Connectivity for Africa?

by Jason Benedict ⋅ September 2, 2008

Finally, we are beginning to see a decrease in broadband prices for parts of Africa, and it looks like we can be hopeful about greater and cheaper connectivity in the future. Retail rates for 512kbps are now down in the $90 - $200 USD range[1] in certain countries, and while this is still outrageously expensive, it marks progress. Furthermore, there are currently at least 10 major fiber projects going on in Africa, and several of these are scheduled for completion in the next couple of years. What this means is that Africa will finally be connected to the rest of the world with affordable internet. In fact some are even projecting a glut of bandwidth[2].

The story of broadband in Africa is basically one of low connectivity, high prices and monopoly. Until now the only options for connectivity have been expensive satellite, and the SAT3/WASC/SAFE monopoly (SAT3/SAFE for short). Essentially, SAT3 connects Portugal to West Africa and on to South Africa where it connects to SAFE and then Asia. Some of the current reductions in price are due to a loosening of the SAT3 monopoly over the last year. SAT3 and SAFE have a capacity of 120Gbps and 130Gbps respectively. When other cables come online Africa’s connectivity will be measured not in gigabits but terabits.

Some Projects to Watch:

SEACOM – To link RSA, Madagascar, Mozambique, Kenya, Tanzania, India and Europe. Expected to be online in 2009.
GLO 1 – To link Nigeria and other West African Investors to Portugal. Expected to be online the by the end of 2009.
EASSy – To link South Africa, Madagascar, Mozambique, Tanzania, Kenya, Somalia, Djibouti and the Sudan. Projected to be online in 2010.

The kind of connectivity we are describing here is essential to economic development on the continent. It appears that the Sub-Saharan regions with the most connectivity will be West Africa, South Africa and East Africa. This should open up a host of economic and educational opportunities. Sectors to watch will be ICT, Business Process Outsourcing, professional and technical services, medicine, finance, education and transportation.

The Kingdom impact of greater connectivity for Africa is largely dependent on our vision and the initiative that we take now. The benefits of economic development seem obvious. It seems like there will be BAM opportunities in the sectors mentioned. Additionally, this kind of progress will move people around, and these people movements will create opportunities for the Gospel. There could be dramatic shifts in personnel location and training dynamics with all kinds of strategy implications for each.

Jason is a strategist with the Regent Center for Entrepreneurship. He is also a contributing editor with Momentum Magazine (where this is also published) and serves as a missionary with Calvary International. He has written a book on business as mission titled Eden Inc.


[1] Africa Broadband Price Cuts - Retrieved: 09/02/08

[2] Six Submarine Cable Projects Not Watertight – Retrieved: 09/02/08