With the ongoing digital transformation, investments are pouring into Africa to guarantee quality internet connection for populations. Over the past three years, new telecoms infrastructures have been commissioned for this purpose.

Demand for high-speed Internet services in Africa has been rising since 2020. This need is currently having a direct impact on the continent's transmission capacity, which has recorded the fastest compound annual growth rate (CAGR) in the world over the past three years, indicates the Broadband Commission of the International Telecommunication Union (ITU), in its report "The State of Broadband 2023 Digital Connectivity: A Transformative Opportunity."

Between 2020 and 2023, a dozen new submarine cable systems were commissioned on the continent, boosting total available bandwidth by more than 70 terabits. In addition to cables such as the South Atlantic Inter Link, Orval, METISS, DARE1, EllaLink, Maroc Telecom West Africa, Equiano, 2Africa, etc., thousands of kilometers of terrestrial fiber optic cable have also been deployed by suppliers such as Liquid Telecom. Added to this are the data capacities of national and international satellite communication systems such as Eutelsat, YahClick, Intelsat, Starlink, OneWeb, etc.

Source: Broadband Commission

In its June 2020 Mobility Report, tech company Ericsson reported that in sub-Saharan Africa, home to more than half the African population, monthly internet trafic per smartphone was 1.9 gigabytes in 2019. By June 2022, this monthly traffic had climbed to 4.7 gigabytes. Ericsson estimates that this growth in demand volume will reach 19 GB by 2028, for individual consumers alone. However, the rapid annual growth in high-speed transmission capacity does not always benefit all African populations, even though 83% of them are covered by a telecoms network (49% by 4G and almost 30% by 3G), according to the ITU. The Internet access rate is only 33% (87% in Europe, 81% in the USA, 61% in Asia-Pacific), despite the significant potential for high-speed connectivity. A number of obstacles are still holding back the full exploitation of the various Internet investments made by governments and service providers. These include the high cost of entry-level broadband services. They are still well above the threshold set by the Broadband Commission: less than 2% of monthly gross national income per capita.

Source: UIT

The cost of internet-enabled phones is another obstacle. In its study "To Luxury To Lifeline. Reducing the cost of mobile devices to reach universal internet access" covering 70 countries worldwide, the Alliance for Affordable Internet (A4AI) drew up a heat map revealing the markets where the price of a smartphone is most affordable. Access to computers is also expensive. Only 1% of the African population is connected to fixed broadband at home (35% in Europe, 23% in the USA, 17% in Asia-Pacific), out of the nearly 2.5 million km of fiber optic cable already deployed on the continent.

Source: Alliance for Affordable Internet

According to the ITU, the Internet is currently an undisputable catalyst for economic and social development. The UN agency states that improving mobile and fixed broadband penetration rates by 10% would add 2.5% and 1.5 respectively to gross domestic products (GDP).

Muriel Edjo

After enabling Nigerian startups to raise capital on the exchange, the NGX is going a step further with the federal government’s approval.  

Nigerian authorities want local start-ups to be listed on the Nigerian Exchange Limited (NGX), the country's main stock exchange. This was stated by Bosun Tijani, Nigeria's Minister of Communications, Innovation and Digital Economy, at a technology event entitled "Invest in Africa's Future - Let's talk about exits" held last week in New York, on the sidelines of the United Nations General Assembly.

The aim is to stimulate the listing of startups on the NGX Technology Board index. "We want to prioritize the ability of our technology companies to export products and we are targeting Africa first and then eventually start selling to the rest of the world," Minister Tijani explained.

This decision is in line with the country’s plan to diversify its economy, therefore reducing its high dependence on oil revenues by capitalizing on its very buoyant and dynamic tech sector. According to Partech Africa, Nigerian startups captured $1.2 billion of the $6.5 billion raised in Africa in 2022. In 2021, they captured $1.8 billion of the $6 billion, against $307 million of the $1.43 billion in 2020 and $747 million of the $2 billion in 2019.

Apart from being the country whose startups attract the most funding in Africa, Nigeria also hosts four of the eight unicorns on the continent. Those unicorns are namely Chipper Cash, Flutterwave, Interswitch, and Opay. Flutterwave co-founder Olugbenga Agboola, who took part in the event in New York, explained that his company would bank on the project and capitalize on the opportunities offered to evolve and bring more value to its customers and investors.

"We will continue to do a lot of work that makes us able to attract local capital and the day tech start-ups come to the exchange, we are confident that there would be a very good audience of investors that would want to own a bit of their shares. This is what we at NGX are doing by removing all barriers for that to happen," says Temi Popoola, Chief Executive Officer of NGX.

Adoni Conrad Quenum

In 2021, Starlink began negotiations to get the necessary authorizations to provide its satellite internet services in certain African countries. Pursuing the same objective, the company is partnering with African companies with converging ambitions.

Pan-African broadband connectivity provider Paratus announced on Friday, September 22 that it had signed an agreement to distribute Starlink's broadband Internet services on the African continent.

Under the terms of the agreement, Paratus will supply Starlink to customers across the continent as and when licenses are granted to Starlink in Africa. For the time being, Starlink will be available from Paratus in Mozambique, Kenya, Rwanda, and Nigeria, before being extended to other countries.

"This agreement aligns perfectly with our vision of transforming Africa through exceptional digital infrastructure and customer service.  It means we can offer industry sectors – such as land and offshore energy, mining, hospitality, education, healthcare, agriculture, and more – the reliable and constant connectivity they need to flourish, no matter how remote they are," said Martin Cox, Paratus Group Chief Commercial Officer.

For Starlink, the new agreement is part of its expansion strategy to bring satellite broadband Internet services to every corner of the globe, including remote and landlocked areas hardly accessible for mobile operators' terrestrial networks.

In this way, the partnership between Paratus and Starlink should help to strengthen competition in the African Internet market and promote digital inclusion. According to a 2022 report by the International Telecommunications Union (ITU), in 2021, 33% of Africans used the Internet, compared with 63% for the global average. These figures have risen sharply in 2022 with the arrival of new telecom operators and the construction of new infrastructures in several countries.

Samira Njoya

To fulfill its digital transformation ambitions, the Chadian government is multiplying initiatives with key partners. 

The Secretary General of the Ministry of Telecommunications and Digital Economy of Chad, Mahamat Saleh Ibrahim, and the Vice President and General Manager of Huawei CEMAC zone, Léo Lingyu Kong, signed a memorandum of understanding on Saturday, September 23 in Shanghai, on the sidelines of Huawei Connect 2023.

Under the terms of the agreement, Huawei is committed to becoming a key partner of the Chadian government and supporting it in its mission to build a favorable ecosystem for the emergence of digital talents in Chad.

"In the era of the digital economy, digital talent is key, and Huawei is committed to transferring and sharing ICT knowledge and skills, continuously improving digital competencies, and supporting the development of local digital economies and emerging industries," the ministry said in a note posted on social networks.

This initiative is part of the National ICT Modernization Project, financed by a concessional loan granted by the Chinese government to the Chadian government. In its first phase, which is still underway, the government benefited from the support of Huawei and other partners such as telecom operators Moov and Airtel.

Launched in 2020, the project is divided into several components, namely the construction of a national data center, the building of a 1,200 km fiber optic network crossing the country from south to east, a 50 km fiber optic loop around the city of N'Djamena, the modernization of the Sotel Tchad group's network through the construction of 200 2G/3G/4G sites, and the extension of subscriber capacity from 300,000 to 1,000,000.

All these initiatives underway in the country were reviewed in Shanghai by the Chadian delegation and Huawei vice-president Richard Jin. The second phase of the project was also discussed.

Samira Njoya