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The Global Emerging Markets are rapidly evolving to create robust technology environments and are now recognized as new technology centres globally. The first factor is the dynamic rate of the shift towards digital technology, the second is an increase in middle-class demand and the third one is the governmental actions that are pushing some of the African, Asian and Latin American cities to act as significant ecosystems. Now let’s look at some of the leading tech cities in these regions and why they are good for investors and innovators.
The highly developed Indian city Bangalore also known as the “Silicon Valley of the East” proves the role of Indian companies on the global level. India is one of the fastest-growing technology companies in the world boasting of an estimated GDP growth of 6.3% in 2024. Bangalore houses giants such as Infosys and Wipro; along with new-age start-ups like Paytm, Zomato, and many more.
Incentives from the government in programmes such as ‘Digital India’ have assisted in improving the digital landscape and connectivity and FDI and talent pool in aspects related to AI, fintech and software. A growing valuation and a broader market make Bangalore one of the best places for the technology sector around the world.
Nairobi is turning into the “Silicon Savannah” of Africa with an active start-up sector promoted by mobile technology and financial solutions. East African telecom giant Safaricom’s M-Pesa mobile money service has become a shining light for the future of technology-supported social change. Nairobi’s tech ecosystem is well supported by local and international investors and many tech-based firms are being established in places such as Westlands. Hard fibre optics and digital infrastructure investment in Kenya plugging Nairobi into Africa’s tech cluster; projected to reach 5.3% GDP in 2024.
Cape Town is also the technological capital of South Africa due to its high literacy and computer level where almost 90% of households have access to the internet and availability of skilled labour. More startups in artificial intelligence, gaming, and e-commerce select Cape Town for people’s high literacy in digital technologies and favourable regulation. This makes Cape Town beautifully located and conducive for work and living, diversely attracting talents of the technology world for startups and conservative tech firms.
Currently, the city is rapidly developing into a Latin America Technology City specifically known as the Silicon Valley of Medellín, Colombia. It has embraced tech-friendly policies that have seen it set up government-funded incubation centres and technical training facilities. Fintechs such as Rappick and Nubank have introduced financial technology and other digital services into the Latin American region making Medellin a perfect hub for investors and technology enthusiasts. This has created the proper conditions for a technology ecosystem in Medellín as a result of Colombia’s drive towards digitalisation and innovation-friendly regulation with a strong focus on solving local problems.
Vietnam’s economy has grown to be among the fastest in the Asia region and the leading tech city is Hanoi. The Vietnamese government has set a goal to increase the digital economy share to 30% of the national GDP by 2030 focusing on such sectors as AI, blockchain and Manufacturing technologies. Foreign investment has grown rapidly, especially from South Korea and Japan as many companies opened research and development centers in Hanoi. It has become evident that the city has become a growing technology hub given its cheap tech talent and location to other thriving Asian markets.
As part of Vision 2030, Riyadh is on its way to becoming the digital capital with projects such as the Cloud Computing Special Economic Zone. The objective of this program is to promote the settlement of international technology companies by providing them with a conducive business climate and superior Information communication technology platforms. Other tech giants such as Oracle and IBM have already ramped up their activities here and with Saudi Arabia’s commitment to AI and cloud services Riyadh could become one of the Middle East’s most important tech cities.
Southeast Asia’s pole of excellence in IT is generated from Cebu City because of the well-trained human workforce available in the city coupled with low operational costs. Featuring the digital outsourcing industry, Cebu City leverages its proximity to other Asian markets to enhance its IT industry. The education system delivers a constant supply of skilled workers conversant with technology making Cebu the less expensive option as compared to Manila, which is highly competitive.
Bucharest is indisputably the leader of Eastern Europe in terms of technology with numerous multinational companies operating in the field in the country. It provides policies like zero per cent tax on the income generated by IT professionals and attracts talents from various acclaimed universities. Having inexpensive and fast internet links and a stable and efficient education system followed by the technical and engineering fields, Bucharest is continuously receiving investors and companies demand a talented workforce at a reasonable cost.
These emerging markets offer several clear benefits on a range of factors from affordable staffing to backend government support for tech startups. Thanks to digital economies, new tech cities such as Bangalore, Nairobi and Cape Town are raising new indicators of development and progress.
According to tech forecast, by 2030 these cities will assume an even greater influence in world affairs, including the advancement of technologies and acceleration of economic advancement. It is important not only as an opportunity for investors to tap into new growing markets but also to be potential drivers of constructing new disruptive technology systems.
