African Business 2021

OVERVIEW
Satellites are a critical part of the telecommunications
network of Africa. Content and data providers typically use
satellite services where no fibre network is available. SES Africa
has a fleet of satellites that orbit four times closer to earth than
other models. Vodacom Business Nigeria is partnering with
Intelsat to offer more to its customers in the enterprise and
Internet of Things sectors.
Several African countries are participating in the Square
Kilometre Array (SKA) radio telescope project. Based in South
Africa, SKA’s Africa programme will see the creation of the AVN
(the African very-long baseline interferometry (VLBI) network).
The other participating countries are Botswana, Ghana, Kenya,
Madagascar, Mauritius, Mozambique and Zambia.
Telecoms
A figure of $10-billion is invested by the continent’s telecoms
operators, according to one of the biggest, MTN. A lack of spectrum
is the only constraint on even more being invested into a sector
with huge growth potential.
Several countries’ overall GDP growth has been boosted by
the telecommunications sector: Benin (10.6%) and Gabon (18%)
are examples and Ethiopia is expected to see a spike when parts
of its telecommunications network are privatised. GSMA expects
mobile phone and data usage to grow in Africa at a compound
rate of 4.5% to 2024.
In 2018 there were 456-million mobile phone subscribers
Tanzania has 6.4-million users of the M-Pesa mobile phone
payment system. Senegal expects to achieve a 95.3% mobile
phone penetration rate in 2021.
The high price of data in most African countries is a serious
obstacle to the development and deepening of the sector.
The number of broadband connections in Africa crossed the
400-million mark in 2018 (which was nearly 20 times more than
in 2010) but the regional average broadband penetration was
ONLINE RESOURCES
Connect Africa: www.opic.gov
Founders Factory Africa: www.foundersfactory.africa
Harambe Entrepreneur Alliance: www.harambeans.com
Research ICT Africa: www.researchictafrica.net
Smart Africa: www.smartafrica.org
only 25%. Mobile broadband
coverage in Africa is still at 70%
of the population.
Key areas for investment
are infrastructure, digital
transformation (including
digital platforms and
services), digital skills and
cybersecurity. Other key
factors are the development
of a common digital market
and aligned policies and
regulations.
Smart Africa is an initiative
backed by all the leaders of the
AU to promote and expand the
telecommunications potential
of the continent. Examples
of projects under the Smart
Africa banner are data centres
(Djibouti), innovation and
entrepreneurship programmes
(Egypt), e-payments (Ghana),
cybersecurity (Ivory Coast) and
smart energy and the blue
economy (Togo).
A Kenyan company has
found a way to offer WiFi for
free. BRCK has 700 000 active
unique visitors per month
and operates out of 2 700
sites in East Africa. It has its
own operating system, Moja,
and is robust enough to be
installed in taxis.
In reporting on the
introduction of BRCK to
South Africa, TimesLive
quoted World Wide Worx
MD Arthur Goldstuck saying,
“Between 25% and 33% of SA
smartphone owners don’t use
cellular data with their devices
because they can’t afford to.” ■
45
AFRICAN BUSINESS 2021