increase.
Over the next 12 months, CEOs’ top cloud-enabled priorities will include:
- Increasing productivity (42% in Africa, 49% in EMEA);
- Improving profitability (36% in Africa, 48% in EMEA);
- Saving on costs (36% in Africa, 43% in EMEA); and
- Enhancing stakeholder trust (28% in Africa, 38% in EMEA).
Makhari says that when assessing cloud adoption in Africa, we are in a unique position.
“Africa is dynamic and entrepreneurial, with a youthful population that is more open to technology disruption and transformational change. While we cannot compare Africa’s cloud adoption to other continents and regions yet, there is enormous potential for cloud solutions. We are on the cusp of major change and Africa’s customers and businesses are driving that change.”
Africa’s cloud-driven future
“The cloud transformation maturity curve goes hand in hand with data strategy maturity. Data is now a fundamental aspect of business architecture and the foundation of intelligence, automation and insight. Almost half of survey respondents in Africa have an enterprise-wide strategy for modernising their data distinct from specific cloud initiatives. To achieve this, they are streamlining their architectures to create an integrated view and are investing in the right governance structures, building the right skills and encouraging comprehensive alignment on business strategy. These efforts make all the difference when it comes to unlocking value from emerging technologies.”
Africa is emerging as a key player in the global cloud ecosystem, and excitingly, the strategic investments on the continent by major cloud providers signify the continent’s potential.
“With cloud transformation enabling businesses to navigate challenges, adopt emerging technologies and compete on a global scale, Africa’s cloud-driven future holds great promise.”
