SAP has put its money where its mouth is, today announcing a massive new investment of up to $500-million in Africa.
Robert Enslin, SAP executive board member and president of global customer operations at SAP, told a briefing of media from across the continent that Africa has joined a short list of countries that will enjoy accelerated investment from SAP to the extent of $500-million through 2020.
It is a stated goal of SAP to make Africa a $1-billion business within the next few years, and the new investment will help to drive that goal.
Key areas of focus for the new investment, says Enslin, include regional expansion into East Africa, West Africa and the Francophone region.
SAP will also target selected industries as well as on SMEs and on skills transfer.
He believes SAP has a lot to offer the continent in that it currently invests heavily in localising and customising its software solutions to address specific in-country solutions.
In addition, Enslin points out that 26% of SA employees and more than 25% of its customer base is in fast-growth markets, while a hefty 42% of its HANA customers are in these regions, helping to contribute 24% of the group’s total software revenues.
SAP Africa started doing business in South Africa in 1992, and today employs more than 700 people looking after more than 2 300 customers.
“Why do we believe now is the right time to accelerate the investment?” Enslin asks. “We believe the world needs a strong Africa, and that SAP can help it to be successful. The upside of this market is huge and SAP knows how to help companies to grow.”
Pfungwa Serima, CEO of SAP Africa, says he believes the time for Africa is now. “And we believe SAP is a standard,” he says. “We believe we have a responsibility on the continent to add value regardless of the industry.
Serima says SAP will focus on four industries in Africa: energy and natural resources; public sector; financial services; and telecommunications.
The four regions that the continent will be managed as are southern Africa, West Africa, East Africa and Francophone Africa. There is a possibility that Lusophone Africa (Portuguese speaking countries) will become a new region soon.
Derek Kudsee, chief operating officer of SAP Africa, also announced the opening of the SAP Innovation Centre in Pretoria, where the company will develop and drive its mobility strategy.
