AV Magazine
Africa is projected to be the world’s second-fastest-growing economic region, with a growth rate of four per cent according to the IMF. Adrian Pennington highlights a huge and diverse region still recovering from the pandemic.
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In 2024, Africa is projected to be the world’s second-fastest-growing economic region, with a growth rate of four per cent, as per estimates provided by the International Monetary Fund (IMF). This places Africa behind only Asia in terms of economic expansion.
In terms of pro AV however the vast region of the Sub-Sahara is a minnow, subsumed under the Europe dominated EMEA umbrella in AVIXA reports despite generating the strongest growth in EMEA, with a six per cent CAGR from 2020-2025, growing from $1.7 billion to $2.2 billion during that time.
Of that the vast majority is governed by just one market: South Africa. It’s not a stretch to say that AV in Sub-Sahara is centred on Cape Town and Johannesburg.
A positive view of the industry in South Africa is provided by Yassine Mannai, associate director of sales for MEA at Shure. Calling it “a vibrant and dynamic market” he points to factors such as increasing digitalisation, the need for effective communication and collaboration tools, advancements in display tech, and the growth of live events as drivers.
The Nambian government Cabinet Chamber located in a listed building in Windhoek has a sound reinforcement and visual display system specified by Gadgets Namibia Solutions and delivered through SAW Namibia. The brief included preserving the historic interior finishes. Kit includes Pixel Plus LED screens, Novastar LED controller, Sennheiser TeamConnect 2 ceiling microphones, Audac loudspeakers and a Taiden digital conference mic system. Video routing/switching is via Atlona with Q-SYS control.
Pandemic’s legacy
Most commentators though are more downbeat. The pandemic “had a disastrous impact on all economies in Southern Africa,” says Fred van der Merwe, CEO Karibu Africa Technology based in ‘Joburg’ and distributor of Utelogy. “The resilience of the economy to a great extent determined the rate of recovery and South Africa, with its shrinking economy, felt the impact very severely.”
The pro AV climate in South Africa is “marked by volatility” according to Aadil Matwadia, commercial audio specialist at Proaudio Africa, Powersoft’s local distributor. He says this is primarily influenced by factors such as exchange rate fluctuations and rolling blackouts that affect all industries.
Joppie Maritz, MD, Stage Audio Works Namibia is scathing. He calls the South African Government, including municipal structures and State Owned Enterprises (SOE) “riddled with fraud, corruption and wasteful expenditure, rendering most of these entities close to insolvency.
He reports that of the 257 municipalities in SA, 66 have been declared dysfunctional with 151 municipalities on the brink of collapse. Out of the 19 major SOEs that are expected to operate like businesses and generate profits, only one managed to receive a clean audit in 2023. Some R22 billion (EUR 1.07 billion) losses were attributed to wasteful expenditure and irregularities from the state between 2019-2024, according to BusinessTech.
“Historically, government spending triggered economic activity but because of the financial disaster in government this is no longer happening,” says Maritz.
“Decision processes have lengthened by two to three years with the focus on cheap rather than quality.”
Generally, he feels South Africa’s technology adoption is the same period behind the rest of the world “although the adoption and implementation of hybrid solutions has narrowed this gap.”
Tech innovators
The South African economy is a dichotomy where large multinational companies and blue-chip financial institutions are profitable and operate with a first-world mindset. In contrast, notes van der Merwe, there is a plethora of SMEs and micro-enterprises which struggle to maintain modern and efficient working environments and ‘make do’ with simple but perfunctory technological solutions.
That’s not to say there aren’t opportunities. “Many countries in sub-Saharan Africa are seeing massive economic growth driven by foreign investment, leading to opportunity for pro AV with both new and established entrants,” says Paul Fraser, managing director of Cape Town systems integrator, AVT.
South African companies in particular tend towards wanting to be technology innovators, he adds, but there are many other factors that affect the purchasing market, such as electricity supply and political uncertainty.
“It is key to hedge this risk by having a spread of services into multiple verticals,” Fraser advises. “There’s still risk in terms of in-country skills, difficulties with the importation of hardware, and the lack of local warranty or support. Hardware imported though unofficial channels would not have a local warranty. AVT ensures that we procure through official channels, as well as have a network of local service providers that are based in countries outside South Africa, who we support with our own engineering skills.”
Sectors that were particularly hard hit by Covid were the travel, hospitality and live entertainment markets. In contrast, reports van der Merwe, the corporate AV market in SA “maintained a reasonable level of activity while companies deployed work-from-home technologies. This brought about a shift in the mindset of both employers and employees who started to experience the power and flexibility of videoconferencing.”
Rupert Denoon, regional sales director for Crestron essays a similar trajectory. During the initial phase of the pandemic, he says, many organisations refrained from substantial investments in pro AV, as remote work became prevalent, leading to a surge in demand for home-based video and audio conferencing solutions.
However, the return to the office ushered in the era of hybrid working. “This shift prompted companies to adapt, investing in advanced video, audio, and collaborative solutions for their main meeting rooms,” he says. “Recognising the necessity of accommodating the new work dynamics, organisations sought to equip these spaces with cutting-edge technology.”
Van der Merwe reports that SA’s corporate market has been experiencing a spending boom over the past 18 months, driven mostly by the deployment of Microsoft Teams Room functionality and associated hardware.
