Facebook's Africa plan is to boost user base first

Significance

The platform is currently available in eight sub-Saharan African (SSA) countries. Facebook's decision, announced in late June, to set up its first African regional headquarters in Johannesburg underlines its long-term growth ambitions on the continent.

Impacts

• Facebook joins multiple other tech giants with Africa expansion plans, including Google, IBM, Microsoft and Phillips.
• Some of these firms are partnering with local technology 'hubs', particularly in Nairobi, designed to fuel innovation.
• However, the business model for these hubs is ill-defined; much activity remains centred on donor grants over service provision.
• Despite weak evidence for effective local innovation, public and private investment flows will likely remain strong.