< Previous20 edge_ june 2023 cover story Building and enhancing the connectivity infrastructure So, what can be done to tackle these challenges head-on and pave the way for enhanced connectivity across Africa? Let’s explore some key investment trends that hold the potential to transform Africa’s connectivity infrastructure. First and foremost, mobile networks are witnessing rapid expansion across the continent. The transition from 2G to 3G or 4G networks, along with network sharing initiatives, is accelerating network coverage. While the adoption of 5G in Africa is still limited, with only a handful of markets having established commercial networks, mobile devices are expected to remain the primary method of internet access. By improving and optimising 4G and 5G networks, Africa can reap numerous benefits, such as increased bandwidth, reduced latency, improved spectrum efficiency, and the introduction of innovative Internet of Things (IoT) products and services. Another crucial aspect of enhancing connectivity infrastructure is the deployment of fibre-optic cables. While Africa is predominantly covered by submarine cables, a few landlocked countries still face limited fibre-optic network penetration. Presently, sub-Saharan Africa has below two percent household penetration of fibre-based broadband, with most of the concentration in capital cities. However, notable projects are underway to address this issue. The 2Africa cable system, scheduled for completion in 2024, will encircle the continent with 21 landings in 16 nations, effectively doubling Africa’s internet capacity. Additionally, the Equiano subsea cable project, connecting the Atlantic coastline, is set to complete its first phase in 2022. These initiatives will significantly bolster Africa’s connectivity backbone. Data centres also play a crucial role in the connectivity landscape. Concerns over latency and data sovereignty are driving the trend of localising data centres within Africa. Currently, the continent contributes a mere one percent of the global data centre capacity, with the majority concentrated in South Africa. However, major players like Oracle, Amazon Web Services, and Google have started establishing cloud regions in Africa, recognising its potential. To achieve a similar level of density as South Africa throughout the rest of the continent, an estimated 700 new data centres with a capacity of 1,000 MW would be required. The African Data Centres Association has shed light on the immense need for expansion in this area. “Technology and innovation can play a major role in bridging the connectivity gap in Africa,” says Todd Ashton, Vice President and Head of South and East Africa, Ericsson. “For example, wireless technologies like 5G can enable faster and more reliable connectivity in areas where the business case for fibre would not be sustainable. Additionally, new technologies like satellite internet can bring connectivity to remote areas that are difficult to reach with traditional infrastructure. “Beyond infrastructure, innovation can also help address digital literacy challenges and make connectivity more affordable by developing new business models and payment systems that are accessible to more people.” Jawad Jalal Abbassi, Head of Middle East and North Africa, GSMA “...the continent is making progress in the right direction with increased competition and the implementation of improved policies related to spectrum allocation...” - Jawad Jalal Abbassi, GSMAedge_ june 2023 21 cover story Connecting the unconnected It is important to note that the issue of connectivity in Africa is not just a technological challenge. It is also a social, political, and economic challenge. Addressing this issue will require collaboration between governments, civil society, and the private sector to create an enabling environment for the tech industry to thrive. “Governments, regulators, and private sector actors can work together to accelerate progress on connectivity in Africa by collaborating on policy development, infrastructure investment, and educational initiatives,” says Ashton. He adds, “Additionally, governments and private sector actors can work together to develop educational initiatives that help people develop the skills necessary to use digital technologies effectively. By working together, governments, regulators, and private sector actors can create a more sustainable and inclusive approach to expanding connectivity in Africa.” As Africa is making steady progress in bridging the coverage gap, it still hasn’t closed the usage gap. The number of Africans who live within the footprint of a mobile broadband network are still not using internet services. “In the Sub-Saharan Africa market, there is a significant usage gap, which currently has the highest percentage in the world. This gap can primarily be attributed to high handset costs. Handset costs continue to pose a major obstacle for many Africans in accessing ICT, mobile services, and developing digital literacy,” says Jawad Jalal Abbassi, Head of Middle East & North Africa, GSMA. He added, “However, the continent is making progress in the right direction with increased competition and the implementation of improved policies related to spectrum allocation, among other factors.” The usage gap exacerbates the digital divide in the region, impeding progress towards digital inclusion. This serves as a stark reminder of the enormous task that still lies ahead in bringing the majority of African populations into the digital economy. In the connectivity game, achieving higher capacity at lower costs is the ultimate measure of success. Attaining this goal is no easy feat. However, while this may seem daunting, governments and technology players have the unique opportunity to shape the connectivity landscape in Africa to match the levels seen in developed economies. Over time, with the right