Frost & Sullivan Business News

South Africa’s Broadband Market Revenues to Experience Significant Growth, Says Frost & Sullivan

Frost & SullivanThe South African broadband market has consistently shown significant growth rates of over 30% in the last two years, and according to a Frost & Sullivan report, this positive trend is expected to continue for the next two years.

Despite the expense of network infrastructure rollouts, South Africa’s top operators are still engaged in the crucial activity of increasing broadband penetration in South Africa, says the Frost & Sullivan report. The report adds that there are immense opportunities for internet service providers (ISPs) and vendors because all electronic communications network services (ECNS) license holders are currently permitted to self-provision. Read the rest of this entry »

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Seacom Cable a Basis for Growth in Africa, Say Analysts

Contractors laying fiber optic cable in Kenya. About 10 new undersea connections are expected to serve Africa within a year.

Contractors laying fiber optic cable in Kenya. About 10 new undersea connections are expected to serve Africa within a year.

The opening of a fiber optic cable providing broadband Internet service to millions of people in Southern and Eastern Africa is part of an ambitious plan to expand Web access and help spur Africa’s economy and technology industry.

The cable, built by Seacom, a consortium 75% controlled by African investors, is the first of about 10 new undersea connections expected to serve Africa before the middle of next year.

The expansion will cost about $2.4 billion and will help connect Africa with Europe, Asia, and parts of the Middle East at higher speeds and a lower cost. Read the rest of this entry »

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Southern Africa Set for a Flood of Renewable Energy (RE) Projects, According to Frost & Sullivan

Solar EnergyDespite the considerable potential that exists to produce electricity using renewable energy (RE) in Southern Africa, RE projects have been largely limited to off-grid, small-scale applications. However, the renewable energy market in South Africa is expected to grow exponentially in the next few years, owing to the announcement of the renewable energy feed-in tariff made in March 2009.

New analysis from Frost & Sullivan, Southern African Renewable Energy Equipment Market, finds that the Renewable Energy industry earned revenues of $28.4 million in 2008 and estimates this to increase nearly tenfold by 2015, to reach $262.3 million. This will include projects to develop energy from solar photovoltaic, solar thermal, wind power, and biomass sources. Read the rest of this entry »

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Information Technology (IT) Outsourcing in Nigeria to Grow by 500% in 7 years to $330 Million Industry, Reveals Frost & Sullivan

IT Outsourcing
Although the Nigerian Information Technology (IT) infrastructure market is in its infancy, key sectors such as the financial, telecommunications, and oil and gas industries have begun outsourcing elements of their IT functions to third parties. Technological developments, government promotion of ICT, and Nigeria’s exposure to the global stage have provided additional growth stimulus.

In Frost & Sullivan’s new report on IT in Nigeria titled “Nigerian IT Infrastructure Outsourcing Market”, Frost & Sullivan finds that the outsourcing market in Nigeria earned revenues of $58.0 million in 2007 and estimates this to reach $330.0 million in 2014 (this represents close to 500% growth in 7 just 7 years).

“The unreliable power supply in Nigeria is promoting the growth of outsourced services such as disaster recovery and dedicated hosting,” notes Frost & Sullivan Research Analyst Mpho Moyo. “This is because companies need to have contingency measures in place to ensure business continuity during power failures.” Some business requirements may demand 24-hour access to networks or e-mail. Read the rest of this entry »

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Power Rental Services in Africa to Double by 2014 – Frost & Sullivan

Power GeneratorThe use of power rental equipment is becoming increasingly important in sub-Saharan Africa to alleviate the current electricity challenges that the region faces.

Despite customers’ preference for buying generator sets rather than renting them, power rental companies that are able to provide power rental services at a competitive price with robust after-sales support can expect to gain significant returns.

According to a recent Frost & Sullivan report, “Power Rental in Key African Markets”, power rental markets in Angola, Botswana, Egypt, Kenya, Nigeria, Mozambique, and South Africa together earned revenues of $79.3 million in 2007. The report estimates that this revenue will more than double by 2014 to $164.2 million. “A combination of limited generation capabilities, robust economic growth, and more attractive payment models will support market expansion,” notes Frost & Sullivan Industry Analyst Jeannot Boussougouth. “In addition, a strong pipeline of infrastructure development projects will keep the market bullish over the long term.” The power rental market is set to remain robust despite a lack of a rental culture in many African countries. The below 100KVA range, which accounted for 46 per cent of the total demand in 2007, is poised to continue as the most important power range. Read the rest of this entry »

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