THE MOTHERLAND

IBM's next big thing: Africa

NEW YORK (Fortune) -- Stereotypical images of Africa, as a global backwater plagued by poverty, disease, conflict and corruption, hide some encouraging realities. Democracy has taken root across the continent. The African economy is expanding briskly. So, too, are opportunities for businesses.

That's why IBM (Charts, Fortune 500) announced this week that it's expanding its stake in sub-Saharan Africa. The $91-billion-a-year technology giant will open a research and innovation center in Johannesburg for its biggest business customers. It will donate what it says is by far the most powerful supercomputer in Africa to a nonprofit computing center in Cape Town. Working with the poverty-fighting organization CARE, IBM will roll out a technology platform to reduce the costs of microfinance.

Finally, it will expand a mentoring program at 20 African universities, working with other multinationals, including Cisco (Charts, Fortune 500) and FedEx (Charts, Fortune 500). Altogether, IBM said it would increase its investment in its African operations by about $120 million over the next two years.