Why Tech Giants Are Investing in Africa’s Digital Future with New Data Highways and Increased Speeds

June 10 – Major tech companies like Google and Meta (Facebook’s parent company) are making significant investments in Africa’s digital infrastructure, aiming to bridge existing connectivity gaps and capitalize on the continent’s untapped market potential. Google’s first Cloud data center on the African continent, operational since January in Johannesburg, South Africa, marks a significant milestone in these efforts.

“The big US tech giants have recognized the existing connectivity gaps and the need for additional investment associated with this as a major business opportunity,” said Tevin Tafese, a data scientist at the German Institute of Global and Area Studies, in an interview with DW.

Prominent among these investments are major cable projects by Google and Meta. These initiatives are designed to reduce the cost of accessing their services in Africa, thereby increasing internet penetration and usage. In 2022, Google committed $1 billion to drive Africa’s digital transformation, including the deployment of undersea cables for faster internet connections. One of these projects, named Umoja (Swahili for unity), aims to be the first-ever fiber-optic cable connecting Africa directly to Australia.

The Umoja cable will anchor in Kenya and traverse Uganda, Rwanda, the Democratic Republic of Congo (DRC), Zambia, Zimbabwe, and South Africa before continuing along the Indian Ocean bed to Australia.

“It is expected that these projects will significantly improve internet access in Africa, speed up the connection, and reduce prices,” Tafese noted, highlighting the positive impacts such as increased productivity and higher employment rates.

Key players in the African internet infrastructure landscape include multinational telecom giants like MTN (South Africa), Orange S.A. (France), Vodafone Group (UK), and Bharti Airtel (India).

Leapfrogging—where traditional stages of technological development are bypassed in favor of more advanced solutions—has played a crucial role in the proliferation of mobile phone usage in Africa. Most African countries, except for South Africa and a few North African nations, have bypassed landline networks in favor of mobile networks.

“Technology has been leapfrogged,” Tafese said. “All African countries, with the exception of South Africa and a few select North African countries, have gone to cellphones and mobile networks and have not used landlines and landline internet.”

This leapfrogging is evident in the expansion of internet infrastructure, where high-capacity fiber-optic cables are being laid instead of the copper cables initially used in developed nations.

Anriette Esterhuysen, an IT expert and consultant at Johannesburg’s Association for Progressive Communications, welcomed these developments. “It’s good that these investments are being made, that capacities are being increased, and that the large technology industry is recognizing that African markets have potential,” she said.

However, Esterhuysen also pointed out the growing digital inequality despite increased digital penetration. “People who have no access, no devices, no skills, and no good networking are even more marginalized than before the digital boom,” she said.

Increased investment holds the promise of expanding digital engagement for more people. By bolstering infrastructure and accessibility, more Africans can benefit from the digital realm. But the broader socioeconomic impact remains a concern.

“It may currently make money for companies and empower the elites who are digitally enabled, but it won’t really benefit wider socioeconomic development,” Esterhuysen cautioned.

As of 2024, internet usage still varies significantly across African countries. Morocco boasts 90% usage, South Africa stands at 75%, while the Central African Republic has only 11% of its population online due to infrastructure challenges and costs. Ghana, an early adopter, connected to the web in 1992.

These investments by tech giants are a step forward in addressing connectivity issues, but ensuring that these advancements translate into widespread socioeconomic benefits remains a challenge.

Republished from DW.

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