Evan Carmichael Top Header about About About facebook Twitter YouTube Google+

Africa needs a technology bubble



Free PDF Download
Preparing for 2008 - By John Wesonga

Name: Email:


According to the WSJ, silicon valley is on the brink of another technology bubble bust like what was witnessed in 1999. According to the article the emergence of "strange" website names such as Orgoo and businesses whose sole purpose is to sell t-shirts bearing the logos of internet companies(check out Startup Schwag) is evidence of a bubble and its eminent bust. I cannot even pretend to understand the dynamics of silicon valley, so I won't even argue with the writer of the article, but I'm left wondering when will Africa expereience it's own technology bubble?

A few years ago I had the pleasure of working with a web developer from India, and one day during our lunch break we began talking about the web development business in Kenya, in all the conversation he made one comment that resonated in my mind to this very day, "Kenya is currently in a web design bubble where companies can still charge $5000-$25,000 U.S. Dollars for websites and intranets, we had a similar situation in India until the market was saturated and now we do websites for us little us $250USD..your bubble will bust..." at that moment I didn't put much thought in to it but as I look at the last few years I relaise that the cost of web design is reducing significantly. Every web design company is undercutting its competition and only those that offer a niche product or have built a substantial corporate client base are able to sustain the high margins.But does this qualify as a "technology bubble"? or is it just a simple issue of supply now exceeding demand?


If we examine the technology bubble in Silicon valley we will notice that one of its hallmarks was a considerable increase in ICT investment and the sprouting up of web based businesses some of which had no sensible business plans. Billions of dollars was invested into these new ideas and the result was a boom in the economy on the upside, but a downturn when the businesses had to shutdown. The lessons learnt are yet to be forgotten.

In my view Africa needs a technology bubble, but ours must be a sustainable bubble if there is anything of the sort. A large investment in ICT based companies needs to be made, this will in turn spur growth and innovation in the industry. We need venture capitalists to make the financial investment in businesses and erase the notion that only silicon valley has all the ideas. Those are my thoughts on this.


Related Articles

  Wall Street, “Africa is Investing’s Final Frontier”
  SME's - collectivism yes or no
  SMEs - opportunities in Africa
  Quick Mobile Hits Around Africa
  SMEs and entrepreneurs in Africa
  V. D. The Future of China-Africa Economic Relations: FACTORS INFLUENCING THE GROWING TIES
  New Partnership for Africa’s Development
  “Africa:The Next Chapter” videos premiere
  African Technology Development
  ICT for Development
  SMEs - surviving the recession in Africa
  How Do African Businesses Get Start Up Capital?
  SME's - why is franchising not more popular in Africa
  Changing “Brand Africa”, an International Trade Forum magazine feature
  The Quandry: Building Web Apps in Africa
  4.4 References: Economic Report on Africa 2007
  II.a Merchandise Trade: TRADE AND CAPITAL FLOWS BETWEEN CHINA AND AFRICA
  Forget aid and money Africa needs IDEAS
  The African Market: Challenges for SMEs and Responses
  Rebranding Africa

Home > African-Accounts > John Wesonga > Africa needs a technology bubble >

Free PDF Download
Preparing for 2008 - By John Wesonga

Name: Email:

About the Author: John Wesonga

RSS for John's articles - Visit John's website
Born in Nairobi, Kenya, John Wesonga is a partner and the Technology Director of Multiple Choices, a communications company that builds web 2.0 applications for the Internet and provides strategic advice on Online Brands. His interests include: web development, blogging, mobile technology, Africa, and Kenya. His blog, Afropreneur, is one of the most popular online resources for news regarding business and technology in Africa. He is also currently a student at Strathmore University, where he is pursuing a degree in Business Information Technology.
Click here to visit John's website.
Dashed Line

More from John Wesonga
Google cocktail interesting and informative
Changing the mindset
Enhanced Google Maps for East Africa
Corporate Blogging Peupe ushers in a new era for Africa
Content for Africa by Africans

Related Forum Posts

Re: need advice Re: need advice
Re: Newbie from Africa Re: Newbie from Africa
Adventure travel to Africa. Adventure travel to Africa.
Re: Newbie from Africa Re: Newbie from Africa
Re: New top Banner - my feedback Re: New top Banner - my feedback

Share this article. Fund someone's dream.

Share this post and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
Share for a Cause



Worksheets
By: Evan Carmichael

8 Powerful Steps to Finding Your Passion

Do you have what it takes to be an entrepreneur?

Does your pitch suck?

Create a plan of attach to launch your new business.

8-Cover

Like this page? PLEASE +1 it! Evan Signature
Bottom Footer



Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Name:
Email:
Popular Articles

9 tips to increase ROI in PPC Campaigns

How to Start a Catering Business 1-2-3

7 Steps to Acquiring an Instant Intellect

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.