Building e-Governments in Africa: reliable ICT infrastructure as the cornerstone

Challenge description

Telecommunications infrastructure is crucial in terms of successful performance of e-government platforms. It has an impact on the platform’s performance, including its speed and the frequency of shutdowns due to the poor connection. What is more, the state of telecommunications infrastructure development directly affects citizen engagement and service delivery.

The African telecommunications market in general is largely monopolistic, with the government holding control over the main actors. Still, the state does not have an essential resource base to invest in internet connection development in the remote areas.

As outlined in the AU Digital Strategy, telecommunications infrastructures “are still very precarious, given the lack of a balanced financing plan for their maintenance, development and renewal”.

The UN Telecommunication Infrastructure Index (TII), coined out in order to assess e-government development, is based on four key indicators, namely number of internet users per 100 inhabitants; number of mobile subscribers per 100 inhabitants; number of wireless broadband subscriptions per 100 inhabitants; and number of fixed broadband subscriptions per 100 inhabitants.

According to the UN E-Government Survey 2022, Mauritius had the highest TII rate in Africa (0.7588). The average rate for the continent is 0.41. The majority of landlocked countries have relatively small TII rates. For instance, Ethiopia (0.15), Niger (0.14), Chad (0.12), Central African Republic (0.08) and Uganda (0.25) are the least developed in terms of the necessary telecommunications infrastructure. Botswana is the leader among the landlocked countries, with the TII rate of 0.68, followed by Mali (0.44), Burkina Faso (0.393), Zambia (0.39) and Zimbabwe (0.38).

Investment and PPP

Allocating investment for telecoms infrastructure is among the key challenges, especially with other infrastructure sectors, like transport and energy, requiring their share of financing. The basic principle of public investment management postulates channeling public investment into the projects with lower returns, which ICT is not usually considered. According to different estimates, Africa requires investment of USD 130-170 billion annually to bridge the infrastructure gap.

As per ICA data, in 2020, infrastructure investment by 49 African governments totaled USD 33.4 billion. Out of this, national allocations to the ICT sector amounted to USD 0.9 billion or 3% of the total national investments.

Public-private partnership would be the solution, however, an uncertain policy environment and numerous political, currency and  risks associated with infrastructural projects drive private companies away. According to McKinsey research conducted in 2020, even though there is a plethora of actors willing to invest in infrastructure in Africa, 80% of infrastructural projects in the region fail at the feasibility and business-plan stages, and only 10% reach the financial closure. This exerts high financial pressure on infrastructure developers. Such a low success rate is the result of regulatory, political, planning and negotiation shortfalls (for instance, delays in obtaining licenses and permits and lack of long-term planning leading to preferential investment in low-impact and short-term projects).

The World Bank estimates of public-private investment in ICT in selected African countries shows that there are great regional disparities: South Africa is the leader among countries with data available for 2022 with USD 198.5 million, whilst for DRC the value was estimated at USD 21 million, for Nigeria it was USD 100.2 million.

Globally, as of 2023, ICT and telecoms account for 10% of all PPP projects.

Electricity

According to Africa Energy Outlook 2022, 600 million people, comprising 43% of the population of Sub-Saharan Africa, do not have access to electricity. Ghana, Kenya and Rwanda are highlighted as successful in terms of universal connectivity development.

Electrification rates in Africa are estimated to be the lowest in the world. A significant disparity is seen between the subregions. Northern Africa has a stable access to electricity, with an electrification rate of 99% (2020). On the other hand, in 2021, the access to electricity in Sub-Saharan Africa stood at 50.6%, with 80.7% in urban and 30.4% in rural areas.

As of 2021, the largest sources of electricity generation in Africa were natural gas (42%) and coal (28%). Renewable energy sources are yet not popular. Hydropower is the most common source, with 17.5% of electricity being generated from it.

The Africa Energy Outlook 2022 outlines that the continent possesses 60% of the world’s most efficient solar power resources, however the existing solar power plants capacity is 1%.

The same year, total electricity consumption per capita in Africa stood at 0.636 megawatt hours (MWh), which is 81% lower than the global average of 3.358 MWh. Libya was the continental leader, with the electricity consumption rate per capita of 3.793. Due to the population growth, the figures have recently declined, and are projected to recuperate to 2010s rates not earlier than in 2026. As of 2023, the UN found that the average figure for energy consumption per capita in sub-Saharan Africa stood at 200 kilowatt hours (kWh) of electricity per year. In contrast, 1,442 kWh per capita are being consumed in North African countries. Inhabitants of rural areas utilize 50 kWh annually.

