Access to high-speed internet connectivity is now indispensable in Africa, where digital transformation is accelerating. However, the high cost of internet remains a significant barrier for a population eager to take advantage of new technologies.
The Malagasy government has rescinded its recent decision to raise the price of a gigabyte of data to $0.95, reversing a policy introduced last month. This U-turn was announced by the Ministry of Digital Development, Posts, and Telecommunications (MNDPT) in a statement following a review of internet service providers' pricing practices in the country.
"The government found that the artificially high prices maintained by telecommunications operators did not reflect the commitments made during negotiations. As a result, this measure aims to restore fair competition and reduce costs for end users," said the MNDPT statement.
Initially, the government had decided to raise the price of a gigabyte from $0.45 to $0.95, justifying this measure by arguing that it would promote a more equitable distribution of internet access across the country. However, this decision made internet access increasingly difficult for many Malagasy citizens, further widening the existing digital divide.
In response to their customers' needs, several providers did not implement the new rates. According to data from Kepios, a consultancy specializing in digital usage studies, Madagascar had 3.8 million social media users as of January 2024. Following the price hike, many internet users were forced to cut back on their internet-related expenses or visit cybercafés, thus turning what was once a widely accessible service into a luxury product in Madagascar.
The suspension of this decision is expected to pave the way for new discussions between the government and the country's mobile operators. A potential reduction in prices should help liberalize the market and allow various users to reconnect with the internet, which is a crucial tool for students, traders, and local startup founders.
Samira Njoya
