The Crucial Role of Network Infrastructure in Africa’s Digitalization
Africa has emerged as a hub of digital growth, yet a significant digital divide remains. According to the International Finance Corporation and Google, Africa’s internet economy could contribute an astonishing $180 billion to the continent’s GDP by 2025. In today’s TechTalk Thursday we will see how this growth, however, hinges on the development of robust network infrastructure.
Network infrastructure is not just a component of digitalization in Africa; it is its backbone. It is essential for bridging connectivity gaps, enabling mobile money services, and increasing internet penetration. Affordable, accessible, and reliable infrastructure is the foundation of an inclusive digital transformation. Poor network infrastructure contributes to increased costs for consumers, as inefficient networks require more resources to maintain and operate.
Numerous studies have shown that both broadband penetration and broadband quality are critical drivers of economic growth. For instance, a World Bank study estimated that a 10% increase in broadband penetration in low- and middle-income countries could result in a 1.38% increase in GDP. Strengthening network infrastructure is not merely an option but a necessity for addressing many of Africa’s digital challenges and unlocking its full economic potential.
The Impact of Network Infrastructure on Africa’s Digitalization Efforts
Africa’s digital transformation hinges significantly on the development and enhancement of network infrastructure across the continent. Network infrastructure serves as the foundation upon which digitalization initiatives are built, enabling connectivity, communication, and access to digital services.
Bridging Connectivity Gaps
Network infrastructure plays a pivotal role in bridging connectivity gaps between urban and rural areas. By expanding mobile networks and deploying fiber-optic cables, infrastructure providers strive to extend reliable internet access to underserved communities. This connectivity empowers individuals and businesses alike, fostering economic growth, innovation, and social development.
Network infrastructure plays an all-encompassing role in Africa and Jean-Philippe Gillet, Intelsat’s Senior Vice President of Global Sales Media, Mobility & Networks, emphasizes this saying:
Never forget that the Impact of infrastructure development extends beyond mere connectivity; Beyond this, it drives education, health services, financial inclusion, and ultimately drives the economy.
Jean-Philippe Gillet, Senior Vice President of Global Sales Media, Mobility & Networks, Intelsat
Enabling Mobile Money and Financial Inclusion
The expansion of mobile money platforms, such as M-Pesa in Kenya, highlights the importance of network infrastructure in enabling financial inclusion. Robust network infrastructure ensures secure and efficient transactions, allowing individuals to access banking services and participate in the formal economy. Mobile money has become a cornerstone of Africa’s digital economy, facilitating commerce, remittances, and access to credit for millions of people.
Overcoming Internet Affordability Barriers
Affordable and accessible internet is essential for driving digitalization efforts in Africa. However, poor network infrastructure contributes to higher data costs, limiting access to digital services for many individuals and communities. Improving network infrastructure can help reduce data prices and increase internet affordability, democratizing access to information, education, and economic opportunities.
Increasing Internet Penetration and Digital Inclusion
Reliable network infrastructure is crucial for increasing internet penetration and promoting digital inclusion. By providing reliable internet connectivity, infrastructure providers empower individuals to access online education, healthcare services, and government resources. Digital inclusion initiatives rely on robust network infrastructure to bridge the digital divide and ensure equitable access to digital technologies.
Facilitating Economic Growth and Innovation
Network infrastructure is a catalyst for economic growth and innovation in Africa. By providing the digital infrastructure necessary for businesses to thrive, network providers enable entrepreneurship, job creation, and investment opportunities.
In a conversation I had with Todd Ashton, the Vice President and Head of Ericsson South and East Africa, he touched down on this crucial impact saying:
I firmly believe that broadband is a fundamental human right. It’s enlightening to realize that every 1,000 new connections can spawn 80 new job opportunities. Moreover, the empowerment that comes with a woman having a smartphone in a family is evident through increased disposable income.
Todd Ashton, the Vice President and Head of Ericsson South and East Africa,
Additionally, reliable internet connectivity fosters innovation in sectors such as healthcare, agriculture, and e-commerce, driving productivity and competitiveness.
The Current State of Network Infrastructure in Africa
Network infrastructure is the cornerstone of internet access and digital connectivity, playing a critical role in linking urban and rural areas to bridge the connectivity gap. In Africa, the reality is stark: fewer than one-third of the population has access to broadband connectivity , and out of the 25 least-connected countries globally, 21 are in Africa. Additionally, approximately 300 million Africans reside more than 50 kilometers from a fiber or cable broadband connection. With an internet penetration rate of just 36 percent, Africa falls significantly behind the global average of 62.5 percent. These figures highlight the urgent necessity for robust network infrastructure to improve connectivity across the continent.
Internet usage in Sub-Saharan Africa has dramatically risen, increasing from a mere 1% in 2000 to roughly 40% today. Currently, about 473 million Africans are online, and this number is projected to grow by an additional 300 million by 2025, according to the African Union. Achieving and surpassing this level of internet penetration is crucial for the continent’s future growth and development.
The expansion of mobile networks, enhancement of fiber-optic links, and the construction of data centers are some of the most promising investment opportunities in Africa’s digital infrastructure. These areas are vital for increasing connectivity, data storage, and processing capabilities across the continent. According to GSMA, Africa is expected to have 615 million unique mobile subscribers by 2025, up from just 303 million in 2020. The Africa Data Centres Association has also emphasized the need for more data centers, predicting that at least 100 additional facilities will be required by 2025 to support the burgeoning digital ecosystem.
