Connecting Africa
Through Broadband
A strategy for doubling
connectivity by 2021 and
reaching universal access by 2030
Running footer 1
Connecting Africa
Through Broadband
A strategy for doubling
connectivity by 2021
and reaching universal
access by 2030
Broadband Commission
Working Group on Broadband for All:
A “Digital Infrastructure Moonshot” for Africa
October 2019
Table of Contents
Foreword.............................................................................................................................................. 8
Acknowledgements......................................................................................................................... 12
Executive Summary......................................................................................................................... 14
Abbreviations.....................................................................................................................................22
1. Introduction................................................................................................................................24
2. Snapshot of Africa’s Digital Infrastructure............................................................................34
3. Mission, Vision, and Principles for Digital Transformation in Africa................................46
4. Investment Requirements for 2021 and 2030 Digital Infrastructure Targets...............56
5. Policy and Regulatory Frameworks to Enable Digital Transformation...........................68
6. Digital Skills and Local Content Development....................................................................78
7. Targeted Approach for Device Affordability.........................................................................84
8. Roadmap and Action Plan to Achieve Universal, Affordable, and Good Quality
Broadband Access Across Africa............................................................................................92
9. Financing Mechanisms for the Digital Infrastructure Moonshot for Africa.................108
10. Monitoring Progress towards Broadband for All.............................................................. 112
Appendixes.......................................................................................................................... ............116
Figures
Figure 0.1. The World Bank’s Digital Economy for Africa (DE4A) Framework................... 15
Figure 0.2. Investment Needed to Achieve Universal Access to Broadband
Connectivity by 2030................................................................................................ 16
Figure 0.3. Relative Size of Investment Needed by Country for Universal Access by
2030.............................................................................................................................. 17
Figure 0.4. MFD Indicative Distribution of Cost Sharing........................................................ 18
Figure 0.5. Roadmap for Universal Access to Affordable and Good Quality
Broadband...................................................................................................................20
Figure 2.1. Broadband Penetration in African Countries by Technology, 2010-2018..... 35
Figure 2.2. Broadband Infrastructure Value Chains................................................................36
Figure 2.3. Proportion of Population with Access to Electricity, 2017................................43
Figure 4.1. Mobile Penetration in Africa by Country, 2018....................................................60
Figure 4.2. 4G Mobile Broadband Penetration in Africa by Country, 2018......................... 61
Figure 4.3. Investment Needed to Double Broadband Penetration in Africa
by 2021.........................................................................................................................63
Figure 4.4. Relative Size of Investment Needed by Country to Double Broadband
Connectivity by 2021.................................................................................................64
Figure 4.5. Investment Needed to Achieve Universal Access to Broadband
Connectivity................................................................................................................65
Figure 4.6. Relative Size of Investment Needed by Country for Universal Access
by 2030.........................................................................................................................66
Figure 4.7. Expected Broadband Penetration Growth (2018, 2021, 2030)........................ 67
Figure 4.8. Investment Needed to Achieve Universal Access to Connectivity by
Region........................................................................................................................... 67
Figure 7.1. Affordability of Entry-Level Device in Low- and Middle-Income
Countries by Region..................................................................................................86
Figure 8.1. Roadmap for Universal Access to Affordable and Good Quality
Broadband...................................................................................................................94
Figure 8.2. Ghana Investment Fund for Electronic Communications -
Smart Community Architecture............................................................................100
Figure 9.1. MFD Indicative Distribution of Cost Sharing.......................................................111
Figure A.1. Estimating Requirements for the 2021 Target: Model Structure
(Indicative)..................................................................................................................120
Figure A.2. Estimating Requirements for the 2030 Target: Model Structure
(Indicative).................................................................................................................. 121
Tables
Table 1.1. Examples of Digital Infrastructure Initiatives and Programs............................30
Boxes
Box 1.1. The African Union’s Digital Transformation Strategy for Africa .......................26
Box 1.2. The World Bank’s Digital Economy for Africa (DE4A) Framework................... 27
Box 1.3. European Union-African Union Digital Economy Task Force (EU-AU DETF)..29