Undersea and terrestrial fiber optic cables

Based on the Network Startup Resource Center (NSRC) data, 39 African countries are connected to already operational and/or planned terrestrial fiber optic cables. As of 2021, roughly 57% of the population of Sub-Saharan Africa lived in the area covered by fiber optic networks. The cables predominantly bring connectivity to coastal areas. Despite the advances in fiber-optic technology, the cables are unavailable in the African mainland.

As plenty of IT content comes from outside, and both state and private platforms are located on foreign servers and data centers, subsea cables transmit vast amounts of critical and vulnerable data. Cable interference can result in shutdowns of e-government platforms, if the content is stored outside. Privacy issues arise as well.

Nevertheless, due to cable failures that have been reported to happen during the recent years, with the last one detected in March 2024, a vast number of the continent’s population could be left without internet connection. Among the cables where operational declines occurred are SAT-3/West Africa Cable System (WACS), the Africa Coast to Europe (ACE), MainOne, EIG, Seacom, AAE-1. The connection was cut off for hundreds of inhabitants of West and Central Africa.

Telecom Towers

The majority of the African population goes online and performs business operations via mobile phones, as this type of apparel is far more affordable than personal computers, wireless connectivity services are deemed to be of the utmost importance. The number of 5G mobile subscriptions in Sub-Saharan Africa is projected to grow exponentially, with 7.24 million in 2023 and 104.43 in 2027.

In 2023, the Telecom Towers market size in Africa was estimated to comprise 199 thousand units, and is projected to extend up to 208 thousand units by the end of 2024. The major actors on the market are IHS Towers, headquartered in the United Kingdom and present in Cameroon, Côte d’Ivoire, Nigeria, Rwanda, South Africa and Zambia; American Tower Corporation (Ghana, Burkina Faso, Niger, Nigeria, Kenya, Uganda, South Africa); a british Helios Towers (Tanzania, Senegal, Malawi, DRC, Republic of Congo, Ghana, South Africa, Madagascar. South African Eskom Holdings Limited and Zambian-based ZESCO Limited, both being governmentally-owned, are also among the key actors.

Based on TowerXchange calculations, Nigeria has the largest telecom towers market size in Sub-Saharan Africa, with 39,5 thousand towers as of 2023, then followed by South Africa (24,9 thousand) and Ethiopia (10,2 thousand). The lowest presence of teletowers is in Namibia (881), Gabon (993) and Republic of Congo (1070).

The use of 2G/3G/4G and 5G in Sub-Saharan Africa in 2022 is 1.81 exabytes and 0.02 respectively. As of 2023, 27 mobile operators have already made 5G services available. According to GSMA, commercial 5G networks are now live in Botswana, Ethiopia, Gambia, Togo, Nigeria, Kenya, Uganda, Tanzania, Mozambique, South Africa, Zambia, Zimbabwe, Madagascar, Mauritius and Seychelles.

In 2022, 4G networks comprised 35% of total internet connections. By 2026, it is forecasted to become the most widely adopted technology, exceeding 3G, which now is the most common. In 2022, the number of 3G connections was over 50% of total.

According to ITU, in 2022, 50% of the continent’s population was covered by 4G networks, 33% could only access 3G networks, and 9% was in the zone of 2G. Almost 50% of the rural population is covered by 3G, compared to 25% covered by 4G networks. The majority of urban population (84%) is able to access 4G networks.

Satellites

Satellite internet in Africa is largely maintained by Intelsat, a multinational satellite communications provider headquartered in the US, and Africa Mobile Networks (AMN), a group of companies operating in Africa with head office in the UK. Since 2018, the companies have implemented over 3 thousands rural base satellite antennas across the continent. Nigeria is the companies’ largest site, where over 1,350 satellite antennas are deployed. AMN alone covers 15 African countries, providing the population living in rural areas with 2G, 3G and 4G connection.

In general, such satellite internet communication services as VSAT (Very Small Aperture Terminal) are primarily offered by international private companies. In 2022, the market size was estimated to be USD 525 million, and is forecasted to reach Compound annual growth rate (CAGR) of 8.6% over the period from 2022 to 2030. It is notable that VSAT market development is led by the oil, gas and marine sectors. According to Africa VSAT Market Size and Forecasts (2020-2030), GlobalTT (Belgium), NTvsat (Germany), Talia Communications Limited (UK), Afrikanet Oxford Consultech Limited (UK), Norsat International Inc. (Canada), Sandstream Telecoms (South Africa), VSATmena FZCO (UAE), EchoStar Corporation (US) and Link Communications Systems (UK) are the leaders on the market.

VSAT technology includes C-Band, which is a viable option for remote areas where fiber optic and cable infrastructure is inaccessible, and is resistant to various weather conditions; Ku-Band, predominantly used by households and small businesses residing in urban areas; and Ka-Band, which provides the fastest connection levels, however is vulnerable to adverse weather conditions. The projected trend in terms of the technology use is telemedicine, especially in the remote rural areas.

