While Africa has its share of security issues, it has its share of economic growth as well. In fact, as a continent, it is growing at a faster rate than North America. This has spurred a big push in many African countries to modernize technologically which has given rise to many tech hubs and even a few tech cities. All of this begs the question: What are American tech companies doing to contribute to and capitalize on this type of growth? Here is a list of what three of the largest American tech companies have been up to in Africa.

IBM
IBM recently opened an office in Dakar, Senegal which the company believes will bring in roughly $20 billion by 2015. IBM is no stranger to the region as it sold supplies to South Africa in 1911. Recently, IBM has become more and more focused on Africa and has established a presence in 20 of Africa’s 54 countries. No doubt IBM is hoping to establish a bigger presence in many of the upstart tech hubs which have begun sprouting up all over the continent.

Microsoft
In an attempt to gain ground in the smartphone market as well as capitalize on Africa’s quickly growing tech industry, Microsoft has introduced its Microsoft 4Afrika initiative.  Microsoft 4Afrika will be producing a moderately price $150 smartphone. The phone will be marketed toward Africa’s middle-class which comprises one quarter of Africa’s billion people. Microsoft has plans with Nokia to release two more smartphones in the near future. This decision was likely influenced by Africa’s number one spot as the world’s fastest growing region for smartphones. The region has grown by 43% per year since 2000.

Google
Google chairman Eric Schmidt noted that Nairobi has become a remarkable tech hub and has the potential to become an African leader in innovation. However, Google seems to be losing ground in Africa as French based mobile operator Orange and Baidu, China’s answer to Google, have collaborated on a jointly branded smartphone. This comes as no surprise as China has been aggressive in its attempts to forge business partnerships all over the quickly changing continent.

Africa’s main draw to tech companies is that it continues to grow while larger economies have stalled. If this trend continues, those companies who are left behind investing in these developed markets may see their profits eclipsed by these fast growing economies.

-Pete Grapentien

Source The Economist