Signals from the last financial quarter indicate that component shortage is having less of an impact on the availability of products. “As businesses now bring more employees back to the office environment, the demand for pro AV is experiencing a rapid and significant uptick,” says Denoon. “This trend marks just the beginning, with sub-Saharan Africa witnessing a surge in the adoption and integration of pro AV technologies.”
Crestron has an ‘experience space’ in Johannesburg with “meticulously recreated real-life scenarios for smart building displays, incorporating integrated meeting rooms, hot desks, training facilities...” explains Denoon.
Investing in education
Turning to the education sector, it’s not a surprise to learn that the pandemic drove adoption of hybrid technology. In South Africa it seems the majority of schools adopted Google’s offering and used Zoom as a UC platform. AVT has been working with Stellenbosch University to modernise its classroom environment to enable remote learning. “The University takes this project very seriously as a growth driver, and has significantly invested in the project both financially and in terms of time,” says Fraser.
In the tertiary education market van der Merwe observes two divergent approaches with some institutions deploying Zoom while the majority went the Microsoft route. Recently, some institutions have abandoned Zoom in favour of Microsoft. The deployment of hybrid teaching venues has continued rapidly here and is expected to continue well into 2025.
Denoon refers to “the remarkable adoption” of collaborative technologies in meeting spaces and classrooms. “Educational institutions in Sub-Sahara have embraced distance learning, leveraging the interconnectedness of classrooms across campuses through AV-over-IP. This strategic use of real estate ensures an enhanced collaborative learning experience, facilitated by the growing adoption of pro AV.”
Significant advancements
The most significant advancements are observed in UC, AV-over-IP, and wireless presentation and conferencing. The regions showing the biggest growth are South Africa, Nigeria, Kenya, Ghana and the DRC, Creston reports.
Post-Covid in the region, the events and hospitality sectors have endured “a very slow financial recovery” with an even slower technological recovery. Adds Denoon: “Due to the years of lost revenue, there’s been very little investment in new equipment as companies extract the maximum life out of existing hardware. However, the past twelve months has seen a recovery of the capex investment in this industry.”
Matwadia supports this highlighting a noticeable surge in business within the rental and installation market. “This uptick can be attributed to factors including the rebounding economy post-pandemic, increased investment in infrastructure projects, and the growing demand for digital communication solutions.
“Additionally, SA’s pro AV sector is witnessing significant growth in hospitality, retail, and corporate events, driven by the need for immersive and engaging customer experiences. Economic hubs like Gauteng and Western Cape attract a higher demand for pro AV services to support events, conferences, and corporate functions.”
South African provinces like Gauteng, Western Cape, and Limpopo are characterised by their economic significance, concentration of businesses, and vibrant event landscapes. Gauteng, home to Johannesburg and Pretoria, is the country’s economic powerhouse, attracting a diverse range of businesses and events.
Similarly, the Western Cape, with Cape Town as its centerpiece, boasts a thriving tourism industry and a bustling corporate sector. “Limpopo is known for its natural beauty and cultural heritage and sees significant activity in hospitality and tourism-related events,” says Matwadia adding that all these regions offer fertile ground for pro AV businesses to thrive.
Away from SA
Across other countries in sub-Saharan Africa, the pro AV climate varies. For instance, Matwadia says the Botswana pro AV market appears to be relatively stable with consistent demand. AVT spies growth in other major cities, such as Lagos and Gabarone.
Shure’s Mannai delivers the following snapshots: Nigeria has a growing pro AV market, “driven by sectors such as banking, oil and gas, telecoms, and entertainment”. Kenya is a leading market for pro AV in East Africa “with a strong technology infrastructure and an emerging middle class”. Ghana has experienced “significant recent economic growth”, and in Tanzania the demand for digital signage, audio systems, and conferencing solutions has increased, as businesses and organisations modernise their infrastructure.
Popular tourist destinations like Zanzibar (Tanzania), Cape Town, and Victoria Falls (Zimbabwe/Zambia) “attract a significant amount of pro AV activity due to the hospitality and tourism industry,” he reports.
Green and smart
Despite issues around security and electricity, substantial efforts are being directed toward investments to transition organisations off the grid and promote environmentally sustainable practices. “SA and Kenya are investing in green projects such as solar farms and wind power installations,” says Mannai, requiring solutions for monitoring, data visualisation, and remote collaboration.
The focus on creating smart cities (ie. Lagos, Nairobi, and Cape Town) and lifestyle estates provides opportunities for security systems. “Pro AV becomes crucial in connecting homes, automating processes, and furnishing smart cities with essential amenities like signage systems, sports fields, entertainment facilities, restaurants, and fitness centres,” notes Denoon.
“I’ve realised that approaches effective in first-world countries regarding sales and technology may not always yield the same results locally,” he says. “Adapting and modifying certain elements in one’s approach can lead to remarkable outcomes.”
Pro AV needs to pivot
Another key lesson for those keen on doing business in the region is the importance of adaptability and innovation. “Businesses that have embraced digital transformation and leveraged pro AV to enhance their operations and customer experiences have seen positive outcomes, including increased revenue and market share,” shares Matwadia. “The ability to pivot quickly, identify emerging trends, and tailor solutions to meet evolving customer needs is crucial.”
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