Huawei plans to grant $10 million worth of cloud credits to 100 Nigerian startups as the Chinese technology company plans to expand its cloud business and gain market share in Nigeria.
According to a report by Xalam Analytics in March 2024, Huawei has successfully acquired some significant clients in the cloud computing market, with OPay – a Chinese fintech startup – being one of its most prominent clients. Additionally, Eden Life and Feather Africa are included in the list of Huawei’s clientele.
Many Chinese cloud vendors offer free cloud credit to onboard new clients, which is similar to the offerings of cloud giants like AWS, Google Cloud and Microsoft Azure. These free credits help cloud providers retain customers after the credits have been spent due to the complexity of migration.
The demand for cloud computing services in Africa is increasing at a yearly rate of 25% to 30%, according to Xalam Analytics. The cloud market in Africa, particularly Nigeria, is experiencing a significant boost. To keep up with the growing demand, companies and operators such as AWS, Google Cloud, and Microsoft Azure are investing more in the market.
In order to gain a significant share of the market, a company needs more than simply offering free cloud credits. This is especially true in Nigeria where many startups are looking for ways to reduce the cost of their cloud services bills which are typically charged in USD. Although Huawei also charges cloud fees in USD, the company has announced plans to switch to local currency payments.
Huawei plans to onboard 10,000 global startups by 2025, with already over 3,000 onboarded, including some in Africa, according to the Chinese technology company.
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