South Africa and Kenya remain the best places in Africa for technology investors to put their money, according to investment bank RMB.
The finding comes from RMB’s new report, called Where to Invest in Africa 2026/27. The bank’s chief economist, Isaah Mhlanga, said the building of data centres in both countries shows they lead the continent for tech investment.
“The likes of Kenya and South Africa have been doing quite a lot from a tech perspective,” Mhlanga told Business Day.
He said data centres need power to run. “You need countries that have reliable electricity, which would put South Africa, relative to the rest of the continent, in that space,” he said.
According to Business Day, South Africa has become the main spot for data centre investment in Africa. Earlier this year, President Cyril Ramaphosa said the country expects R50bn of investment in digital infrastructure over the next three years.
Data centres are buildings that hold computer servers, storage devices and network equipment. Asset managers like them because they are often backed by long contracts with customers. These contracts bring steady and predictable income.
The sector grew with the rise of cloud computing over the past 15 years or so. It is now also gaining from demand created by the AI boom, Business Day reported.
Companies growing their data centre business in South Africa include Teraco, Vantage Data Centres, Open Access Data Centres and Equinix. Cloud giants Amazon Web Services, Google and Microsoft Azure are also expanding in the country.
In Kenya, Airtel Africa broke ground in June on a 44MW data centre at Tatu City, near Nairobi. iXAfrica has raised funding to grow its footprint in the capital.
In 2021, Strive Masiyiwa’s Africa Data Centres announced plans to invest $200m in facilities in Nairobi.
Mhlanga also pointed to the high level of tech skills and talent in the two countries. “You need a lot of tech skills. Think of Kenya, even the likes of Rwanda,” he said.
He said these countries have invested in technology over the last four or five years. He added that signs suggest this trend is likely to continue.
South Africa is the continent’s largest economy. IMF projections put its nominal GDP at nearly $490bn, a position often contested by Egypt and Nigeria. The country also has a wide industrial base, advanced infrastructure and well developed financial systems.
Kenya is home to one of Africa’s main tech hubs, supported by a well developed fintech sector.
Venture capital for start-ups is another sign of tech investment. Venture funding is growing in South Africa. But the country still trails Kenya and Nigeria in attracting this capital, according to data from the African Private Capital Association.
Source: this article is based on reporting by Business Day. Image: Business Day. Written with the help of AI and published by the Tzaneen Voice Technology desk. See our Editorial Standards.
Werner Jacobs covers technology for Tzaneen Voice. Werner reports on mobile networks, data prices, internet access, smartphones, apps, AI, cybersecurity and South African tech companies. Each story explains what a new product, price change or policy means for ordinary users in South Africa.