mindset, strategies, technologies and policies in place, Africa is set to reap the fruits of a connected, digital future. $100B The investment required to achieve universal and high- quality internet access in Africa Source: World Bank22 edge_ june 2023 featureFROM AFRICAN ROOTS TO GLOBAL HEIGHTS Inspiring personalities with African origins who reshaped the innovation landscape PEOPLE By Arya Devi A frica has proven itself to be a force to be reckoned with in the tech arena. In recent years, a new generation of entrepreneurs, and visionaries with roots in Africa has been rewriting the narrative of the tech industry, defying stereotypes and reshaping the landscape of innovation. Today, this extraordinary continent is making its mark by leveraging technology to solve challenges, create economic opportunities, and improve lives. With its unique blend of diverse cultures, entrepreneurial spirit, and rapidly growing population, Africa has become a promising frontier for technological breakthroughs. Here, we shed light on five remarkable tech innovators who have risen from Africa’s vibrant tech ecosystem. Their stories exemplify the immense potential and impact that can arise when talent, opportunity, and visionary thinking converge. Through their relentless pursuit of excellence, these individuals and their ventures are redefining the boundaries of what is possible, and in the process, reimagining Africa’s place in the global tech arena. edge_ june 2023 23 feature Age: 51 Net worth: $179.5 billion (as of May 2023) Company: Tesla, SpaceX, Neuralink, The Boring Company, and more Education: With African roots tracing back to his mother, Maye Musk, Musk pursued his education in North America, attending schools in Canada and the United States. Famous for: Musk has left a mark on the tech industry with his groundbreaking contributions. Renowned for his relentless pursuit of innovation, Musk has revolutionised multiple sectors. As the founder and CEO of Tesla, SpaceX, Neuralink, and The Boring Company, he is one of the most prominent figures in the global business and tech secenes. He acquired Twitter last year in a deal worth $44 billion. He had various ups and downs since then. An up for instance was him becoming a Guinness World record holder, but on the downside, the title was for losing $200 billion. Currently, Musk is the second richest person in the world. ELON MUSK24 edge_ june 2023 feature MARK SHUTTLEWORTH MO IBRAHIM Age: 49 Net worth: $500 million Company: Canonical (developer of Linux-based Ubuntu OS), Thawte Consulting Education: Born and raised in South Africa, Shuttleworth attended the University of Cape Town, where he studied Business Science and Information Systems. Famous for: Popular for being the first South African in space as a self-funded space tourist, Shuttleworth founded Thawte, a digital certificate and internet security company in 1995. Additionally, he founded Canonical Ltd, the company behind the popular Linux-based operating system, Ubuntu. Age: 77 Net worth: $1.2 billion (as of 2023) Company: Celtel, Mo Ibrahim Foundation Education: After completing his early education in Sudan, Ibrahim pursued higher studies in the United Kingdom, earning a Ph.D. in Mobile Communications. Famous for: Renowned for his pioneering efforts in the African mobile communications industry, Ibrahim founded Celtel International, a mobile telecommunications company that brought affordable and accessible mobile services to millions across Africa. After selling Celtel, he established the Mo Ibrahim Foundation, which focuses on promoting good governance and leadership in Africa.edge_ june 2023 25 feature REBECCA ENONCHONG Age: 52 Company: AppsTech, Afrilabs Education: Originally from Cameroon, Enonchong pursued her education at Lycée Akwa before moving to the United States for further studies Famous for: A prominent tech entrepreneur and advocate for digital rights in Africa, Enonchong is the founder and CEO of AppsTech, a global provider of enterprise application solutions. She is also the co-founder of Afrilabs, a pan-African network of technology and innovation hubs. She has been a strong advocate for improving the African tech ecosystem and empowering women in the industry.26 edge_ june 2023 feature STRIVE MASIYIWA Age: 62 Net worth: $1.9 billion (as of 2023) Company: Econet Wireless, Higherlife Foundation Education: Born and raised in Zimbabwe, Masiyiwa pursued his education at the University of Wales, where he obtained a degree in Electrical Engineering. Famous for: As the founder and executive chairman of Econet Wireless, one of the leading telecommunications companies in Africa, Masiyiwa played a significant role in revolutionising the telecom industry across the continent, providing affordable mobile communication services to millions of people. Masiyiwa has also been recognised for his efforts in advocating for better governance and economic growth in Africa. www.itp.net provocative. innovative. insightful. the voice of the digital revolution FOR ENQUIRIES Priyanka Pillai Senior Sales Manager, edge T: +971 4 444 3399 M: +971 52 576 0260 E: priyanka.pillai@itp.com28 edge_ june 2023 O ver the years, the African tech market has emerged as a dynamic force, defying expectations/ and capturing the attention of global investors and tech enthusiasts alike. From the vibrant streets of Lagos to the bustling tech hubs of Nairobi and Cape Town, a symphony of ideas, talents, and technologies is propelling Africa’s tech revolution forward. Jonathan Tullett, Associate Research Director IT Services, Sub-Saharan Africa, IDC, shared insights into the complexities and opportunities that make Africa’s tech scene a captivating force to behold. What are the trends shaping the dynamic landscape of the African tech market? Within the diverse African tech landscape, it is important to recognise that there is no singular “African tech