Huawei Cloud's Rapid Growth in South Africa

Huawei Cloud has experienced significant growth in South Africa over the past five years and aims to further expand its market share by launching additional cloud solutions, according to company executives. The demand for faster computing from both businesses and the government has attracted major cloud providers to the region. Huawei was the first international company to establish a local "hyperscale" cloud data center in South Africa in 2019.

Despite the growth, Huawei noted that its total revenue in the country remains relatively small, prompting the need for more innovative cloud offerings. Market research firm Africa Analysis projects that the South African cloud market will grow at a compound annual growth rate of approximately 26% from 2023 to 2028, reaching a value of around 113 billion rand ($6 billion). The increasing adoption of artificial intelligence among corporate clients is also contributing to rising expenditures on cloud services. Steven Chen, CEO of Huawei Cloud South Africa, emphasized that migrating to the cloud is no longer optional; the focus has shifted to how to transition quickly and effectively.