The role of distribution in Africa

By Kathy Gibson – Africa’s gross domestic product (GDP) is showing healthy growth – expected to surpass 4% this year and hit $3,3-trillion.

And, as the continent flexes its economic muscles, new opportunities are opening up.

Healthcare, education, agriculture and mining are all positioned to grow and take advantage of digitalisation, according to Jonathan Newton, commercial director of leading IT distributor Miro.

This perspective is echoed by Werner Herbst, MD of First Distribution, who adds financial services and the public sector to verticals expected to surge in the years ahead.

“From our perspective, we see the biggest opportunities in the sectors where technology can deliver scale, resilience, and measurable impact,” Herbst explains. “What these industries have in common is a growing need to modernise infrastructure, improve operational efficiency, secure data, and deliver services digitally at scale.

“These requirements align directly with the areas where we support partners most strongly – cloud platforms, cybersecurity, hybrid infrastructure, data, and AI-enabled solutions.”

The ongoing digitalisation of business and governments across the continent is driving strong demand for IT hardware, software and services, points out Ruben Naicker, GM: SADC at DCC Technologies.

“As organisations modernise their environments and look to operate more efficiently across multiple markets, we’re seeing strong demand in core areas such as cloud enablement, cybersecurity, networking infrastructure, and data management.”

But it’s not just the big corporates and multinationals that are hungry for IT, Naicker adds.

“There is also significant opportunity in SMB and mid-market segments which are often under-served, but rapidly adopting technology – particularly in areas like cloud services, backup, and endpoint security.”

A key trend that Naicker is seeing is the fact that demand is increasingly cross-border. “As businesses expand regionally under frameworks like the African Continental Free Trade Area (AfCFTA), they require standardised, scalable IT environments which creates consistent demand for channel partners across multiple countries.

“For distributors and resellers, the opportunity lies in moving beyond product supply to value-added services including pre-sales support, solution design, and ongoing managed services,” he adds. “Those partners who can package solutions rather than just sell hardware are seeing the strongest growth.”

 

Technology a key enabler

Technology is a key enabler for Africa’s future success.

“It is the connective tissue that turns potential into execution,” says Naicker. “It enables scale, efficiency, and cross-border collaboration in ways that were not previously possible.

“Cloud, connectivity, and data platforms allow businesses to operate seamlessly across multiple countries. AI and analytics are helping organisations make better decisions in sectors like agriculture and mining, while digital financial platforms are driving inclusion across underserved markets.”

He adds that technology also reduces barriers to entry.

“Smaller businesses can now participate in regional, and even global markets, through digital platforms. In this sense, technology is not just an enabler, it is a multiplier of Africa’s economic potential.”

Herbst points out that technology is already acting as a significant accelerator across the continent.

“Cloud and hybrid platforms, secure digital infrastructure, and modern data services allow organisations to grow without the traditional constraints of capital-intensive IT models,” Herbst says.

The First Distribution model, he adds, is to make this technology accessible and executable through the channel. So it helps partners deliver solutions that are scalable, secure, and commercially viable – whether that’s enabling cloud adoption, supporting data-driven decision-making, or building resilient digital foundations for enterprise and government customers.

Newton believes that the most significant opportunities in Africa lie in extending reliable, high-speed connectivity to the underserved middle industries and communities.

“To make these rural and urban connectivity opportunities a reality, the technology must be scalable, highly resilient, and capable of supporting both fibre and fixed wireless access (FWA) deployments,” Newton says.

This informs Miro’s focus on a synergistic IP convergence stack that includes fixed outdoor wireless, fibre rollouts, WiFi, and wired networking for last metre connectivity, surveillance and IoT (Internet of Things).

 

Confronting the challenges

While the African opportunity is clear, several structural challenges remain.

Naicker points out that connectivity is still uneven across the continent, particularly outside major urban centres.

“Skills shortages, especially in advanced digital capabilities, continue to constrain growth,” he adds.

“Logistics and infrastructure present another layer of complexity. Moving goods across borders can still be inefficient and costly, despite progress under AfCFTA.

“Regulatory fragmentation also creates friction, as businesses must navigate different compliance environments in each market.”

Naicker says that addressing these challenges requires coordinated effort between governments, private sector players, and ecosystem partners.

“Encouragingly, we are seeing progress, but consistency and execution remain key,” he says.

According to Newton, a significant hurdle that still needs to be overcome is the extreme currency devaluation in several SADC nations – most notably in Zimbabwe, Malawi, and Angola.

“In these markets, our partners face a double-edged sword: the cost of importing hardware becomes prohibitive as local currencies lose value, and repatriating funds (getting money out of the country) is proving to be a massive challenge due to strict exchange controls and a lack of US dollar liquidity.”

A consistent skills gap is another challenge, Newton says. “But we are actively closing this by offering in-person training in the countries we serve to ensure that our partners can effectively support the products and services they offer to their customers.”

