In today’s digitally driven world, meaningful connectivity is the key that unlocks a world of opportunities for individuals. It’s the difference between having access to education, banking, and healthcare – or none of them. It also has a profound impact on the entire society as it can determine the success and impact of digitalisation programmes, shaping the future of our communities.
But here’s the harsh reality: many current and upcoming innovations will remain distant dreams for the vast majority of people in countries where connectivity is limited or non-existent.
With a growing tech market that has been hailed as a game-changer for the economy, Africa is a continent on the rise. According to a report by Google and the International Finance Corporation (IFC), Africa’s digital economy has the potential to contribute nearly $180 billion, a 5.2 percent of the continent’s GDP, by 2025. It’s a staggering figure that speaks volumes about the untapped potential waiting to be unleashed.
Moreover, Africa’s technology ecosystem is teeming with life, with capital investments hitting all-time highs. In 2022 alone, venture capital deals on the continent experienced a remarkable 8 percent surge, surpassing the previous year’s record and amassing a total of $6.5 billion, according to renowned global investment platform, Partech. These numbers tell a riveting tale of growing confidence and mounting interest in Africa’s vibrant and promising tech sector.
Despite this remarkable progress, a colossal challenge looms large – the issue of connectivity.
Africa’s connectivity challenges
The continent’s connectivity challenges are a major hurdle on the path to technological advancement. The lack of reliable and affordable internet access has served as a major bottleneck for the continent’s tech industry. It’s not just a problem limited to remote rural areas. Even in the bustling urban centres, internet access is often unreliable, frustratingly slow, and prohibitively expensive.
Less than one-third of the African population has the privilege of accessing broadband connectivity. Shockingly, 21 out of the 25 countries with the least connectivity in the world find their home within the borders of Africa. With a poor internet penetration rate of a mere 36 percent, Africa lags significantly behind the global average of 62.5 percent.
Moreover, the region’s vibrant and burgeoning young population is eagerly seeking to harness the vast potential of the digital economy. They yearn to tap into the immense it offers, yet their ambitions are stifled by the persistent challenges of sluggish and costly internet access. As the spotlight intensifies on Africa’s tech industry, it has become imperative to address and resolve this pressing issue.
However, things are looking up. Presently, 473 million Africans have managed to establish an online presence, and by 2025, an additional 300 million are projected to join them. This anticipated surge in internet adoption holds immense significance, as it is the key to unlocking Africa’s future growth and development.
To bridge the connectivity gap, significant investment is required. The World Bank estimates that achieving universal and high-quality internet access throughout Africa demands a staggering $100 billion investment. A substantial portion of this amount, precisely 80 percent should be allocated to core infrastructure development, including the deployment of 250,000 new 4G base stations, laying at least 250,000 kilometers of fibre optic cables, and transitioning to 5G technology. These investments will pave the way for the dramatic amplification of data centres’ demand.
Then there’s the energy crisis. In many parts of Africa, especially in rural and remote areas, a shortage of reliable electricity hampers the establishment and maintenance of essential communication infrastructure. Without a stable and accessible source of power, it becomes challenging to fuel and sustain the necessary infrastructure for connectivity.
Building and enhancing the connectivity infrastructure
So, what can be done to tackle these challenges head-on and pave the way for enhanced connectivity across Africa? Let’s explore some key investment trends that hold the potential to transform Africa’s connectivity infrastructure.
First and foremost, mobile networks are witnessing rapid expansion across the continent. The transition from 2G to 3G or 4G networks, along with network sharing initiatives, is accelerating network coverage. While the adoption of 5G in Africa is still limited, with only a handful of markets having established commercial networks, mobile devices are expected to remain the primary method of internet access. By improving and optimising 4G and 5G networks, Africa can reap numerous benefits, such as increased bandwidth, reduced latency, improved spectrum efficiency, and the introduction of innovative Internet of Things (IoT) products and services.
Another crucial aspect of enhancing connectivity infrastructure is the deployment of fibre-optic cables. While Africa is predominantly covered by submarine cables, a few landlocked countries still face limited fibre-optic network penetration. Presently, sub-Saharan Africa has below two percent household penetration of fibre-based broadband, with most of the concentration in capital cities. However, notable projects are underway to address this issue. The 2Africa cable system, scheduled for completion in 2024, will encircle the continent with 21 landings in 16 nations, effectively doubling Africa’s internet capacity. Additionally, the Equiano subsea cable project, connecting the Atlantic coastline, is set to complete its first phase in 2022. These initiatives will significantly bolster Africa’s connectivity backbone.
Data centres also play a crucial role in the connectivity landscape. Concerns over latency and data sovereignty are driving the trend of localising data centres within Africa. Currently, the continent contributes a mere one percent of the global data centre capacity, with the majority concentrated in South Africa. However, major players like Oracle, Amazon Web Services, and Google have started establishing cloud regions in Africa, recognising its potential. To achieve a similar level of density as South Africa throughout the rest of the continent, an estimated 700 new data centres with a capacity of 1,000 MW would be required. The African Data Centres Association has shed light on the immense need for expansion in this area.
“Technology and innovation can play a major role in bridging the connectivity gap in Africa,” says Todd Ashton, Vice President and Head of South and East Africa, Ericsson.
“For example, wireless technologies like 5G can enable faster and more reliable connectivity in areas where the business case for fibre would not be sustainable. Additionally, new technologies like satellite internet can bring connectivity to remote areas that are difficult to reach with traditional infrastructure.
“Beyond infrastructure, innovation can also help address digital literacy challenges and make connectivity more affordable by developing new business models and payment systems that are accessible to more people.”
Connecting the unconnected
It is important to note that the issue of connectivity in Africa is not just a technological challenge. It is also a social, political, and economic challenge. Addressing this issue will require collaboration between governments, civil society, and the private sector to create an enabling environment for the tech industry to thrive.
“Governments, regulators, and private sector actors can work together to accelerate progress on connectivity in Africa by collaborating on policy development, infrastructure investment, and educational initiatives,” says Ashton.
He adds, “Additionally, governments and private sector actors can work together to develop educational initiatives that help people develop the skills necessary to use digital technologies effectively. By working together, governments, regulators, and private sector actors can create a more sustainable and inclusive approach to expanding connectivity in Africa.”
As Africa is making steady progress in bridging the coverage gap, it still hasn’t closed the usage gap. The number of Africans who live within the footprint of a mobile broadband network are still not using internet services.
“In the Sub-Saharan Africa market, there is a significant usage gap, which currently has the highest percentage in the world. This gap can primarily be attributed to high handset costs. Handset costs continue to pose a major obstacle for many Africans in accessing ICT, mobile services, and developing digital literacy,” says Jawad Jalal Abbassi, Head of Middle East & North Africa, GSMA.
He added, “However, the continent is making progress in the right direction with increased competition and the implementation of improved policies related to spectrum allocation, among other factors.”
The usage gap exacerbates the digital divide in the region, impeding progress towards digital inclusion. This serves as a stark reminder of the enormous task that still lies ahead in bringing the majority of African populations into the digital economy.
In the connectivity game, achieving higher capacity at lower costs is the ultimate measure of success. Attaining this goal is no easy feat. However, while this may seem daunting, governments and technology players have the unique opportunity to shape the connectivity landscape in Africa to match the levels seen in developed economies.
Over time, with the right mindset, strategies, technologies and policies in place, Africa is set to reap the fruits of a connected, digital future.
