Africa’s technology sector is entering a decisive phase in 2026, shifting from rapid connectivity expansion to execution-focused digital deployment that will determine competitiveness across industries, according to Sompa & Partners in their 2026 report on Doing Business in Africa.
After years marked by the spread of mobile broadband, mobile money and early artificial intelligence pilots, the report says businesses are now under pressure to turn digital tools into core commercial capabilities. Technology, it argues, is no longer a support function but a central driver of revenue, efficiency and market access.
Companies without strong digital, data and cybersecurity strategies risk falling behind as enterprises across manufacturing, agriculture, finance and healthcare embed automation and analytics into their operations. Strategic partnerships with telecommunications firms, cloud providers and AI platforms are expected to play a critical role in determining which firms scale successfully.
Sompa & Partners identifies several growth areas likely to attract capital and corporate focus in 2026. Private 5G and Internet of Things networks are enabling automation in factories, logistics chains and utilities. Digital payments, credit platforms and blockchain-based solutions are expanding beyond consumer finance into carbon markets, insurance and supplier financing. Precision agriculture and digital marketplaces are becoming more central to food systems, while telemedicine, digital diagnostics and AI-supported triage remain priority investment areas for healthcare.
The outlook also notes persistent structural constraints. Limited data centre capacity, unreliable power supply and uneven internet access continue to restrict scale, even as mobile broadband coverage improves. Fragmented regulatory regimes around data protection, telecom licensing and AI governance are adding complexity for companies seeking to operate across multiple African markets.
According to the report, Africa’s technology landscape in 2026 will be shaped by the maturity of connectivity, the operational use of AI, rising data sovereignty concerns and the digitisation of industrial value chains. Firms that invest early in resilient digital infrastructure, secure data practices and locally adapted AI systems are expected to gain a durable advantage.
Regulation is emerging as a central risk and opportunity. Sompa & Partners warns that compliance is becoming a non negotiable entry requirement rather than an optional best practice. Businesses that establish compliant operations in 2025 and 2026 stand to benefit from first mover advantages and lower adjustment costs, while those that delay face the prospect of market access restrictions, regulatory penalties and erosion of customer trust by 2027.
The next 18 months, from January 2026 to June 2027, are expected to be a defining period as technology regulations tighten across the continent. The report points to stronger enforcement, consolidation of national frameworks and progress on harmonisation initiatives such as the African Continental Free Trade Area Digital Trade Protocol and African Union strategies.
Companies prepared for this transition are likely to lead Africa’s next phase of digital growth, Sompa & Partners concludes, while those that remain unprepared face rising competitive and financial risks.