Land-locked countries

Land-locked countries are cut off from undersea cables, which hampers the development of connectivity services. Satellite internet is the most viable opportunity.

According to the ITU, the main obstacles of remote areas and landlocked countries regarding internet connectivity incorporate the low return of investment by Operators and Tower companies, as these areas usually lack sustainable electric power connectivity which is essential for internet connection, which creates additional costs on installation of power plants, increasing the final cost of the internet. Furthermore, licensing frameworks and application processes are opaque, along with lacking fiscal incentives, which makes the areas unfavorable for business operators.

The issues highlighted above result in low internet affordability, as well as small return on investment (ROI).

Solutions

Improving electricity access:

• Increasing the number of national grids is the most cost-effective option for improving access to electricity. Mini-grids and solar-based stand-alone systems are referred to as the most efficient options.
• Increasing the use of renewable energy, such as hydropower and solar energy, as well as implementing grid interconnections. Cost-effective, ecologically friendly. Lots of resources.
• Regulatory reforms, including the cost-of-service electricity pricing reforms for the energy sector. Now exist or planned in 24 African countries (not disclosed). Appropriate rate and tariff systems can ensure the profit of private operators, and reduce risks.
• Energy deregulation will increase private sector engagement and competition, as well as reduce costs.

Enhancing Internet penetration:

• The AU Digital Strategy highlighted the ‘need to focus on leveraging public-private partnerships and the channeling of public resources through the private sector in order to build digital infrastructure at national and regional levels and scale up digital services and competitiveness in the Continent’. International partnerships can also provide access to best international practices. 

Experience of the leading Russian developer and manufacturer of telecommunications equipment T8 provides an example. The company has extensive experience in deploying DWDM telecommunication equipment and innovative solutions for fiber-optic communication lines in Russia and countries all over the world. T8 offers comprehensive solutions for building DWDM-networks: design, supply, equipment installation and maintenance, training. 

Among its solutions are: backbone DWDM networks which work on old and new fiber (Volga DWDM platform), regional and metro DWDM networks which work on foreign wavelengths, solutions for monitoring of the optical infrastructure, DCI equipment for data centers, 5G transport networks, Alien Wavelength technology, early detection systems for critical infrastructure objects (Distributed Acoustic Sensor Dunay).

T8 invests in improving ICT infrastructure worldwide and in the African region in particular. For now, it already exports equipment to South Africa, Republic of Congo and Ethiopia. Moreover, the transnational park Limpopo in South Africa and critical infrastructure in Tunisia are equipped with DAS Dunay. The system is being produced and installed by T8 SENSOR, a company for the development and manufacturing of fiber optic sensor systems. T8’s solutions were also presented at numerous international and African forums, including AFRIСACOM 2017, Cairo ICT 2022, GITEX 2023.

• Governments should “invest in investing” and improve public financing management as well as facilitate private investments through establishing a clear PPP regulatory framework, simplifying permit acquisition, reducing legal, operational, political and currency risks, enhancing commercial viability of projects, driving collaboration with national and international financial institutions.
• According to ITU, in order to expand internet connectivity in landlocked countries and remote areas, adequate licensing framework guidelines ought to be provided to attract investment. Improving and increasing transparency in operator’s license obtainment is also crucial. 
• Fixed wireless access (FWA) is a wireless technology that uses radio frequencies instead of fiber which is useful for rural areas. However, the solution has not gained wide popularity because of the high cost of deployment.
• Portable solutions like ‘Internet-in-a-box’ can also be an alternative, providing access to all sorts of data without Internet connection: including videos, photos, medical or any other information.

Regional telecommunications infrastructure policies can help establish robust and interoperable cross-border infrastructure as well as facilitate resource allocation and allow to benefit from the economy of scales. Some regional plans have already been adopted including Southern African Development Community (SADC): Regional Infrastructure Development Master Plan (to be implemented by 2027), East African Community (EAC): EAC Broadband ICT Infrastructure Network, Economic Community of West African States (ECOWAS): ICT Strategy 2018–2023, Arab Maghreb Union (UMA): Broadband Optical Fibre Telecommunication Network initiative.

Alternatives:

Whilst building new infrastructure may exert significant pressure on public finances, there are alternative, cost-cutting approaches. For instance, governments can provide non-grid energy sources (solar panels, electricity generators) and FWAs to public facilities in non-electrified areas (e.g. for schools, hospitals, post offices, etc.). This way, public establishments can serve as points of access to the cyberworld even if the area is not electrified and does not have an Internet connection.

In the cases section we also present practices of sending buses equipped with electricity generators, Internet connection and ICT devices in remote areas to provide temporary access to the Net.