South Africa is one the countries to receive a 10 billion USD investment from the Global Community for telecoms, media and technology infrastructure. They are one of the African countries eyed by investors, as they have grown their market noticeably. This news has been welcomed by experts in the country with open arms, as it presents a great opportunity for the country, along with Madagascar and Kenya who are among the main beneficiaries of the deals.
Ian Jacobsberg, a partner at Hogan Lovells, said this investment is important for the country’s economy. The country’s fortunes might likely be boosted because they would play host to influential leaders from the largest TMT firms, investment banks and investors at the annual TMT Finance Africa Conference to be held in Cape Town on 28 March.
“An injection of capital of this size and nature can only be seen as a boost for the TMT sector in South Africa, and a vote of confidence at a time when it is most needed. It represents an opportunity for South Africa to capitalize on increasing international demand for technology and communications services, on the back of the growing virtual and online economy,” He said.
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TMT finance had said it expected 2019 to be an investment and M&A deals in TMT infrastructure in Africa with many large deals planned, particularly by telecoms infrastructure providers looking to make public flotation to tap into public investment fund appetite and fuel further growth plans record year.
But Jacobsberg however warned about graft and investor attitudes being the hurdle for smooth investments.
“However, one cannot escape the elephant in the room, being corruption and the perceptions around it, and from which the technology and communications sector has not been insulated. This may be one of the reasons that, despite deals such as Berkshire’s investment in Teraco, and a more sophisticated and developed IT industry than most, South Africa is lagging behind some other African countries in its apparent attractiveness to investors.”
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