Mernat Mafirakurewa, AfricaNews reporter in Johannesburg, South Africa Photo: Peter Bendheim
US-based advisory firm AfricaNext Investment Research expect Africa's broadband market to grow more than four-fold in five years to 12.7 million users from 2.7 million in 2007.
New telecoms infrastructure is set to boost capacity and cut tariffs in Africa this year, unlocking the continent’s high-speed Internet potential and creating growth opportunities for operators and equipment firms, the organization said.
AfricaNext said growth will be facilitated by new submarine cables and national networks due to launch this year and the emergence of wireless technology such as EVDO and WiMax.
Despite being the fastest-growing telecoms market in the world, Africa’s broadband growth has been hamstrung by costly international bandwidth and patchy national infrastructure, impeding development and deterring investors. The group said 2009 could represent the most significant opportunity for investment returns in the African telecoms sector since the mobile voice boom, which saw subscribers rocket to 270 million in 2007 from two million nine years earlier.
While West Africa already has high-speed Internet connectivity through the SAT-3 cable that loops around the west of the continent, East Africa still relies on dial-up or expensive satellite connections.
But projects worth around US$6 billion, including 10 undersea cables and several national networks, are planned or under construction in Africa, according to South African research firm BMI TechKnowledge. Investors and telecoms companies with an eye on expansion are preparing to take advantage of the new capacity.
Unlisted South African investment firm Convergence Partners is finalizing deals in Tanzania and Mozambique. CEO Brandon Doyle told Reuters recently that the company was looking at taking minority stakes in Internet Service Providers (ISP) and would provide funding for network expansion and the launch of wireless broadband infrastructure for corporate clients.
“We are in a process of closing transactions, where we will be investing in established ISP businesses,” he said.
The full benefit of undersea cables will only be felt if national infrastructures in Africa are also improved, and progress is already being made in many countries. In South Africa, MTN and second fixed-line operator Neotel are rolling out a 5 000 km national network, which will allow them to circumvent former monopoly Telkom’s infrastructure.
“There is a confluence of indicators that suggest that for the first time in more than a decade, broadband growth in the African continent may be on the verge of truly taking off,” said AfricaNext.
US-based advisory firm AfricaNext Investment Research expect Africa's broadband market to grow more than four-fold in five years to 12.7 million users from 2.7 million in 2007.
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