Internet use on the African continent is on the rise. However, Africa remains a region where only a third of the population can access broadband. Achieving universal, affordable, and good-quality internet access by 2030 will require an investment of US $100 billion. This is according to a report launched at the Annual Meetings of the World Bank Group, which calls for urgent action to close the internet access gap while providing a roadmap to reach this ambitious goal.
The projected trend for Africa indicates a consistent rise in internet users from 2024 to 2029. It will have a collective addition of 337.3 million users (equivalent to a growth of 51.79 percent). Following fifteen successive years of growth, the user count is anticipated to reach a record high of 1.1 billion by 2029. Furthermore, the online penetration rate on the continent was 43 percent – which was below the global average, measured at around 68 percent.
Thanks to the affordability of mobile connections, which eliminates the need for the infrastructure required by traditional desktop PCs with fixed-line internet connections, the benefits of the new digital age have been felt across all the continent’s societal and economic sectors. As more and more of Africa has been “lit up,” there has been a surge in web- and app-based opportunities driven by social media, e-commerce, and fintech services (especially important for a continent where around half of the population is unbanked). However, despite the rapid improvement in connectivity access, internet use in Africa remained the lowest worldwide.
Nearly 80% of all required investments are directly related to the need to roll out and maintain broadband networks. However, connecting the unconnected is about more than just infrastructure: about 20% of required investments consist in building the user skills and local content foundations, and another 2-4% should be allocated to setting up the appropriate regulatory framework, the report notes. While the private sector has driven the most successful broadband initiatives, public agencies play a crucial role by implementing effective sector regulation, addressing potential market failures, and creating the conditions for an open, competitive broadband sector.
The African continent has also invested heavily in fiber-optic submarine telecommunication cable systems – with only the Central African Republic, Eritrea, and South Sudan lacking fiber-optic connection to the submarine cables. The African continent is also planning to launch the 2Africa cable system in 2024, which will have 21 landings in 16 African countries, and Medusa Submarine Cable System, promoted by AFR-IX telecom, with landings in Morocco, Algeria, Tunisia, and Egypt. Despite having 25 submarine cables and 1.2 million km of terrestrial fiber, Africa’s optical fiber footprint remains limited, with many countries lacking the necessary high-speed telecommunications infrastructure. Additionally, Africa has the highest fixed broadband access rates in the world, costing an average of 14.8% of Gross National Income (GNI), far above the ITU’s recommended 2%.
Since the start of 2024, 30 countries have held national elections. In 10 of these, heightened internet censorship, affecting over 2.27 billion people has been recorded. That’s 90.8% of people that have had an election so far this year, or more than a quarter of the world’s population. Large-scale internet shutdowns surrounding elections have cost an estimated $358.3 million to date. In Africa, Senegal for instance, lost over $7.1 million due to internet restrictions during the postponement of their election. So far this year, Sudan has experienced a loss of $244.5 million due to a 3,981-hour internet shutdown, which impacted 3.6 million people. Ethiopia, on the other hand, faced a $130 million loss due to a 1,620-hour internet shutdown, affecting 3.3 million individuals.
To address these challenges and enhance internet access in Africa, the Internet Society has made several recommendations. These include reforming the telecom market to encourage the emergence of competing access networks and expanding national basic infrastructure beyond major submarine cable landing points and primary population centers to additional population hubs. Enhanced connectivity could significantly boost various economic sectors in Africa, particularly e-commerce. According to TechCabal Insights’ “Future of Commerce: Outlook for 2024” report, the e-commerce sector is booming, with total revenue reaching $32.49 billion in 2022 and 387.5 million African online shoppers.
The African startup ecosystem has established itself as a dynamic and resilient force in the global tech industry. It has displayed consistent growth and attracted a diverse pool of investors. Of the 1,400+ investors who participated in at least one $100k+ deal on the continent, 36% were based in North America, 27% in Africa, 21% in Europe, 8% in Asia Pacific, and 7% in the Middle East. This geographical distribution remained consistent between 2021 and 2022, with only minor variations compared to 2020 and 2019. 2023 witnessed a ‘funding winter,’ casting a shadow over the global startup landscape. This abrupt halt in funding, which originated in the United States and China in Q1 2022, has now permeated every continent. Startups in Africa received $3.4 billion in funding in 2023, including equity, debt, and grants. This is a 32% decline from the over $5 billion recorded in 2022, with equity funding alone experiencing a 60% reduction.
Many African startups struggled to survive due to reduced demand and a lack of funding. Entrepreneurs faced a difficult landscape similar to the dot-com bubble era. Funding streams dwindled, operating costs skyrocketed, and customer acquisition became increasingly difficult as large corporations streamlined their software inventories and consumers reevaluated their spending. These challenges have led to several closures in Africa, including some of its most promising startups. However, some African startups demonstrated remarkable resilience amid a challenging business landscape. Confronted by economic uncertainties, these innovative ventures have showcased remarkable agility and adaptability, redefining conventional models to ensure sustained growth.
Industry Leaders
According to Statista, as of January 2024, Nigeria had more than 103 million internet users – the highest number reported all over Africa. Meanwhile, Egypt ranked second with over 82 million users. The majority of web traffic in leading digital markets in Africa originated from mobile devices – in Nigeria, one of the countries with the largest number of internet users worldwide, 86.2 percent of web traffic was generated via smartphones and roughly 13.3 percent via PC devices. This is due in part to the fact that mobile connections are much cheaper and do not require the infrastructure that is needed for traditional desktop PCs with fixed-line internet connections.
In January 2024, Southern Africa stood out as the African region with the most substantial internet penetration rate, reaching approximately 73.1 percent. The proportion of individuals accessing the internet in this part of Africa and Northern Africa surpassed the global average (66.2 percent). Moreover, Morocco boasted an impressive internet penetration of about 91 percent, securing its position as Africa’s foremost country. Libya held the second position with a penetration rate of approximately 88 percent, followed closely by Seychelles at around 86.7 percent.
Industry leaders
Nigeria
Morocco
Libya
Publications/Resources
Internet Associations in Africa
