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September 15, 2025
Wingu News
East Africa has quickly become one of the most dynamic regions for cloud computing. By 2025, around 70–77% of enterprises across the region are using cloud services, placing East Africa among the continent’s leaders in digital adoption1. Unlike Europe or North America, where legacy IT systems slow down transitions, East African firms often build directly on public cloud platforms, which reduces costs and avoids the burden of outdated infrastructure.
Globally, cloud spending is expected to exceed $912 billion in 2025, with adoption in the Middle East and Africa expanding at 35% annually2. In Tanzania alone, the public cloud market is projected to reach US$265 million by 2025 with strong annual growth through to 20303. Ethiopia, though later to liberalise its ICT sector, is rapidly scaling its infrastructure and digital strategies, underpinned by major renewable power projects that are unlocking the energy capacity required for large-scale data centres.
Economic Drivers and Strategic Vision
Kenya's digital economy continues to serve as a regional benchmark, with e-commerce revenues forecast to hit $1.35 by 20254. While Tanzania is experiencing equally rapid digital growth, with its e-commerce market projected to generate $1.04 billion in 2025, driven by cloud-based platforms spanning retail, fashion, and electronics.5
Ethiopia's economic transformation increasingly centres on digital infrastructure. The launch of the Grand Ethiopian Renaissance Dam in September 2025, now Africa's largest hydroelectric facility at 5,150 MW, positions the country to meet the vast energy demands of cloud data centres while establishing energy security through renewable sources as the foundation for broader digital transformation.
Governments across the region have made cloud adoption central to their development strategies. Kenya's Digital Economy Blueprint, Rwanda's Vision 2050, Tanzania's National ICT Policy, and Ethiopia's Digital Transformation Strategy all recognise cloud computing as essential for inclusive growth, regional competitiveness, and improved governance.
Infrastructure Investment and the Renewable Advantage
Major infrastructure investments are reshaping East Africa's digital landscape, with international players committing substantial capital to new facilities across Tanzania and Ethiopia. A prime example is Wingu Africa's recent inauguration of a Tier III data centre in Addis Ababa, backed by over $15 million in investment and scalable to 12 MW of power, followed by an additional $60 million in funding to accelerate development across Ethiopia, Djibouti, and Tanzania.
This level of investment reflects growing confidence in East Africa's digital trajectory, with multiple international development finance institutions (DFIs) and private equity firms now targeting the region's data centre market. What's driving this confidence is partly the region's renewable energy advantage, which provides a crucial competitive edge. Tanzania's hydroelectric and solar capacity, Ethiopia's new dam, and Kenya's geothermal resources significantly reduce operational costs for cloud infrastructure while ensuring alignment with international sustainability standards. This combination of scale and environmental responsibility makes East Africa increasingly attractive for future data centre investments.
Sector Transformation Through Cloud Innovation
Cloud adoption is driving remarkable innovation across East Africa's major economic sectors. In financial services, Kenya's M-Pesa ecosystem remains the global gold standard, but Tanzania has also become a hub for mobile financial innovation, where banks and fintechs leverage cloud platforms to deliver secure digital lending, cross-border payments, and merchant services. Ethiopia's Homegrown Economic Reform Plan has begun liberalising financial services, enabling new digital payment providers who depend on cloud infrastructure to scale rapidly.
In agriculture, Tanzanian farmers are increasingly relying on cloud-hosted digital marketplaces and weather-prediction tools to improve yields and access international buyers, while Ethiopia, where agriculture remains the largest employer, is investing in cloud-based platforms that connect smallholders with market data, modern crop management advice, and logistics solutions.
Healthcare transformation is visible throughout the region. Tanzanian telemedicine platforms are connecting rural communities with urban specialists, while Ethiopia is digitising patient health records in urban hospitals as part of its Health Sector Transformation Plan. In education, universities across Kenya, Tanzania, and Ethiopia are embracing cloud platforms for virtual classrooms, student management, and international research collaborations, crucial developments for bridging gaps in higher education capacity.
Advanced Technologies Taking Root
The foundation of cloud computing is enabling wider use of advanced technologies. Artificial intelligence (AI) is now being integrated into logistics, retail and manufacturing across Kenya, Tanzania and Ethiopia. Tanzanian firms are piloting AI-driven logistics platforms, while Ethiopian startups are experimenting with AI analytics in agriculture and public health.
The Internet of Things (IoT) is gaining traction as well. Tanzanian agritech platforms use connected sensors to monitor soil conditions and optimise irrigation, while Ethiopian urban initiatives are testing IoT solutions in transport and energy distribution. Edge computing is becoming increasingly relevant, particularly in Ethiopia and Tanzania where connectivity outside capital cities can be inconsistent, making localised data processing critical to performance.
Navigating Persistent Challenges
Despite strong momentum, significant challenges remain. Regulatory frameworks for data protection and cross-border data flows remain fragmented, creating barriers for businesses operating across multiple East African markets. Skills shortages are acute in all three countries, with demand for cloud engineers, data analysts and cybersecurity specialists far exceeding supply.
Infrastructure resilience is also uneven. While Ethiopia now has abundant renewable power thanks to the Renaissance Dam, rural electrification remains limited, and both Tanzania and Kenya continue to face power stability challenges in certain regions. Balancing the roles of international and local cloud providers is another consideration. Global firms bring resources and proven systems, while local operators often have a better grasp of compliance and local market needs.
Regional Integration and Future Prospects
The African Continental Free Trade Area (AfCFTA) presents an opportunity to harmonise regulations and foster cross-border trade in digital services. If East Africa’s markets align around shared standards, the region will be better positioned to scale cloud-enabled services beyond national borders.
The convergence of renewable energy, policy ambition and enterprise adoption gives East Africa a unique position in the global digital economy. Kenya, Tanzania and Ethiopia together are no longer just catching up with global cloud trends; they're emerging as innovators and contributors to the international digital ecosystem.
Cloud computing in East Africa is not merely a technological upgrade; it has become the backbone of economic transformation, driving financial inclusion, modernising agriculture, expanding access to healthcare and education, and enabling a more integrated regional economy.
As cloud adoption deepens, the region is building the digital foundations for resilience, inclusivity and competitiveness in the decades ahead.
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