Box 2.1. ITU Interactive Transmission Map........................................................................... 37
Box 2.2. African Undersea and Terrestrial Fiber Optic Cables..........................................39
Box 2.3. GSMA Mobile Coverage Map................................................................................... 41
Box 2.4. Sustainable Development Goal on Energy (SDG7) and the World Bank
Group............................................................................................................................43
Box 3.1. Mobilizing Finance for Development (MFD).........................................................48
Box 3.2. GSR19 Best Practice Guidelines to Fast-Forward Digital Connectivity
for All.............................................................................................................................49
Box 3.3. Principles for Natural Disasters and Climate Change in the
Telecom Sector........................................................................................................... 51
Box 3.4. The World Bank ’s Core Principles for Digital Infrastructure............................ 53
Box 3.5. Five Principles for the Digital Transformation Strategy for Africa....................54
Box 3.6. Mission, Vision, and Values for ITU’s Strategic Plan 2020-2023...................... 55
Box 4.1. A Multistakeholder Process......................................................................................58
Box 5.1. Digital Public Platforms............................................................................................. 76
Box 5.2. The Impact of Taxation on Affordability................................................................ 77
Box 6.1. Addressing Digital Skills and Local Content.........................................................80
Box 6.2. Closing the Digital Skills Gap for Nigerian Women and Girls........................... 81
Box 6.3. Technology Bootcamp Empowers Young Tanzanian Women.........................82
Box 7.1. KaiOS: Affordable Smart-Feature Phones.............................................................88
Box 8.1. Facebook’s Shared Backhaul Projects...................................................................96
Box 8.2. Reverse Subsidy Auctions as a Mechanism for Widening Rural Access.........98
Box 8.3. Huawei: Innovative Infrastructure Solution to Expand Access to Rural
Areas............................................................................................................................102
Box 8.4. Microsoft’s Airband Initiative..................................................................................102
Box 8.5. Nokia’s Smart City Playbook..................................................................................103
Box 8.6. Innovative Business Models for Expanding Fiber-Optic Networks and
Closing the Access Gaps........................................................................................105
Box 8.7. Intelsat’s Partnership with UNHCR to Bring Internet Access to
Refugees.....................................................................................................................106
Box B.1. ITU’s Smart Village Platform................................................................................... 123
Box B.2. The Digital Transformation Platform and Broadband Investment Program
in the Maghreb Region............................................................................................ 123
Box B.3. Developing a Public-Private Partnership for International Fiber Optic
Connectivity – São Tomé and Príncipe............................................................... 124
Box B.4. OneWeb – Strategy to Connect Remote, Rural Villages and Roadways.....126
Box B.5. KT’s Copper Wire-Based Gigabit Internet Technology Solution....................128
Box B.6. Talia’s Quika Brings HTS Ka Band Services to Remote Locations..................129
Box B.7. The Smart Africa Broadband Strategy Document.............................................129
Box B.8. GSMA’s Mobile Internet Skills Training Toolkit.................................................... 131
Box B.9. KT’s GiGA Island Initiative....................................................................................... 132
Box B.10. ISTIC’s Double Hundred Universities Cooperation Project ............................ 133
Box B.11. WomEng South Africa with One Million STEM Girls Project...........................134
Box B.12. Shared-Value Partnership for Equitable Access to Digital Literacy in Kenya.. 135
Foreword
HIS EXCELLENCY PAUL KAGAME, THE HONORABLE CARLOS SLIM HELÚ,
President, Rwanda Co-Chair, President, Carlos Slim Foundation Co-Chair,
United Nations Broadband Commission for United Nations Broadband Commission for
Sustainable Development Sustainable Development
Dear friends,
Since my appointment as UN Broadband Commissioner in September 2018, the World
Bank Group (WBG) has actively engaged with the Working Group Commissioners and
Focal Points, African Union, governments, the private sector, and the donor community
to promote an ambitious vision to harness digital technology and innovation to
transform the African continent’s economies, societies, and governments. This is
urgent. Africa is the key to reaching our goals of ending extreme poverty by 2030 and
boosting shared prosperity. Our latest Poverty and Shared Prosperity 2018 report found
that in 2015, the most recent year with robust data, global extreme poverty reached 10
percent – the lowest level in recorded history. But the report also showed that extreme
poverty is becoming more concentrated in Sub-Saharan Africa because of the region’s
slower rates of growth, problems caused by conflict and weak institutions, income
inequality and a lack of success in channeling growth into poverty reduction.1 Sub-
Saharan Africa now accounts for most of the world’s poor, and— unlike most of the
rest of the world—the total number of extremely poor people in Sub-Saharan Africa is
increasing – from 278 million in 1990 to 413 million in 2015. In 2015, the continent was
home to 27 of the world’s 28 poorest countries, all with poverty rates above 30 percent,
and the region had more extremely poor people than the rest of the world combined.
