Cloud-based software firm Snowflake (SNOW) has ramped up its global expansion with a new AI offering in South Africa.
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Snowflake, which recently reported strong Q2 results, said its AI Data Cloud on Amazon (AMZN) Web Services Africa would enable users to “unlock deeper data insights powered by AI to drive business innovation.”
Data Protection
It will also align with The Protection of Personal Information Act (POPIA), which, similar to Europe’s GDPR, governs the processing of personal information in South Africa and places stringent requirements on how data is handled, including its transfer across borders.
Additionally, South Africa’s National Policy on Data and Cloud explicitly sets out requirements for government and public-sector data to be stored within the country’s borders.
“Snowflake’s expansion in South Africa is a pivotal step in our commitment to supporting and empowering local organizations with faster, cost-efficient, and secure data solutions that enable customers to meet local data regulations, all without compromising on performance or innovation,” said Luan Reineck, Snowflake’s Country Manager, South Africa.
Existing Snowflake customers in South Africa include mobile game and digital content publisher Carry1st, telecoms group BluNova, and financial services group Mukuru.
“As we scale our operations at Carry1st, and work with our team across 20 different countries, it’s critical that we have the right technology to make data-driven decisions about the business and our customers,” said Ziyaad Kumandan, Lead Data Engineer at Carry1st. “We have been able to reduce infrastructure costs by up to 45%, improve data refresh rates by over 300%, and enable faster insights and enhanced customer interactions.”
African AI
According to Forbes Africa, South Africa, whose AI market size is reportedly around $1.2 billion, is one of the countries at the forefront of digitalization in Sub-Saharan Africa. Its 2030 AI agenda includes developing over 300 AI start-ups and 5,000 AI experts.
Sub-Saharan Africa’s AI market is predicted to grow substantially, from $4.51 billion in 2025 to $16.53 billion in 2030, representing a compound annual growth rate (CAGR) of 27.42%, according to Statista. This will be driven by youthful populations and a growth in the number of entrepreneurs.
As seen above, Snowflake already has a growing presence in Africa and appears in a good position to further grow its revenues from the continent.
Is SNOW a Good Stock to Buy Now?
On TipRanks, SNOW has a Strong Buy consensus based on 33 Buy and 3 Hold ratings. Its highest price target is $285. SNOW stock’s consensus price target is $264.56, implying a 10.85% upside.