Newton believes the adoption of AI tools in Africa will also be critical in closing the skills gap. “This means reliable and stable Internet connections are even more important.”

The challenges confronting Africa are many and varied – but they are well understood, says Herbst.

“Skills shortages, uneven infrastructure maturity, and operational complexity remain barriers in many regions,” he points out.

“Connectivity continues to improve, but it is still inconsistent, and organisations often struggle to move from technology adoption to long-term value creation.”

This is where distirbutors must go beyond logistics, Herbst adds. “For instance, we invest heavily in partner enablement, presales support, technical training and lifecycle services. Reseller partners need to build sustainable practices, not just transact, so they can support customers effectively as digital environments evolve.”

 

Logistics and tariffs

Distributors face their own unique challenges in moving products around the continent.

According to Naicker, tariffs can be a minefield, with structures varying significantly between countries. “While AfCFTA is working to harmonise trade, implementation is still evolving.”

Logistics is another major factor. “Infrastructure limitations, border delays, and high transport costs can impact efficiency and pricing,” he explains. “In addition, currency volatility and regulatory complexity add further layers of risk.”

Naicker says that overcoming these challenges requires local expertise, strong partnerships, and a flexible operating model that can adapt to different market conditions.

Herbst agrees that complexity comes from a variety of sources – from logistics and customs processes to tariffs, regulation and infrastructure variability between countries.

“Access to credit also remains a key challenge and, in many cases, is one of the largest obstacles for African partners when it comes to scaling and sustaining growth,” he says.

“However, we are seeing a fundamental shift,” Herbst adds. “Cloud services, software platforms, and consumption‑based models increasingly reduce reliance on physical distribution.

“At First Distribution, we leverage these models alongside regional logistics hubs, digital fulfilment platforms, and local support structures to simplify route‑to‑market for both vendors and partners.”

From Newton’s perspective, arguably, the most pressing challenges are shifting compliance and US dollar volatility.

“The regulatory and economic landscape is highly volatile,” he explains. “We are increasingly facing shifts in compliance laws which immediately add unexpected costs to a deployment. The additional time this adds to go to market further compounds these costs.

“When you combine these changing requirements with the constant fluctuations of the US dollar, maintaining stable, predictable pricing for our channel partners becomes challenging,” Newton says.

At the same time, logistics and red tape can be a problem. “Cross-border documentation and inconsistent technical standards across SADC member states remain a bottleneck.”

 

The future looks bright

Smart agriculture, IoT and mining are all key drivers of future growth on the continent, says Newton. “The verticals are all fueled by their growing need for reliable connectivity to enable high-performance technologies.”
At the same time, Miro is seeing a shift towards managed services, where partners use cloud-management platforms to manage a client’s entire WiFi and surveillance stack remotely.

“Overall, we see massive growth potential throughout the SADC region as member countries continue to modernise their national ICT backbones and seek ‘best-of-bread’ wireless alternatives to traditional infrastructure,” Newton adds.

In terms of technology directions, Herbst believes future growth will be driven primarily by cloud services, cybersecurity, data and AI platforms with vertically focused solutions addressing specific industry needs.

“Geographically, we continue to see strong scale in Southern Africa, while East and West Africa present significant growth opportunities as cloud adoption accelerates and local ecosystems mature,” he says.

Naicker agrees that future growth will probably come from a combination of vertical and horizontal expansion.

“Vertically, sectors such as financial services, public sector, healthcare, and education are set for significant transformation through digital adoption,” he says.

“From a solutions perspective, cloud services, cybersecurity, data analytics, and AI-driven platforms will see strong demand as organisations modernise their operations.”

Geographically, DCC Technologies expects continued growth in East and West Africa, alongside deepening opportunities within the SADC region.

“As intra-African trade increases, businesses will increasingly look beyond their home markets for expansion,” Naicker says.

 

The role of the channel

The channel is central to Africa’s growth story.

“Given the diversity and complexity of the continent, no single organisation can operate effectively in isolation,” Naicker explains. “Channel partners provide local market knowledge, customer relationships, and the ability to deliver solutions in context. They bridge the gap between global technology vendors and local market needs.

“As the African market becomes more interconnected, the role of the channel will evolve from traditional distribution to value-added services, integration, and advisory,” he adds. “Those partners who can combine technical capability with deep regional insight will be the ones who unlock the most value.”

The channel is central to First Distribution’s business in Africa, Herbst says.

“Partners are closest to customers, understand local realities, and deliver implementation, support, and managed services that technology alone cannot provide,” he says.

“Our responsibility as a value-added distributor is to enable the channel to scale through access to technology, skills development, commercial models, and lifecycle support.

“In Africa, success is built on trust and long-term relationships – and the channel is where that trust lives.”

Newton agrees that the channel acts as the critical integrator.

“Because we serve a diverse geographical area, our network of partners and local sub-distributors are the ones who translate these global brands into local solutions. They ensure that a school in Zambia or a mine in Namibia gets the ideal solution that is supported locally.”