Whereas the average poverty rate for other regions was below 13 percent as of 2015, it
stood at about 41 percent in Sub-Saharan Africa. The working-age population in Africa
is expected to increase by some 450 million people between 2015 and 2035. If current
trends continue, less than one quarter will find stable jobs. Over 300 million people will
be unemployed.
The digital agenda fosters economic growth and creation of jobs. Accelerating
broadband connectivity so that every individual, business, and government in Africa
is digitally enabled is a once in a generation chance to disrupt the growth trajectory
and open up new opportunities for economic and social development. According to
econometric studies prepared by the International Telecommunication Union (ITU),
expanding mobile broadband penetration by 10 percent in Africa would yield an
increase of 2.5 percent in GDP per capita. In addition, it suggests that a 10 per cent
1. 1. The World Bank. Poverty and Shared Prosperity 2018: Piecing Together the Poverty Puzzle. Despite faster growth in some
Sub-Saharan African economies, such as Burkina Faso and Rwanda, the region has also struggled to improve shared prosperity.
The bottom 40 in the dozen Sub-Saharan African countries saw their consumption (or income) rise by an average of 1.8
percent per year in 2010–15 (slightly below the global average of 1.9 percent per year). Furthermore, the consumption (or
income) level of the bottom 40 shrank in a third of those 12 countries.
8 Broadband Commission Working Group on Broadband for All
drop in mobile broadband prices will boost adoption of mobile broadband technology
by more than 3.1 per cent.2 Broadband connectivity also creates new jobs through
many avenues – directly through the demand for labor from technology-based
companies and indirectly through demand from the wider ecosystem that support
technology-based enterprises. And innovation has always created jobs in new sectors
that did not exist before (for example, jobs in innovation hubs and jobs in professions
that require access to data). Universal, affordable and good quality broadband
underpins the digital economy and its rapidly expanding businesses, creating millions of
jobs in these new sectors. The global impact of an increase in internet penetration on
employment have been analyzed by the ITU, Deloitte as well as other institutions and
academic institutions. Expanding internet growth to a much higher level (75 percent
penetration) could lead to a nine percent increase of job creation compared with what
might have existed with current levels of penetration.
We must ensure that the promise of digital transformation leaves no one behind.
Digitization is expanding access to basic needs and services. Several of the Sustainable
Development Goals (SDG), such as universal identification, efficient government
services, and financial inclusion and job creation require the intensive use of
information and communication technologies (ICT). Digital ID projects in Côte d’Ivoire
and Guinea kickstarted the West Africa regional identification program with more
than $300 million from the West Africa Unique Identification for Regional Integration
and Inclusion (WURI) program. A new generation of projects is helping transform
selected sectors through e-health, e-agriculture, digital transport, and more, promoting
effective, transparent, tech-enabled public service delivery, evidence-based policy
and public management, harnessing the data revolution. Underlying these goals is
SDG target 9c: to significantly increase access to ICTs and strive to provide universal
and affordable access to the internet in least developed countries (LDCs) by 2020. To
achieve this, we must take a global approach to digital transformation, and at the same
time step up our commitment to connect the 49 percent of the population in the
region that are still excluded from ICT services and are most at risk of being left behind.
Significant progress has been made and much more can be done toward making
services more affordable and increasing adoption.
We call for a coalition to rally around the African Union for an ambitious digital
transformation agenda. I am very pleased that the World Bank is a member of the
UN Broadband Commission, and is working closely with the African Union, regional
economic communities and African governments to support a new level of ambition
for digital transformation. Under the digital economy for Africa initiative (DE4A), which
has sometimes been called a “digital moonshot for Africa,” the WBG is supporting the
African Union Digital Transformation Strategy. Prepared under the leadership of the
African Union Commission (AUC), the Digital Transformation Strategy for Africa sets
out a bold vision to ensure that every African individual, business, and government is
digitally enabled by 2030. The goal is to drive the digital transformation of Africa and
ensure its full participation in the global digital economy.
