The technology infrastructure revolution: Africa’s opportunities for the next frontier
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The technological landscape in Africa is going through significant transformation as the continent positions itself to harness new and emerging technologies, such as 5G Technology, Internet of Things (IOT) and Machine Learning, Artificial Intelligence (AI), state of the art Data Centres and Satellite Connectivity.
Significant capital-intensive infrastructure is critical to laying a solid foundation for the progress and expansion of technological capabilities on the Continent in order to serve current and future demands. The broadband consumption growth rate in Africa over the next few years is anticipated to be as high as 6% in comparison with the 1.4% global growth rate expected in other developed markets [i]. In order to meet these needs, the Continent is poised to benefit from unique opportunities through the upgrade and expansion of existing infrastructure and by, embracing new technologies. Satellite Technology Connectivity using Low Earth Orbit (LEO) satellites, as an example, promises to deliver low-latency, high-speed connectivity ensuring seamless data transmission due to their positioning at lower altitudes in comparison with traditional satellites.
Whilst these enhancements to the technological landscape are indicative of a paradigm shift, creating new opportunities for social and economic transformation, an important question is whether there is a sufficient positive investment climate giving stakeholders sustainable and enforceable returns and securing Africa’s position as an important destination in the global technology race.
The ability to meet the demand for sophisticated, scalable infrastructure is at risk of lagging behind the growing digital footprint of a mainly young demographic. Despite mobile data usage in Africa increasing by approximately 40% annually, the Continent accounts for less than 1% of global Data Centre capacity.[ii] This presents a unique opportunity for the Continent to enhance investment opportunities through enabling Regulations and Policies harmonized at continental, regional and national levels.
Bridging the Connectivity Gap
Fibre Infrastructure
The availability of high-speed connectivity for voice and data on the Continent is heavily reliant on fibre optic infrastructure for fast and reliable connections. As at 2008, there were reportedly only three Fibre-optic Submarine Cables connecting the African Continent to the Internet[iii]. Fast-forward a decade and a half later and the current picture looks very different today with approximately over 30 existing submarine cables connecting the Continent on record[iv] some of which are at different stages of construction. The landscape keeps changing with more fibre set to come online. For example, META recently announced its intention to construct a 50,000km undersea cable, ‘Project Waterworth” which would be the world’s longest submarine cable when completed and will connect 5 continents including Africa[v]. The continued expansion of submarine cable infrastructure in Africa will enhance the Continent's global connectivity and digital integration.
Terrestrial fibre is required for transmission along land-based routes and is a critical infrastructure for Africa’s landlocked countries. This infrastructure provides inland connection of Submarine Cables from coastal regions, creating a national backbone for local populations through connectivity to major cities and rural areas. Terrestrial fibre, however, remains quite expensive to deploy and operate. According to the Africa Telecom Transmission Map 2024, the Continent has a reported estimate of 1.3million kilometers of operational terrestrial fibre optic transmission networks, which is an increase from a little over 1 million kilometers recorded in 2019 and approximately 500,000 kilometers in 2014. A lot more will, however, still be required to support the growth rates anticipated. Institutions like the World Bank have been involved in projects aimed at supporting terrestrial fibre expansion and accessibility on the Continent and have partnered with various African Governments to progress this. This is in addition to significant investment by the major local and international operators in private and open access fibre infrastructure across the Continent. More recently, the Nigeria Telecoms Ministry has announced a project to expand broadband infrastructure in Nigeria which will involve the deployment of a 90,000km Fibre-optic network under a Public Private Partnership. These developments highlight the rapid growth and critical role of Terrestrial fibre infrastructure in enhancing digital connectivity throughout Africa.
Satellite Technology
This is amongst the most promising solutions to Africa's connectivity challenges. With large parts of the Continent still lacking reliable broadband access—especially in rural and remote areas—satellites offer the potential to provide high-speed internet where traditional infrastructure is either impractical or too expensive to deploy. As satellite constellations are launched and expanded, they will revolutionize access to the internet, enabling millions of underserved people access to connectivity[vi].
Companies like Eutelsat, SpaceX and Amazon are making strides to bring satellite-based internet to Africa. These initiatives aim to expand broadband access by deploying LEO and Medium Earth Orbit (MEO) satellites that promise faster speeds, reduced latency, and greater coverage to areas where connectivity is unreliable or unavailable. The cost of deploying LEO satellites is far cheaper than Geostationary satellites and is decreasing due to advancements in satellite technology and launch services. The International Telecommunication Union (ITU) highlights that modern small satellites can be developed at a fraction of the time and cost compared to traditional satellites[vii] thereby making the technology even more accessible.
