South African cloud market boosts Huawei’s regional growth
Huawei is expanding its cloud services in South Africa, where cloud demand is set to rise by 26% annually until 2028.
Huawei Cloud has reported substantial growth in its South African market, with demand for cloud services rising from both government and private sectors. Since becoming the first international vendor to open a ‘hyperscale’ data centre in South Africa in 2019, the company’s client base has expanded to over 1,000 businesses across sectors such as financial services, telecoms, education, and government.
Over the past five years, Huawei Cloud‘s business in South Africa has increased more than 16 times, according to Jacqueline Shi, president of Huawei Cloud Global Marketing and Sales Service. Although the current revenue figures remain modest, the company is planning to launch more cloud solutions to gain a larger market share as cloud adoption grows across the country.
South Africa’s cloud market is anticipated to grow at an annual rate of 26% from 2023 to 2028, reaching a projected value of 113 billion rand ($6 billion). The adoption of AI is also expected to drive demand for cloud services, making cloud solutions increasingly essential for local businesses, said Steven Chen, Huawei Cloud South Africa’s CEO.
Huawei is competing with Amazon, Microsoft, and Google in the South African market, already operating three data centre locations in Johannesburg. The Chinese tech giant aims to capitalise on the region’s expanding cloud market and meet the increased demand for computing and AI solutions from local companies.
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