For dynamic, inclusive, and safe digital economies to emerge, African countries will
2. ITU, Economic contribution of broadband, digitization and ICT regulation: Econometric modelling for Africa, https://www.itu.
int/dms_pub/itu-d/opb/pref/D-PREF-EF.BDT_AFR-2019-PDF-E.pdf).
A “Digital Infrastructure Moonshot” for Africa 9
need to follow a holistic approach to building a dynamic digital economy on top of
strong analog foundations of good governance, enabling regulations, accountable
institutions, and relevant skills. Based on global experience and learning, World Bank
and IFC have launched a joint development framework to support continued efforts
towards inclusive and sustainable digital economies. This comprehensive agenda
focuses on strengthening the five foundations needed for the digital economy to
function. In this regard, the digital economy will further require broadband networks
to be universally available, affordable, of good quality and accessible alongside
data centers/cloud services (Digital Infrastructure Pillar); digital platforms that allow
governments, firms, and individuals to access a wide range of products and services
and conduct secure online transactions, underpinned by unique, authenticated digital
identification for an inclusive digital economy (Digital Platforms pillar); the ability for
people, businesses, and governments to pay, transact, and manage their financial
wellbeing—all digitally—and for people and businesses to access affordable/tailored
digital financial services including credit, insurance, deposit, and pensions (Digital
Financial Services Pillar). When new or existing businesses are able to transact online,
secure digital data on markets and consumers, and expand through digitized value
chains and e-commerce, then digital economies energize growth, offer innovative
products and solutions, and create new forms of work (Digital Entrepreneurship
Pillar). Finally, ensuring the widespread availability of digital skills allows individuals and
business to harness the opportunities and guard against the risks of the digital economy
(Digital Skills Pillar). These five pillars are critical foundations of the digital economy.
In addition to the five foundational pillars, there are several crosscutting elements that
are also key to achieve a vibrant, inclusive and safe digital transformation. The digital
economy can provide a new growth model to create economic growth, jobs, new
products and services, poverty reduction, and enhance the region’s competitiveness.
A digital economy brings digital transformation to the traditional, or “analog,” sectors
of an economy, such as healthcare, education, agriculture, trade and banking, among
others. However, it can also bring risks and vulnerabilities which are being exploited
by cybercriminals. Misinformation, harassment of vulnerable groups, and closing the
gap between connected and unconnected are real challenges for policy makers.
Therefore, governments must be able to maximize benefits, while actively minimizing
the risks of the digital economy, and this will require an appropriate regulatory and
policy environment. In relation to cybersecurity and data protection, relevant legislation
and cybersecurity measures have to be addressed to ensure a safe digital economy.
Competition is also an essential component to ensure an efficient digital transformation
strategy - governments should encourage healthy competition, increase productivity,
and achieve scale. Furthermore, women are a critical component of any digital
transformation in Africa. However, restrictive gender norms exist in different regions,
as is the case in Sub-Saharan Africa, that limit women’s access to and usage of digital
technologies, further excluding them from opportunity.3 In order to address this, a
rigorous research approach must be carried out to inform policy, implementation
strategy and evaluation metrics, ensuring that African women form a key part of the
digital economy.
The digital revolution is well underway in Africa and offers a leapfrogging opportunity
in many foundational areas of the digital economy to leverage global and regional
initiatives. A digital transformation promises to be a positive multiplier for other
socioeconomic trends, bringing them to scale to achieve a deeper and faster
transformation. Rising mobile phone penetration, improving broadband connectivity
and accelerating internet speeds, and the widespread adoption of mobile money
3. Gender norms differ greatly between regions, countries and even subregions, however, gender gaps in mobile ownership and
mobile internet use are often wider where mobile penetration is lower, as is the case in Sub-Saharan African.
10 Broadband Commission Working Group on Broadband for All
across Africa are all changing the way the continent communicates, collaborates,
and transacts. In turn, this will unleash new opportunities for people, businesses, and
governments in a virtuous circle.
In particular, there are significant opportunities to be gained for the region in the
agriculture sector, where the target for 2030 is for every African farmer, agribusiness,
and ministry of agriculture to be digitally enabled. E-agriculture will be critical to
promote efficiency and sustainable production, where land and soil information could
be readily available in public databases and irrigation systems could be monitored
digitally, to optimize water use. Many other sectors of the economy will also benefit.