Satellite technology has the potential to provide a more resilient communication network whether this is based on direct to device connectivity or as a backhaul to existing telecommunications networks. It is most attractive given its potential to cover gaps especially in challenging circumstances where traditional infrastructure could struggle such as situations of disruptions through vandalism, natural disasters, political instability or navigating difficult terrains where accessibility to building infrastructure and carrying out repairs and maintenance are constrained. Satellite service providers are increasingly collaborating with in-country telecom operators to provide services such as cellular back-haul and enterprise solutions. Satellite infrastructure can complement fibre networks by providing a reliable form of redundancy in case of fibre cuts, outages, or disruptions. This enhances network resilience and disaster recovery capabilities.
Data Centres
As the global demand for cloud computing, AI, streaming, and data processing services continues to grow, the global Data Centre industry is experiencing an explosion in interest and investment and Africa cannot be left out. The UN has reported that in the next half decade AI will likely contribute over $1trillion to the regional economy. In the past decade, the continent has witnessed significant advancements in the development of Data Centres, driven by both local and international players. According to the World Data Centre Map[viii], there are currently 179 Data Centres listed, from 33 countries in Africa. With more than 50% of the available Data Centres located in only 4 of those countries, (South Africa, Nigeria, Kenya and Mauritius), it is clear that the Data Center penetration is still very low.
Data Centers are important for hosting websites and cloud storage and will be a critical backbone for Africa’s digital economy. In Africa, the rise of Data Centres is particularly important in supporting the growing FinTech, e-commerce, and telecoms industries, which require secure, scalable, and high-performance computing resources.
In addition to supporting existing services, the growth of Data Centers opens up opportunities for innovation in AI, IoT and Machine Learning. The promise of AI is vast, but realizing its potential in Africa requires significant infrastructure investment. Large Learning Models used by AI systems require vast amounts of data and computing power. Localized Data Centers reduce latency, making real-time AI applications more effective. Despite the African Continental Free Trade Area’s (AFCTA) recommendations on data liberalization under Articles 20 and 22 of its protocol on digital trade which encourages cross border data transfers and prohibits States from requiring data localization as a condition for digital trade, (with exceptions for legitimate public policy objectives or essential security interests), data sovereignty remains an area of important restriction for most Regulators on the Continent. Data Centres situated within the Continent might offer the needed compliance by hosting data locally and regionally.
5G Infrastructure
This encompasses the physical and digital systems that enable 5G wireless communication, including radio networks, core networks, fiber-optic backhaul, edge computing nodes, and cloud-native network functions. These elements work together to enable high speed, ultra-low latency, and high device density that are needed for advanced applications like AI and IoT.
5G is predicted to have a 60 percent annual growth rate in Africa, from 11 million subscriptions in 2023 to 180 million by the end of 2029[ix]. By 2030, GSMA predicts 5G to reach approximately 226 million subscriptions contributing up to $10 billion to the regional GDP[x].
Improved connectivity over the years has contributed positively to the transformation of industries on the Continent. For example, proliferation of mobile banking in the financial services sector and sustained e-commerce growth. 5G is also set to expand this further through AI enablement which will have beneficial uses such as improved and faster diagnostics in the healthcare sector, improved fraud detection and implementation of credit scoring systems using existing data in the financial services sector and vehicle tracking and route optimisation in the transport and logistics sector.
Key Opportunities to Unlock Growth Potential
Digital technologies are reshaping productivity in various sectors including agriculture, finance, manufacturing, trade, and public services. The digital economy across the markets on the Continent is expected to generate millions of jobs especially in fintech, digital services, and tech enabled Micro, Small, and Medium Enterprises. Unlocking the full potential of Africa’s digital economy requires a supportive regulatory and policy framework that encourages investment, fosters innovation, and ensures sustainable development. By addressing regulatory challenges, enhancing public-private partnerships, enhancing existing and supportive infrastructure and upskilling its talent pool Africa can create an enabling environment for infrastructure growth.