Fiber-optic networks also play a pivotal role in Africa’s digital landscape. The global fiber-optic submarine telecommunication cable systems market, valued at $23.4 billion in 2020, is expected to grow significantly, reaching $37.8 billion by 2027. Currently, only three African countries—Central African Republic, Eritrea, and South Sudan—lack a fiber-optic connection to the submarine cables encircling the continent.
Satellite technology also plays an important in Africa’s network infrastructure, especially in regions where traditional terrestrial infrastructure is difficult to deploy. Satellite provides a viable solution for providing internet access to remote and rural areas that are not easily reached by traditional means. Satellite technology is also vital for disaster response and emergency communications in Africa, where natural disasters and infrastructure challenges can disrupt traditional communication networks (such as cable cuts).
Data centers are another critical component of Africa’s network infrastructure. Africa’s data center market is expected to grow to $3 billion by 2025, driven by increasing demand for data localization due to latency issues and data sovereignty concerns.
The rapid urbanization and youthful population of Africa are strong drivers of demand for digitalization, making the expansion and enhancement of network infrastructure essential for the continent’s digital future.
Solutions and Initiatives to Improve Network Infrastructure in Africa
Africa faces several challenges in expanding its network infrastructure, including financial constraints, regulatory fragmentation, and infrastructure deficits. However, various solutions and initiatives are being pursued to overcome these obstacles and accelerate the development of robust digital infrastructure across the continent.
Government Policies and Investments
Governments play a crucial role in enhancing network infrastructure through policies and investments. Successful initiatives include national broadband plans and infrastructure development projects aimed at expanding connectivity. Additionally, public-private partnerships are instrumental in leveraging private sector expertise and resources to accelerate infrastructure deployment.
Technological Innovations
Technological advancements, such as 5G, satellite internet, and AI, hold significant promise for improving network infrastructure in Africa. These technologies offer high-speed connectivity and expanded coverage, addressing connectivity gaps in remote and underserved areas.
In Africa, there’s an additional challenge, which is the ability to reach some sites, and the logistics within Africa are more complex than in other parts of the world. Satellite technology is definitely complementary; you could use a satellite to reach a site or to start a site well before you have any fiber connectivity or microwave connectivity. So, it’s crucial in the development of Africa, there is no doubt.
Jean-Philippe Gillet, Senior Vice President of Global Sales Media, Mobility & Networks, Intelsat.
Also, with increasing technological advancements, there is a need to, there is a need to adapt the development of network infrastructure and harness these technologies’ growing trends.
Some years ago, we were discussing the arrival of 5G and the importance of the network, and then the significant focus shifted towards the cloud where the network was important again. Following that, the discussion on metaverse applications emerged and the network was again important. Presently, we are delving into artificial intelligence, once again highlighting the importance of the networks.
Roque Lozano, Senior Vice President of Network Infrastructure MEA, Nokia
International Support and Collaboration
International support and collaboration are essential for addressing Africa’s network infrastructure challenges. International organizations and foreign investments contribute resources and expertise to infrastructure development initiatives. Successful collaborations between African governments, private sector entities, and international partners yield positive outcomes, including increased investment, regulatory harmonization, and infrastructure expansion.
Promoting Digital Sovereignty and Local Production
To reduce dependency on foreign companies and enhance digital sovereignty, African countries must prioritize local production of network infrastructure components. This includes fostering partnerships between local companies and international equipment manufacturers to develop and deploy infrastructure solutions tailored to African needs. Additionally, investing in local talent and capacity building in areas such as civil engineering and cloud architecture enables African countries to build and maintain their digital infrastructure autonomously.
Addressing Regulatory Challenges and Infrastructure Deficits
Efforts to streamline regulatory frameworks and address infrastructure deficits are critical for advancing network infrastructure in Africa. Governments must work towards harmonizing regulations to facilitate cross-border connectivity and regional integration. investments in reliable electricity infrastructure are essential for sustaining digital networks and data centers, ensuring uninterrupted service delivery and economic growth.
Addressing the challenges facing network infrastructure expansion in Africa requires a multifaceted approach involving government policies, technological innovations, international collaboration, and local production initiatives. By pursuing these solutions collectively, Africa can overcome obstacles and build a resilient and inclusive digital infrastructure that drives economic development and fosters digital inclusion across the continent.
Conclusion
It is intriguing to witness the surge of technological advancements and emerging trends that hold the promise of transforming Africa. From the buzz and opportunities surrounding AI to the potential of cloud services, there is no shortage of innovation aimed at contributing to Africa’s digital transformation. However, amidst this excitement, one critical factor stands out: the indispensable need for a stable and robust network infrastructure.
Without a reliable network infrastructure in place, the implementation of these technologies and innovations remains constrained. Traditional infrastructure vulnerabilities limit the deployment and scalability of these groundbreaking technologies. Without a stable and reliable network infrastructure, these advancements may remain confined to ideas and concepts.
While the possibilities offered by these technologies are undeniably captivating, it is imperative to recognize that a stable network infrastructure serves as the foundation upon which these innovations can thrive. It is incumbent upon all stakeholders to collectively prioritize and invest in building a resilient and future-proven network infrastructure. Only by ensuring the stability and reliability of our infrastructure can we truly unlock the transformative potential of these technological advancements and pave the way for a digitally empowered Africa.