As an example, universal access to affordable high-speed broadband communications
technology will assist health systems to provide higher quality and more patient-
focused care, especially in rural and remote areas, by giving health workers access to
tools that allow them to do more and draw on resources previously only available in
major urban centers.
I applaud the efforts of the African continent to take this agenda to the next level,
with the support of Heads of States. I also count on all of us, the friends of digital
transformation, to work together in a coordinated manner. It will be critical that we
work closely with the African Union Commission (AUC), with regional economic
communities, and governments, with development partners, and with representatives
of the private sector to create a single coordination platform to support the efforts the
continent is making. You can count on the World Bank Group’s full participation in this
effort. You can also count on our full commitment to the digital transformation agenda
in Africa, leveraging all our instruments, our knowledge, and our convening power.
In this Working Group report under the Broadband Commission’s auspices, we
propose a roadmap and action plan for universal, affordable and good quality
broadband connectivity in Africa, combining investment needs, sector reforms, and
demand stimulation required to advance to a single digital market on the continent.
Underpinning the successful implementation of the roadmap is the World Bank Group’s
Mobilizing Finance for Development (MFD) approach to systematically leverage
all sources of finance, expertise, and solutions to support developing countries’
sustainable growth. In this roadmap and action plan. I am calling for a global coalition
to achieve Africa’s digital transformation so that by 2030 every individual, business, and
government in Africa is digitally enabled and ready to thrive in the digital economy. The
roadmap may be found in chapter 8.
The present report has been created collaboratively, over several meetings, drawing
on contributions and insights from the participants of the Broadband Commission
for Sustainable Development’s Working Group on Broadband for All: A Digital
Infrastructure Moonshot for Africa. I would like to give special thanks to the members
of the Working Group and other active participants who agreed to share so much of
their time, wisdom, and experiences. You will find a description of the multistakeholder
consultation process in appendix C and a list of those members of the Working Group
under the Acknowledgments section of the report.
KRISTALINA GEORGIEVA
Chief Executive Officer, The World Bank
IBRD/IDA, Washington, D.C.
Commissioner, United Nations Broadband Commission for Sustainable Development
Chair, Working Group on Broadband for All: A Digital Infrastructure Moonshot for Africa
A “Digital Infrastructure Moonshot” for Africa 11
Acknowledgements
The present report has been created collaboratively, drawing on contributions
and insights from the participants of the Broadband Commission for Sustainable
Development’s Working Group on Broadband for All: A Digital Infrastructure Moonshot
for Africa. The Working Group was chaired by Ms. Kristalina Georgieva, CEO of the
World Bank. The World Bank has coordinated the production of the document under
the guidance of Mr. Makhtar Diop, Vice President of the Infrastructure Practice Group.
The report benefitted from the leadership of Boutheina Guermazi, Director of the
Digital Development Global Practice (GP) and general supervision of Michel Rogy,
Practice Manager of Digital Development for Africa and the Middle East of the World
Bank. The World Bank core team comprised of Doyle Gallegos, Lucine Munkyung Park,
Ane Morales Elorriaga, Roku Fukui, Tim Kelly, Je Myung Ryu, and Natalija Gelvanovska.
The report benefitted from the peer review of Carlo Maria Rossotto, Xavier Stephane
Decoster, Ariana Batori and Anna Polomska, and technical reviews from Deborah L.
Wetzel,and Sajitha Bashir.
The Alliance for Affordable Internet (A4AI) provided overall advice, analysis, and drafting
support, with special acknowledgement to Sonia Jorge (Executive Director), Maiko
Nakagaki, Dhanaraj Thakur, David Townsend, Eleanor Sarpong, and Guy Zibi (Xalam
Analytics). We benefitted from valuable inputs from the members of the UN Broadband
Commission’s Working Group on Broadband for All: A Digital Infrastructure Moonshot
for Africa as well as the members of the World Bank Consultation Group on the Digital
Infrastructure for Africa and the Middle East. The process of completing the report
was facilitated by Anna Polomska of the Broadband Commission Secretariat at the
International Telecommunication Union (ITU). Support for processing of the report and
its media outreach was received from Anne Senges and ITU staff.