Regulatory Policies and Licensing Frameworks
Investment in infrastructure is generally capital intensive and requires a long-term sustainable investor environment from a policy and licensing perspective. The pivot to the opportunity in infrastructure growth lies in developing, shaping and implementing supportive regulatory frameworks that address critical issues affecting stakeholders. Whilst there are some well-defined, predictable and enforceable licensing frameworks for the various infrastructure types in several countries on the Continent, others have an opportunity to develop their existing licensing framework to cater for new technology infrastructure types. The transparency in infrastructure governance such as having a clear path to licensing, a time bound licensing process, determinable license fees and determinable royalties post licensing would create sustainable investor confidence. Licensing frameworks should provide for the outlay on recurring operational levies, costs, fees and on payments for permits required to build the infrastructure such as Right of Way and Wayleave payments.
There is a tapestry of complex and varying Regulations that pose particular impediments to building and operating cross border networks on the Continent. Some countries require separate licensing for local networks and for cross border terrestrial fibre networks for international transit thereby requiring operators to apply for multiple licenses and leading to greater operating costs. In some other instances, regulations have not been clear on transit capacity not consumed locally thereby creating licensing uncertainties. One of the key regulatory pivots would be to have a more harmonized approach creating a conducive environment for competitive participation
In relation to Satellite connectivity, regulations require local Mobile Network Operators to acquire spectrum to be able to connect to specific Satellite networks. This is in addition to the landing rights and other licenses already acquired by the Satellite Operators. The frameworks therefore need to consider the position of domestic operators, satellite operators and key stakeholders to enhance the smooth adoption of progressive technologies that benefit their country. Regulations should provide for collaborative models that allow multiple interested stakeholders coexist in a thriving eco system.
Indeterminate license application processes and prohibitive application qualification conditions such as specific localization requirements leading to general uncertainty and higher costs are matters that impede positive investor sentiment. Regulations should seek to provide effective application processes to incentivize and bolster participation and interest. The impetus for localisation is important for nation states but can be better implemented after reaching a degree of maturity of commercial operations.
Infrastructure Deployment and Maintenance
Deployment of infrastructure such as terrestrial fibre on terrain which traverses several kilometers of land that can include routes along rural paths, dense forests and bodies of water, is expensive and difficult to execute. The cost of deployment and maintenance in the event of fibre cuts or other damage can be prohibitive when compared to the actual commercial value being derived from operating the infrastructure.
High costs and administrative hurdles for Right of Way approvals can slow down Fibre optic deployments considerably. This is in addition to other approvals and permits required at the State or Local Government levels. Duplicate approval frameworks and overlapping jurisdiction between State and Local Government are not uncommon, which add to the cost and time to breaking ground on the infrastructure deployment. Issues around unreceipted or unofficial levies which can bring implementation to a standstill and elevate risk and compliance concerns have to be navigated with caution.
Appropriate diligence is required during the acquisition of land, whether leased or purchased, for infrastructure builds, which can add to time and expense. Land title records are often unclear, inaccessible or simply unavailable and legal disputes over land can be anticipated.
Supporting Infrastructure
Power supply and energy sustainability are major dependencies for the success of infrastructure operations. Failure to address the energy deficit concerns could limit the Continent's ability to scale up its digital economy. As an example, Data Centres consume large amounts of uninterrupted power, the demand for which may be unable to be met by local energy sources. Renewable energy, particularly solar power, holds promise as an efficient and environmentally sustainable alternative. Wind and hydro energy are also viable alternatives to power digital infrastructure, while microgrids and battery storage should also be considered. Significant investment is needed to embrace these as mainstream solutions for powering digital infrastructure. Regulations that limit the ability of Data Centres or infrastructure owners to have reliable captive power will only hinder the opportunities for the technology scale up.
Supporting infrastructure like roads, railways, and utility corridors serve as routes for Terrestrial Fibre cables. There are opportunities governments can consider to support the expansion of fibre routes within their territories such as mandating Fibre deployment alongside power transmission lines, water pipelines, and railway corridors and requiring Fibre ducting in all new road and railway construction.
Securing infrastructure is essential and issues such as other infrastructure works such as laying new roads that cause damage to existing fibre infrastructure, vandalism and cable theft are rampant. Some countries have secured strategic infrastructure and designated them as critical infrastructure of national importance with enhanced penalties for damage or destruction. Strict penalties in combination with swift legal enforceability against those found culpable will serve as deterrents and reduce incidents of network disruptions. Network planning that takes into consideration the establishment of redundant fibre routes and multiple interconnection points can help reduce the risk of interrupted connectivity and network failures especially due to some of these frequently occurring issues.
