Study shows telecoms and connectivity are the key to Africa's growth

According to recent studies, the telecommunications sector is the fastest growing industry in Africa. As internet connectivity improves over the coming years this will have a direct impact on economic growth on the continent. Find out more…

According to recent studies, the telecommunications sector is the fastest growing industry in Africa. As internet connectivity improves over the coming years, this will have a direct impact on economic growth on the continent. Considered to be the ‘new frontier’ for growth, Africa has huge potential for economic development.

Fueling this is a digital economy, which serves to improve standards of living and socio-economic conditions. Many African countries have undergone reforms where the digital economy has received significant investment. This has helped to close infrastructure gaps and improve the affordability of the internet.

Investment in telecommunications and connectivity in Africa have come in response to increasing demand for digital services from businesses and consumers. For individuals, improved connectivity translates into better access to e-commerce, the job market, healthcare and resources. For businesses, improved connectivity and internet penetration is fundamental for strengthening domestic markets, boosting international trade, and attracting foreign direct investment (FDI).

Telecoms in Africa spurring economic growth

Historically, the business models for telecoms focused heavily on landline connections and data subscriptions. The need to innovate led many telecoms to diversify their product and service offerings and provide high quality connections, such as fibre internet. The necessary infrastructure for high-speed fibre internet is being rolled out throughout the African continent, particularly in metropolitan areas.

Studies have shown how telecommunication penetration impacts living standards in Africa. Internet usage has a significant impact on economic growth. Improved access to resources, information and essential services directly relates to the socio-economic upliftment of a region.

Rising income levels correlate to a growing demand for telecommunication services. And so a positive feedback loop starts to emerge where rising demand for connectivity fuels economic growth, which in turn stimulates demand for reliable and affordable internet connectivity.

Connectivity in Africa attracts new opportunities for growth

Foreign direct investment in Africa is spurred on by improved telecommunication services and internet connectivity. Through fibre-to-the-home (FTTH) and fibre-to-the-business (FTTB), telecoms have become a key player in Africa's economic improvement.

Entrepreneurs and startups can leverage the benefit of robust internet technologies to improve their operational efficiency and shorten innovation cycles. High-speed internet supports automation and cloud computing making it easier than ever before for new businesses to enter markets and respond to consumer demands.

Sustainable growth in Africa is linked to connectivity

Foreign media enterprises are looking to the telecommunications industry to access emerging markets in Africa. Over-the-top (OTT) media services, such as video streaming platforms, have grown exponentially in recent years, partly thanks to Covid-19 and the demand for home entertainment. It is predicted that by 2027, OTT media industry will triple in value with increasing digital subscriptions to these services.

The purchasing power of Africa's growing middle class generates huge demand for digital services and is leading the pursuit of stable, secure and high-speed internet. For growth to be sustainable in Africa, there needs to be the right digital infrastructure in place. Telecoms are creating a foundation for connectivity and internet access across a wide range of industries, including banking, e-commerce, entertainment and advertising.

Bridging the digital divide is key to Africa’s growth

Since 2009 when the first subsea cable brought high-speed fibre internet to Africa, several more subsea cables have subsequently been laid. Investment in African data centres and fibre-optic networks means that high-speed internet is spreading throughout Africa. The cost for broadband is steadily decreasing while performance continues to improve.

Rapid digitalisation in Africa serves to bridge the digital divide. This paves the way for enterprises in Africa to move towards the Fourth Industrial Revolution. The deployment of fibre infrastructure opens up access to new markets, breathes new life into African economies and is a catalyst for growth. For many in Africa, however, there is a need to improve digital literacy so that the full benefits of internet connectivity can be reaped.

The future for telecoms and connectivity in Africa

Cloud-based computing is reshaping the business world and is the future of connectivity in Africa. Cloud offers improved opportunities for remote collaboration, data analytics and automation. The use of public clouds lower networking costs and ensures that businesses can be competitive in a highly globalised economy. Saying that, there is still some work to be done before the cloud can be fully harnessed in Africa.

Telecoms can continue to secure their place in Africa by refining their engagement with business, delivering innovative solutions and improving access to relevant infrastructure. This will help overcome challenges faced by the African digital market, including connectivity costs, internet speeds and the potential for cloud computing.

Unlocking Africa’s digital potential

Africa has the potential to jump forward in the slipstream by implementing new technologies, such as cloud computing, software-defined wide area networks and advanced cyber security tools. Such digital technologies unlock significant value for Africa and are key to Africa's economic development.

Telecommunication and connectivity providers play a pivotal part in setting the foundation for growth. For Africa to meet the United Nations sustainable Development Goals, governments, businesses and individuals need to take advantage of what the digital economy has to offer.

SEACOM Business works with enterprises to provide tailored solutions for their digital needs. For more information or to get a quote for our connectivity, cyber security or cloud solutions, email us at marketing@seacom.com or leave us a message.

SEACOM owns Africa’s most extensive network of information and communications technology (ICT) infrastructure, including subsea cables and secure internet connections. We offer a diverse range of flexible, scalable and high-quality solutions for businesses that meet world-class standards for connectivity.

SEACOM is privately owned and operated, making it agile and adaptable to the needs of the customer. This makes us the preferred ICT and internet connectivity partner for African businesses and peripheral service providers. We can guarantee high-speed, low-latency and secure internet connections to corporates and small enterprises.

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