The work was partially funded by contributions from the World Bank’s Digital
Development Partnership (DDP) Multi-Donor Trust Fund and its members. The support
is gratefully acknowledged.
The Broadband Commissioners, the Commissioners’ Focal Points, and, in particular, the
members of the Working Group provided invaluable contributions:
• Adam Lane, Huawei
• Adrian Lovett, Web Foundation
• Amir Dossal, Global Partnerships • Carlos Manuel Jarque Uribe,
Forum America Movil
• Andrew Rugege, ITU • Cheikh Bedda, African Union
Commission (AUC)
• Anna Polomska, ITU
• Annette M. Purves, Intelsat • Chris Exelby, GSMA
• Arnaud Senn, European Commission • Christopher Hemmerlein, Facebook
• Belinda Exelby, GSMA • Claire Scharwatt, GSMA
• Bocar Ba, SAMENA • Dato’ Ir. Lee Yee Cheong,
ISTIC Malaysia
Telecommunication Council
• Brahim Ghribi, Nokia • David Geary, Digicel
• Byungki Oh, Korea Telecom (KT) • Desire Karyabwite, ITU
12 Broadband Commission Working Group on Broadband for All
• Donna Murphy, Inmarsat • Mats Granryd, GSMA
• Doreen Bogdan Martin, ITU • Mehdi Khouili, AUC
• Esperanza Magpantay, ITU • Minerva Novero-Belec, UNDP
• Estelle Schnitzler, EUTELSAT IGO • Miniva Chibuye, UN-OHRLLS
• Fargani Tambeayuk, Facebook • Mophethe Moletsane, MTN
• Fekitamoeloa Katoa ‘Utoikamanu, UN- • Oumar Diallo, UN-OHRLLS
OHRLLS
• Nancy Sundberg, ITU
• Genaro Cruz, GSMA • Patrick Masambu, International
• Ilbum Chun, KT Telecommunications Satellite
Organization (ITSO)
• Imme Philbeck, SAMENA
Telecommunication Council • Piotr Dmochowski-Lipski, EUTELSAT
IGO
• Istvan Bozsoki, ITU
• James Howe, ITC • Rajeev Suri, Nokia
• Jessie Kim, KT • Renata Brazil David, ITSO
• Jo Hironaka, UNESCO ISTIC • Rob Shuter, MTN
• Jose Manuel Toscano, Intelsat • Robert Pepper, Facebook
• Kalvin Bahia, GSMA • Rupert Pearce, Inmarsat
• Lacina Koné, Smart Africa • Sofie Maddens, ITU
• Lars Erik Forsberg, European • Sonia Jorge, A4AI/Web Foundation
Commission • Speranza Ndege, Kenyatta University
• Lauren Dawes, GSMA • Steve Spengler, Intelsat
• Maciej Piotrowski, Office of Electronic • Sungwon Min, KT
Communications (UKE)
• Teboho Malie, MTN
• Mara Bubberman, European • Thor Vertmann, European
Commission
Commission
• Marcelo D’Agostino, • Tinyiko Ngobeni, Dpt of Telecoms and
University of Milan
Postal Services in South Africa
• Marcin Cichy, UKE • Trudy Cooke, Inmarsat
• Marco Franzosi, Novartis Foundation • Wojciech Berezowski, UKE
• Martin Schaaper, ITU • Youlia Lozanova, ITU
More information about the
Working Group on Broadband for All:
A Digital Infrastructure Moonshot for Africa is available at:
https://www.broadbandcommission.org/workinggroups/Pages/WG2-2018.aspx
A “Digital Infrastructure Moonshot” for Africa 13
Executive Summary
Digital technologies and the digital The African Union Commission
economy will have a transformative (AUC) set up a taskforce and led a
impact on development. Today’s multistakeholder process to develop the
economy is being driven by digital Digital Transformation Strategy for Africa,
transformation across all sectors and a vision to harness digital technologies
digital technology is increasingly at the and innovation to transform Africa’s
center of people’s daily lives. Indeed, economies, societies, and governments
several Sustainable Development to generate new economic growth,
Goals (SDGs) require information and job creation, and poverty reduction.
