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Digital Africa: Building the Internet Ecosystem

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Presentations from the IDATE DigiWorld Executive Club - Africa Going Digital

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Digital Africa: Building the Internet Ecosystem

  1. 1. Digital Africa: Building the Internet ecosystem London Club - TechUK, 13 March 2018 Didier POUILLOT Head of Practice Telecom Markets & Regulation +33 6 70 70 85 86 d.pouillot@idate.org www.idate.org
  2. 2. Why Africa? A region that still lags behind the rest of the world • 16.5% of the global population… but only 2.8% of GDP • A mosaïc of disparate countries Strong population growth • A young population • A mostly urban population by 2035 • Africa’s growing middle class ICTs can address major African challenges… • to accompany growth (population, economy) • to develop infrastructure (water, energy) • to promote social inclusion
  3. 3. North America Europe Africa 33.1% 28.7% 1.6% 90.9% 47.1% 3.6% Source : IDATE DIgiworld Still large discrepancies in access between Western and emerging countries … mainly due to the lack of infrastructure 4G density (LTE subscribers as a % of population, at end 2017) Fixed broadband density (broadband connections per 100 people, at end 2017)
  4. 4. FTTH is being rolled out FTTH/B rollout status in 2016 4G services launch LTE rollouts in 2016 Source : IDATE DIgiworld 4G Commercial 4G Planned However, deployments are underway in most African countries Commercial Planned
  5. 5. Telcos’ combined CapEx in Africa (bn €) Contribution to investments in ICT networks in Africa (2012-2016 grand total = 66 bn €) Supported by telcos mostly funded by the private sector 83% 17% Source : IDATE Digiworld Accelerating deployment thanks to increasing private and public investments Private sector Public sector 8.8 10.5 12.3 12.1 13.3 2012 2013 2014 2015 2016 13% 87%
  6. 6. Telecom service revenue in Africa (bn €) Source : IDATE Digiworld Despite revenue growth down North Africa Sub Saharan Africa Growth rate 2011-2016 Growth rate 2016-2021 5.8% 4.0% 3.2% 2.3% 0 10 20 30 40 50 60 70 80 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
  7. 7. SIM cards in Africa (in millions) Source : IDATE Digiworld Mobile growth mainly due to increase of population… North AfricaSub Saharan Africa 2017 82% 88% 113% 112% Mobile density 2021 0 200 400 600 800 1 000 1 200 1 400 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
  8. 8. Mobile broadband subscriptions (in millions) Source : IDATE Digiworld … but mobile data gains momentum Mobile broadband subscriptions 2017 35% 49% Mobile BB as a % of mobile subs. 2021 0 200 400 600 800 1 000 1 200 1 400 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
  9. 9. Fixed broadbrand connections (in millions) Source : IDATE Digiworld Fixed broadband also developing North Africa Sub Saharan Africa 0 5 10 15 20 25 30 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 However much less developed than mobile • notably in SSA
  10. 10. FTTH deployments in Africa (June 2017) Source : IDATE Digiworld Promising developments in FTTH Commercial launch in about 17 countries in SSA plus 4 NA countries FTTH leading countries • South Africa is the leader (650,000 subscribers) • Other countries in the Top 5: Mauritius, Angola, Kenya and Tanzania • Then 4 other territory and countries (15,000 to 50,000 subscribers): La Réunion, Zimbabwe, Mozambique, and Nigeria Commercial Planned South Africa Kenya Namibia Angola Nigeria Zambia Zimbabwe Mozambique Madagascar Lesotho Rwanda Réunion Mauritius
  11. 11. 83% 17% Source : IDATE Digiworld Multiple platforms Mobile first • CapEx in mobile networks accounts for 85% of investments in telecom infrastructure Wireline needed for: • Backbone deployments • And access (see FTTx) New challenges for satellite
  12. 12. Source : IDATE Digiworld A digital ecosystem under construction… Innovation • 77 technological start ups launched in Africa in 2016 (vs 55 in 2015, according to Partech Ventures)… • … funded by international foundations, governments/local authorities, private sector Various domains covered • Banking (m-money) • Education • Health • Agriculture • Commerce • eGov • Smart city • …
  13. 13. Source : IDATE Digiworld … with diverse options/contributors Multiple players • Private companies / public sector • Local / foreign (Europe, China, India…) Public policies • Regulation • Plans to support digital economy Innovative investment modes • Sharing / outsourcing • PPP Other options to be investigated • Reverse innovation? • …
  14. 14. Regulation Towards more certainty/stability Public policy Which incentives for developing usage? Economic models How to make/keep business profitable? Investments Who will pay ? For what? In conclusion, very good prospects but still many challenges ahead

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