African Firms Build In-House Software Amid Tech Shift

African organizations are increasingly developing software and technology in-house rather than relying on external suppliers, even as artificial intelligence dominates upcoming investment plans. According to submissions for the 2026 CIO100 Awards spanning 10 countries, 38.2 percent of submitted projects were built without a vendor.

Internal Software Development Rises Across African Organizations

Nearly 1,300 organizations submitted projects for the 2026 CIO100 Awards, revealing a distinct shift toward internal technical teams. The data shows that 38.2 percent of entered projects were developed without an external vendor. Submissions came from organizations operating across 10 nations: Kenya, Nigeria, Ethiopia, Tanzania, South Africa, Rwanda, Uganda, Malawi, Zimbabwe, and the United Kingdom.

Building applications internally allows companies to tailor digital tools to precise operational demands while retaining technical talent locally. Deloitte consulting managers noted that this internal focus creates practical employment opportunities for skilled graduates. Organizations are investing in their own staff to shorten application turnaround times and reduce overall deployment complexity.

Organizations are investing internally to develop their teams so that they are able to develop applications that suit them, have a quicker turnaround, save up on their costs and at the same time be able to develop desired impacts with less complexity that is usually the norm when people go outwards in terms of investments.

Arnold Ng’ang’a, Senior Manager for Consulting Services, Enterprise Technology and Platforms, at Deloitte

This localized development wave is expected to drive specific job creation in technical training, cybersecurity, data annotation, and product management across the region, according to analysis conducted by Deloitte.

Recently, industry figures including Carol Odero, Head of Content – Africa at CIO Africa, Deborah Mutungi, Group IT Manager at Sarova Hotels, Gilbert Mutai, CIO at Car and General, and Mumbi Ndung’u, Executive Director at Power Learn Project, convened for a panel discussion at the CIO100 Partners Breakfast held at the Pullman Nairobi, Upperhill on October 15, 2026.

Artificial Intelligence Investment Outpaces Actual Deployment

While artificial intelligence stands as the primary technology investment priority for regional leaders, actual project integration lags behind stated ambitions. A total of 84.8 percent of submissions identify AI as an investment priority over the next 12 to 24 months. However, only 61.8 percent of the projects entered into the awards actually incorporated AI, and just 25.7 percent utilized generative AI tools capable of creating text or images.

African Firms Build In-House Software Amid Tech Shift
Photo: Capital FM Africa

That adoption figure does represent growth, rising from 54.8 percent in the previous year’s submissions. Industry leaders point out that businesses are still navigating the operational hurdles of data governance, practical implementation, and internal skills.

AI is moving rapidly up the agenda for African business and technology leaders, but the real test is how effectively organisations translate that interest into results.

Harry Hare, Chairman, CIO Africa by dx5

Smaller Budgets Deliver Stronger Returns in Digital Transformation

The awards data challenges the assumption that meaningful digital transformation demands massive capital expenditure. Projects with budgets under $10,000 (approximately KSh 1.3 million) accounted for 27.2 percent of submissions, marking a significant increase from 12.7 percent in 2023.

Planning the Budget | Budget Breakdown | Building a House in South Africa

These lower-cost initiatives achieved a median return of 3.6 times their initial investment. By comparison, programs with the largest budgets yielded roughly twice their financial outlay.

Cybersecurity Maturity and Incident Response Readiness Gaps

Despite heavy investment in connected systems, cloud services, and AI tools, organizations report significant vulnerabilities in cybersecurity preparation. Although 82.5 percent of participating organizations rated their internal security maturity in the highest possible category, only 38.6 percent stated they had tested an incident-response plan.

Experts emphasize that this gap leaves systems exposed to growing threats, including automated, AI-driven cyberattacks. Formal incident response protocols dictate how an enterprise manages a breach, secures core systems, and restores disrupted services.

Project winners and regional executives will gather to discuss these operational challenges at the upcoming symposium scheduled for November 25 to 27 at Diamonds Leisure Beach & Golf Resort in Diani, Kenya.

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Sophie Lin - Technology Editor

Sophie is a tech innovator and acclaimed tech writer recognized by the Online News Association. She translates the fast-paced world of technology, AI, and digital trends into compelling stories for readers of all backgrounds.

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