market.” Instead, there are 54 distinct tech markets across the numerous African countries, each with its own unique characteristics, spanning East/West divisions and language preferences like Francophone countries. Nevertheless, there are overarching tech trends that resonate throughout the continent. These include the expansion of connectivity encompassing mobile networks, terrestrial fibre infrastructure, and international fibre connectivity. This surge in connectivity fuels remarkable growth in mobile and internet technologies, catalysing transformative changes in various sectors such as e-commerce, remote work, education, digital financial services, social interaction, and entertainment. Additionally, the adoption of cloud computing has accelerated due to improved and more reliable internet access, leading to widespread acceptance among businesses. Simultaneously, there is a notable expansion of data centres, with significant investments being made in local facilities by international groups. This development not only meets the demands of cloud providers targeting larger economies but also addresses the infrastructure modernisation needs of local enterprises. Consequently, colocation hosting is experiencing parallel growth alongside cloud revenues. Moreover, regulatory transformations have been witnessed across most African nations, with swift implementation or extension of legislation governing privacy, online transactions, and related domains. Many of these regulations align with global standards such as the General Data Protection Regulation (GDPR), playing a pivotal Exploring the latest trends shaping the Africa’s tech market By Adelle Geronimo Vibrant startup scene African start-ups are attracting investments from global players TRENDS D e f y i n g b o u n d a r i e s interviewedge_ june 2023 29 interview role in stimulating the growth of cloud services. Which sectors of the African tech market are currently experiencing the most growth, and what factors are driving this growth? Telecom companies are typically high growth in terms of tech spend as they provide vital digital infrastructure while simultaneously upgrading networks and expanding coverage. Financial services is also another strong vertical as organisations in this sector such as banks and other financial institutions accelerate digitalisation to keep up with fintech competition. In centralised markets, significant investments are being made in the retail/wholesale segments, driven by large retail networks and a surge in e-commerce, which gained remarkable momentum during the Covid-19 lockdowns. However, it’s important to note that the prominence of these sectors varies from country to country, with unique country-dependent dynamics. Meanwhile, in markets rich in natural resources, such as Nigeria with its vast oilfields, substantial tech investments are observed in resource and extraction industries. From your perspective, what are the biggest hurdles facing the African tech market, and what strategies can companies and governments employ to surmount these challenges? Challenges vary from country to country, but they share several common concerns. One prominent obstacle is the scarcity of skilled professionals in advanced technology fields throughout Africa. The high demand and low supply of talents in areas like cloud engineering, cybersecurity, and data science contribute to elevated costs and talent retention challenges. Although efforts are underway to bridge this skills gap, the rapid growth in demand poses an ongoing challenge. Another pressing issue arises from disruptions in ICT supply chains caused by the impact of the Covid-19 pandemic. The resulting strain on hardware supply into telecom and enterprise environments has highlighted vulnerabilities in existing digital strategies. Additionally, political interventions have emerged as a concern, with instances of increased online censorship or internet blackouts, raising apprehensions for digital economies. Reliability of infrastructure, specifically in terms of electricity and communication, poses a significant hurdle. While the presence of more undersea cables and fibre backhaul has improved internet and cloud consumption, interruptions to connectivity persist. Power shortages plague certain countries, directly impacting economic costs and the budget allocation for digital investments. These shortages also escalate expenses related to data centre operations, digital or remote workforces, and ancillary sectors such as communications infrastructure and transportation. What role do you see African startups playing in shaping the future of the continent’s the tech landscape, and how can they best position themselves for success? In many African countries, there is currently a surge of tech startups, albeit with varying levels of local support. These startups face significant challenges in accessing funding, which has become a crucial area where technology-savvy governments are actively fostering partnerships and investing in support systems for their startup economies. This proactive approach not only generates new economic activity but also addresses the growing demand for education and skills development. Recognising the potential for increased market share, major vendors are also investing in these startups, viewing them as gateways to broader opportunities, with cloud providers playing a particularly significant role. While the scope of opportunities is vast, key sectors attracting attention include fintech, entertainment, media, logistics, transport, e-commerce, and public services, although this only scratches the surface. “The high demand and low supply of talents in areas like cloud engineering, cybersecurity, and data science contribute to elevated costs and talent retention challenges” Jonathan Tullett, Associate Research Director IT Services, Sub-Saharan Africa, IDCNext >