Google and Oracle Accelerate Cloud Expansion in Africa to Tap into Booming economy

Google and Oracle Accelerate Cloud Expansion in Africa to Tap into Booming economy

Cloud-native startups in Africa are attracting major investments from tech giants, as the demand for cloud services compliant with data protection laws surges. McKinsey forecasts a global cloud value of $3 trillion in 2025, with $797 billion attributed to Africa and Europe.

Citing International Finance Corporation (IFC) statistics, Google’s Cloud director, Niral Patel, underscores the vast opportunities for cloud services in Africa. Recently, on February 2, Google Cloud launched its first cloud region in Johannesburg, South Africa, offering core services like computing, storage, networking, and security across the continent.

Oracle, in response to the growing demand for Oracle Cloud Infrastructure (OCI) services, plans to establish a public cloud region in Nairobi, Kenya, marking its second presence in Africa after the Johannesburg region opened in January 2022.

Competing with Microsoft Azure and Amazon Web Services, both Oracle and Google strategically position their cloud regions in compliance with prevalent data residency laws across Africa. Countries like Algeria, Gabon, Niger, and Morocco necessitate localized data, prompting these tech firms to establish a physical presence on the continent.

Moreover, Kenya, South Africa, Tunisia, and Uganda impose restrictions on cross-border data transfer, further emphasizing the need for localized cloud infrastructure. The surge in cloud computing investments is also fueled by increased continental access to broadband internet.

Africa’s advantage lies in its limited legacy IT systems, allowing businesses to leapfrog and adopt agile, scalable, and cost-effective cloud-native applications and platforms. McKinsey estimates a 25-30% annual growth in demand for cloud computing services in Africa.

Google and Oracle target the pulse of innovation by focusing on cloud-native startups, born and bred in the cloud, as the key players in Africa’s expanding tech ecosystem. McKinsey’s recent research highlights that companies making the leap into cloud adoption stand to gain significantly in terms of IT cost efficiencies and revenue uplifts.

Notably, cloud adoption in Africa is consistent across regions, with the highest levels (70-77%) in East Africa, West Africa, and Southern Africa. Both Oracle and Google are investing in developing cloud skills and talent, launching initiatives to train and certify African developers, students, and educators on cloud technologies and applications.

In conclusion, the strategic moves by Google and Oracle reflect not only a response to market demand but also an investment in the future of Africa’s tech landscape, leveraging the dynamic and thriving community of cloud-native startups.

Leave feedback about this

  • Quality
  • Price
  • Service


Add Field


Add Field
Choose Image
Choose Video