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US tech giants eyeing Africa’s education sector: On the road with Microsoft

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With rising minimum wages in countries such as China, Thailand and Vietnam, there has been hope that parts of Asia’s low-skilled manufacturing industry would shift to African countries, and in the process create much-needed jobs. However, before the continent’s manufacturing sector could even get started, it is now apparently facing an imminent threat from robots, which could replace millions of workers. For instance, a US company has already developed a sewing robot that can make as many t-shirts per hour as 17 humans.

As low-skilled employment positions become fewer, the demand for quality education is likely to continue growing. This situation is creating plenty of potential for the private sector to provide education solutions. For instance, Johannesburg Stock Exchange-listed ADvTECH has built a diversified company with numerous basic and tertiary education brands, while Mount Kenya University, which, in addition to establishing a number of campuses in Kenya, has also expanded to Rwanda and Somaliland. And on the other side of the continent, Ghana’s International Community School, with three main campuses, recently attracted investment from private equity firm AfricInvest.

But the opportunities in the continent’s education sector are not restricted to the operation of schools. As classrooms become digital, the provision of technology solutions is big business. This is the reason why some of the world’s top technology companies – such as Microsoft, IBM, HP and Intel – made the trek to Mozambique’s capital Maputo for the recent Innovation Africa summit, a gathering of African education and technology stakeholders. Each showcased their digital classroom solutions at the seafront Gloria hotel – a palatial, Chinese-inspired facility that is definitely an acquired taste.

A window into Microsoft’s business

I was invited to the conference as a guest of Microsoft, which gave me particular insight into the Redmond-headquartered company’s activities in Africa’s education sector. To be honest, I wasn’t aware that education is such a prominent part of its business.

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