Realizing digital transformation, developing digital economy’s role in Ethiopia

(Wingu Africa’s Ethiopia data center receives Tier III certification)

In Ethiopia, Data center market has been gaining a new momentum since 2020, due to the fast development in the digital sector. Ethiopia’s digital transformation strategy is bringing new developments in the digital sector and the development of data Centers gains new momentum by the private sectors both from local and foreign companies. Notable local and foreign companies have been investing in the sector since recent years so as to exploit the untapped potential of the sector. The policy reforms, the digital strategy, infrastructural developments and the continued development of digital connectivity attract private investors in the data center development.

Similarly, smart city initiatives, the development of digital platforms especially digital finance and the fast growth of digital connectivity in the country attract Data Center market in Ethiopia. A study entitled “Ethiopia Data Center Market – Investment Analysis & Growth Opportunities 2023-2028” noted that increasing demand in digitalization, rising number of internet users and drivers of digital transformation across various sectors encourage data center market in Ethiopia.

The government’s strategic investments and reforms to realize digital transformation and digital connectivity create conducive environment for the industry. Accordingly, data center development had showed steady growth during the past three years with new investors such as Raxio Data Center, Wingu Africa Data Center, Safaricom and other notable companies joining the market in Ethiopia. In addition, the growing renewable energy sources and growing telecom infrastructure including 5G network, Data Center market continues to attract more investors. According to the above article, the development of data center market revenue in Ethiopia is expected to show an annual growth rate of 7.24%, resulting in a market volume of US$214.80m by 2028.

Wingu Africa Limited is among the notable foreign investors entering in data center market in Ethiopia.It joined the market in Ethiopia in 2020. Wingu Africa inaugurated its data center facility in Addis Ababa, located in the Ethio ICT Park before a year and half. The construction of the colocation facility of Wingu Africa took two years to see completion costing 50 million USD. Starting operations a year ago, Wingu Africa announced on Tuesday that its data center facility in Ethiopia has just received Tier III certification by Uptime Institute after fulfilling all the eligibility criteria required for the Tier III certification of its constructed facility.

According to the company, the successful completion of the eligibility criteria for Tier III certification is the successor of its recent Tier III certification of Design Documents. The new achievement marks a significant milestone in the company’s commitment to excellence and reliability in the data center industry. Uptime Institute is a Global Digital Infrastructure Authority, headquartered in New York. The certification of Wingu Africa’s data center facility in Africa by the institute confirms the data center’s highest standards for concurrent maintainability and fault tolerance, according to the company.

The achievement demonstrates the company’s efforts towards providing top-tier data infrastructure solutions to meet the evolving needs of its clients, Wingu Africa noted on its statement. The company stated that it consistently works to ensure the reliability and efficiency of its data center services and the Tier III certification is the outcome of its continued efforts to fulfill the highest standard criteria in the industry.

“The attainment of the Tier III certification represents a significant milestone in Ethiopia’s digital transformation journey, signifying the nation’s strengthened readiness to embrace the opening up of telecommunication and the financial sector,” the company stated adding since it started investment in 2020, the Ethiopian government supported the company to realize its investment. Company’s Chief Strategy Officer, Nicholas Lodge said that the support and enabling environment has helped the company to achieve this milestone in certifying Tier III certification of its Ethiopia data center within short period of time

ICT and Digital Economy State Minister with Ministry of Innovation and Technology (MInT), Yeshurun Alemayehu (PhD) louds the activities being underway by Wingu Africa in the data center industry adding the Tier III certification is the result of the company’s efforts. Yeshurun stated that the certification is a notable achievement for the company and for Ethiopia as well as it promotes Ethiopia’s digital transformation journey.

Emphasizing the critical role of data center in supporting the country’s digital transformation, the State Minister expressed Ethiopian government’s commitment to support local and foreign investors engaged in data center development. As to him, building data center brings paramount importance in accelerating the digital transformation, in creating job opportunities in the digital economy and attracting foreign direct investment (FDI). Beyond that, the development of data centers at home ensures national data security.

Yeshurun further stated that Ethiopia’s digital transformation journey shows a significant development during the past three years especially following the launching of the Digital Ethiopia 2025 Strategy. The country’s promising digital transformation is attracting local and foreign private investors to invest in data center industry in Ethiopia and Wingu Africa is among the top companies registering remarkable achievements in the sector.

According to Yeshurun the Ethiopian government provides continues support and works hand-in-hand with such projects due to its commitment to realize digital transformation and develop the role of digital economy in the country. In addition such projects are the means of job creation, knowledge and skill transfer; developing regional integration and international competitiveness, and curbing forex crunch. “Encouraging private sectors like Wing Africa to press ahead with such noble task is crucial to bridge data center gap” Yeshurun stated adding Ethiopia is creating enabling environment for such investments and setingt appropriate standards, policies, and regulations that promotes private investments.

Appreciating Wingu Africa’s achievement in securing the Tier III certification for its construction facility, the state minister stated that “this remarkable achievement is a significant milestone not only for the company but also for Ethiopia that showcases Ethiopia’s ability to attract and support investment in the latest technological advancements.” For him, Wingu Africa’s excellence in securing this certification demonstrates the high standards and professionalism that Ethiopia has embodied. “Wingu Africa has not only elevated its own capabilities, it has also positioned Ethiopia to bea hub for technology development in Africa.”

According to Yeshurun, the Tier III certification is a testament to Wingu Africa’s dedication to reliability and efficiency in their data centers. The new achievement will enhance their competitiveness in the global market and also solidifies Ethiopia as leading destination for technological investment.

For his part, Wingu Africa Chief Strategy Officer, Nicholas Lodge said that the company is putting its higher standard on achieving customers’ satisfaction. “The Tier III certification is the highest standard that data centers can achieve” Lodge said. As to him, the Tier III certification of the data center facility showcases the company’s its demonstration and commitment to service excellence. “We are now getting to give customers confidence in our facility and will ensure that customers will get the best, most reliable service possible,” he added.

With Wingu Africa’s Tier III certification by Uptime Institute, now Ethiopia for the first time has an operational Tier III certified data center, , which is the highest standard for present day data centers, according to Lodge. The Chief Strategy Officer, louds Ethiopia’s investment environment and he stated that Wingu Africa is planning to expand its data center investment in the country.

BY DARGIE KAHSAY

The Ethiopian herald April 19/2024

 

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