Affordability and Accessibility
Expanding and enhancing digital infrastructure in Africa is essential for digital equity and inclusion, economic growth, and innovation as identified under the United Nations Sustainable Development Goals. While the Continent’s technological infrastructure is advancing, affordability and limited accessibility remain major hurdles to continent wide progress. Issues affecting the operating environment such as inflation, currency volatility and high industry taxes are also contributory factors to the affordability challenge[xi].
Some of these issues can be tackled at the infrastructure level. For instance, operators should be allowed to share fibre infrastructure, such as ducts and poles, to lower costs and should be allowed to utilize existing infrastructure such as power lines for fibre expansion. Governments can consider fiscal incentives for the importation of physical infrastructure such as reduction or relief from import duties.
Competitive Markets, Skills and Talent Development
State owned incumbents exist as a protectionist legacy whilst there is a need open up markets to more private and other investor groups to create long term sustainable and competitive synergies. The high capital-intensive nature of infrastructure projects will require several groups of investor profiles for a thriving industry.
AI, satellite technology, and Data Centre operations will require a highly skilled workforce. Investments in digitally focused education and training programs can grow and develop the talent needed to manage and operate advanced technologies. AI-specific skills, such as data science, machine learning, and robotics, are in high demand, and creating a local pool of experts will be key to ensuring the Continent’s role on the global stage.
Reaching for the Next Frontier
The Continent stands at the precipice of a technological revolution, with its growing infrastructure poised to support new technologies to unlock levels of prosperity and economic development. The promise of these technologies is immense, offering solutions to some of the Continent's most pressing challenges while also positioning it as a leader in the global digital economy.
However, the road ahead is not without obstacles. While strides are being made in building the necessary infrastructure, tackling some of the identified issues would be key to the promise of growth and development. The AFCTA for instance has the objective of promoting the development of cross border networks to strengthen land-based infrastructure and diversify connectivity routes. The call to action to Regulators is to come together on a continental, regional and country level to support these objectives to create a sustainable investment climate for new technology infrastructure for the benefit of all sectors of society.
The readiness for the next frontier depends not only on the physical infrastructure but on a supportive ecosystem of fit for purpose regulation, policies and skills development. The future is bright, and the technology infrastructure revolution in Africa is underway, it can scale to unparalleled heights by seizing the opportunities that are available to define the next era.
This Article is co-written by;
-Madhavi Ramachandran-GM Corporate Services MTN Digital Infrastructure ( Bayobab) and
-Chiago Akpata -Senior Manager Regulatory Affairs MTN Digital Infrastructure (Bayobab).
[i] Africa Telecoms Unions- Africa Broadband Outlook 2024, available at https://atuuat.africa/wp-content/uploads/2024/11/Africa-Broadband-Outlook-2024-v1-00-DRAFT-FINAL-08.11.2024.pdf
[ii] Collen Goko, World Bank backs Africa digital data push with $100 million Raxio deal, Reuters online, available at
[iii] Leah Ngari & Shira Aliza Petrack, “Internet Infrastructure in Africa”, available at https://empowerafrica.com/internet-infrastructure-in-africa/
[iv] Information available at https://www.submarinecablemap.com/region/africa
[v] Nadeem Bashah, Meta plans to link US and India with world’s longest undersea cable project, The Guardian online, available at
[vi] GSMA Report- The Mobile Economy- Sub-Saharan Africa; https://www.gsma.com/solutions-and-impact/connectivity-for-good/mobile-economy/wp-content/uploads/2024/11/GSMA_ME_SSA_2024_Web.pdf
[vii] Nicholas Spina, The Internet of Things through novel low Earth orbit satellites, ITU News, available at https://www.itu.int/hub/2020/04/the-internet-of-things-through-novel-low-earth-orbit-satellites/
[viii] https://www.datacentermap.com/africa/
[ix] November 2023, Ericsson Mobility Report, available at https://www.ericsson.com/4ae12c/assets/local/reports-papers/mobility-report/documents/2023/ericsson-mobility-report-november-2023.pdf
[x] GSMA Article-Powering Progress through Connectivity: GSMA’s Mobile Economy Sub-Saharan Africa Report Calls for Action to Close the Digital Divide - Newsroom
[xi] GSMA Report- The Mobile Economy- Sub-Saharan Africa; https://www.gsma.com/solutions-and-impact/connectivity-for-good/mobile-economy/wp-content/uploads/2024/11/GSMA_ME_SSA_2024_Web.pdf