Governments across the Middle East and Africa (MEA) spent a combined $12,8-billion on information and communication technologies (ICT) last year.
This is according to the latest findings from International Data Corporation (IDC), which expects the figure to continue rising over the coming years at a compound annual growth rate (CAGR) of 4,8%, crossing the $15-billion mark by 2023.
Digital transformation (DX) initiatives will be responsible for driving much of this growth in the MEA region, with government spending in this space forecast to increase at a CAGR of 17,6% over the 2019-2023 period.
A key area DX growth in the government sector will be artificial intelligence (AI), with IDC predicting that 60% of national governments worldwide will have deployed AI by 2023 as they strive to improve their datacentre management, service and information accuracy, and constituent interactions.
To this end, government spending on AI in the MEA region is forecast to grow at a CAGR of 22,2% over the coming years.
Governments throughout the region are also increasingly looking incorporate blockchain within their DX initiatives, with the technology becoming a powerful government tool for reducing fraud, boosting security, and establish new relationships with citizens.
And, while MEA governments only directed $21-million towards blockchain last year, IDC expects that figure to top $105-million by 2023, representing a CAGR of 49,2%.
“Governments across the region are under mounting pressure to become both more efficient and more effective,” says Jyoti Lalchandani, IDC’s group vice-president and regional MD for the Middle East, Turkey, and Africa. “However, this is proving to be a troublesome task as many government organizations are simply not prepared for digital redesign.
“Whether it’s finding ways to integrate 5G, AI, and blockchain or protect against intrusions on digital trust, government agencies have a whole new set of IT skills to learn.”