02 May 2024

The World Bank estimates that Africa needs an investment of $86 billion to have the entire continent connected to the internet to reap digital dividends. However, the absence of services that could stimulate increased use of the internet is an additional hurdle in the path towards development of Africa’s digital economy.

A collaboration between the World Bank and the African Union (AU) on the Digital Economy for Africa (DE4A) initiative, meant to digitally empower all individuals, businesses, and governments in Africa by 2030 could change the region’s digital landscape. This partnership has already enhanced Africa’s digital landscape, increasing broadband access from 26% to 36% and boosting the average broadband download speed from 2.68Mbps to 8.18Mbps. Moreover, the cost of 1GB of data has halved, falling from 10.5% to 5% of the monthly Gross National Income (GNI) per capita.

Isabel Neto, digital development practice manager for Eastern and Southern Africa at the World Bank, however, warns that the slow pace of connectivity across the continent, despite numerous ongoing initiatives, is of concern. While the DE4A initiative has made significant strides, she believes that the pace of progress needs to be accelerated. The World Bank has identified 22 indicators and prioritized six programs to track the progress of this initiative.

Neto said that the substantial investment required for this initiative cannot be shouldered solely by African governments, emphasising the necessity of public-private partnerships for the success of this ambitious project.

“It will require $86 billion for the whole of Africa to be connected. 80% of the funding will come from the private sector. This collaborative approach will ensure the mobilisation of resources and expertise from various sectors, thereby accelerating the pace of digital connectivity across the continent,” said Neto.