communication technologies (ICTs) as As a complement to AUC’s vision, the
an enabler, notably to achieve universal World Bank Group (WBG) has also
identification, more efficient delivery of initiated a regional program, the Digital
government services, financial inclusion, Economy for Africa (DE4A) initiative,
and job creation. Furthermore, digital with five corresponding foundational
transformation will impact key sectors of pillars – digital infrastructure, digital
the economy, such as health, agriculture, financial services, digital platforms, digital
education and trade, among others, entrepreneurship, and digital skills (see
and will support the needs of people, figure 0.1) – with the objective to digitally
governments, and the private sector enable every African individual, business,
resulting in an essential tool for people’s and government by 2030, while targeting
access to rights and services as well as intermediate priority results by 2021.
better governance. Underlying these
goals is SDG Target 9.c: to significantly While these initiatives set clear goals
increase access to information and and address important issues toward
communications technology and strive to universal affordable and good quality
provide universal and affordable access to broadband access, there has been
the internet in least developed countries less discussion about the investment
(LDCs) by 2020. While some progress has required and financing needs to meet
been made in this regard, there is a danger the targets, modalities for financing the
that in Africa, where many of the LDCs are agenda, and how to operationalize the
located, this target will be missed, both in framework and principles. To this end the
terms of access and affordability. Home to Working Group on Broadband for All:
some 1.2 billion inhabitants, the continent A Digital Moonshot Infrastructure for
will need to act quickly and boldly, or risk Africa was formed as a multistakeholder
being left behind as the rise of digital consultation group to engage key ICT
technologies and the digital economy industry partners, estimate the investment
offers a once in a generation chance to needs, and prepare a roadmap to help
take advantage of digital transformation countries and development actors
to accelerate the achievements of the coordinate, accelerate and prioritize
SDGs. their efforts to help reach the SDGs by
improving digital infrastructure in Africa.
Achieving universal affordable and good This report summarizes the findings and
quality broadband access across the recommendations from the Working
whole of Africa requires a sustained and Group.
committed effort from all stakeholders.
4. The AU process is codified in AU rules for consultations ahead of approval by Heads of States.
14 Broadband Commission Working Group on Broadband for All
Figure 0.1. The World Bank’s Digital Economy for Africa (DE4A) Framework
Principles
Taking an ecosystem approach that looks at supply and demand
Comprehensive and defies a narrow silo approach in defining the requisite
elements and foundations for digital economy
Aiming at a very different scale of ambition
Transformative
beyond incremental ‘islands’ of success
Creating equal access to opportunities and dealing with risks of
Inclusive
exclusion
Promoting homegrown digital content and solutions while
Homegrown embracing what is good and relevant from outside the
continent
Ensuring collaboration and coordination among countries,
Collaborative
among sectors, and among public and private players
Digital Economy Foundations
Applications likely to develop once the
foundation elements are in place:
• GOVTECH applications
USAGE
• E-COMMERCE
• OPEN BANKING: non-banks offer tailored services
• DATA LOCKERS to access selected services
DIGITAL
DIGITAL SKILLS
AND LITERACY
ENTREPRENEURSHIP
PLATFORMS
DIGITAL FINANCIAL
DIGITAL
SERVICES
DIGITAL
INFRASTRUCTURE
Cross cutting areas:
• Strong regulatory frameworks to foster competition and MFD agenda
• Manage risks: data privacy, cyber security
• Opportunity to empower women and apply to FCV
A “Digital Infrastructure Moonshot” for Africa 15
Investment Requirements for 2021 and
2030 Digital Infrastructure Targets
The World Bank has developed two goals Nearly 1.1 billion new unique users
to ensure the initiative is fully realized and must be connected to achieve
the strategy stays on track: a short-term universal, affordable, and good quality
progress milestone to be achieved by broadband internet access by 2030,
2021 – to double broadband connectivity and an estimated additional $100
penetration in Africa by 2021 from 2016 billion would be needed to reach this
penetration levels, and a long-term target goal over the next decade (see figure
to be achieved by 2030 – to achieve 0.2). This is unquestionably a significant
universal affordable and good quality infrastructure undertaking, requiring
broadband access in Africa by 2030. the deployment of nearly 250,000 new
4G base stations and at least 250,000
Using a variety of data sources, including kilometers of fiber across the region. It
consultations with key ICT industry also requires rolling out satellites, Wi-Fi
stakeholders, the following key findings based solutions, and other innovations
were concluded. to reach an estimated population of
nearly 100 million that live in remote
To double broadband connectivity by rural areas that are currently out of reach
2021, nearly 220 million new people of traditional cellular mobile networks.
