Digital transformation in Africa and Middle East to hit $74 billion by 2026

Digital transformation spending in the region is forecast to accelerate at a compound annual growth rate of 16 percent over the five-year period (Shutterstock)

NAIROBI, Kenya - The digital transformation investments in Africa, the Middle East, and Türkiye, are predicted to double across the 2022–2026 period.

This is according to the latest forecast from International Data Corporation.

The global technology research, consulting, and events firm says spending in the region will accelerate at a compound annual growth rate of 16 percent over the five-year period, topping $74 billion in 2026 and accounting for 43 percent of all information and communications technology investments made that year.

Jyoti Lalchandani, IDC’s group vice president and regional managing director for the META region“For many organizations, the digital and tech investments they made during the pandemic to build resilience could be put to test in 2023 across key business dimensions such as customer experience, operations, and financial management, among others.”

The implementation of further digitalization in critical areas and a more rapid shift to a ‘digital business’ approach will be key to separating the thrivers from the survivors.

Lalchandani further added that organizations must not lose sight of their digital aspirations "no matter what the economy throws at us over the coming 12 months.”

He called for a focus on “clear and measurable outcomes, with digital spending needed to transition from building to scaling.

“Indeed, IDC predicts that by 2027, at least 30 percent of the C-suite’s focus will be on scaling innovation and operating a truly digital business. Automation will sit at the heart of this process, helping to reduce the cost of IT operations, address labor shortages, and increase the velocity of innovation,” he said.

Globally, IDC expects spending on digital technology by organizations to grow at eight times the economy in 2023, establishing a foundation for organizations to drive operational excellence, competitive differentiation, and long-term growth.

GAROWE ONLINE