must come online and an estimated Another required investment is building
$9 billion in investment is required. the user skills and local content
Doubling broadband penetration also foundations to ensure that the deployed
implies a significant uptake of penetration infrastructure is used adequately, in a
in areas already covered by broadband manner that would support its long-
networks, through legal and policy term viability. Investment in developing
reforms aimed at increasing accessibility, and implementing adequate policy
awareness, affordability, relevance, safety, and regulation frameworks will also be
and security as well as the level of digital required to create market conditions
skills through capacity building programs. that foster technology deployment, the
Specific attention should be devoted to development of a broader technology
countries showing low penetration level, ecosystem, and overall broadband
of which many are in a fragile situation5. service affordability.
Figure 0.2. Investment Needed to Achieve Universal Access to Broadband
Connectivity by 2030
$100 ICT Skills & Content
~$18.0bn
$80
Policy & Regulation Costs
$60 ~$2.4bn
$40 Network Operation & Maintenance
~$53bn
$20
Infrastructure CapEx
~$29.5bn
$0
5. https://www.worldbank.org/en/topic/fragilityconflictviolence/brief/harmonized-list-of-fragile-situations
16 Broadband Commission Working Group on Broadband for All
Figure 0.3. Relative Size of Investment Needed by Country for Universal
Access by 2030
NIGER ALGERIA MOROCCO
UGANDA
MOZAMBIQUE GHANA BURKINA FASO CAMEROON
ETHIOPIA EGYPT
SOUTH AFRICA
ZAMBIA SOUTH SUDAN ZIMBABWE
CHAD
IVORY COAST
BURUNDI BENIN TUNISIA
TANZANIA
RWANDA
SIERRA
LEONE
SUDAN
SENEGAL
MADAGASCAR
SOMALIA
TOGO
NIGERIA CONGO, DEM. REP. KENYA ANGOLA MALAWI MALI GUINEA LIBYA
No single actor acting alone will be able All participating organizations must
to meet the 2030 target and carry the collaborate to ensure that their resources
burden of a $100 billion investment are used in the most effective way.
funding requirement. Mobilizing Finance Partnership among the financing partners
for Development (MFD) is the World as well as other implementing partners
Bank Group’s approach to systematically is more likely to result in effective
leverage all sources of finance, expertise, investments, and ultimately, greater
and solutions to support developing impact. Table 0.4 below provides an
countries’ sustainable growth. Focus of indicative distribution of cost sharing
efforts are centered in three main areas: between the public and the private for
(i) strengthening investment capacityand infrastructure capital expenditure(CapEx)
policy frameworks at national and and network operations and maintenance
subnational levels; (ii) enhancing private (O&M). Another significant aspect of
sector involvement and prioritizing the MFD approach demonstrates that
commercial sources of financing; and (iii) public investment participants (e.g. MDBs,
enhancing the catalytic role of Multilateral bilaterals and other development aid
Development Banks (MDBs). By scaling agencies) will channel investments in
up private-finance mobilization, it aims areas that the private sector sees as non-
to support countries’ development goals commercially viable.
in ways that complement and reinforce
public resources.
A “Digital Infrastructure Moonshot” for Africa 17
Figure 0.4. MFD Indicative Distribution of Cost Sharing
Urban Population Rural Population Remote Rural 1.2
New Users 550 million New Users 550 million New Users 100 million BILLION
(46%) (46%) (8%) NEW USERS
Funding Requirements Funding Requirements $83
$63 billion (75%) $20 billion (25%) US$
BILLION
PRIVATE PUBLIC
Infrastructure CapEx Infrastructure CapEx $30
$28 billion (93%) $2 billion (7%) US$
BILLION
Network O&M Network O&M $53
$35 billion (66%) $18 billion (34%) US$
BILLION
Note: New users in remote rural area are estimated at ~100m (~15%-20% of the rural population).
This represents the low-density areas out of reach of traditional mobile networks.
Policy and Regulatory implement and enforce legal and
policy mandates, and govern overall
Frameworks to Enable broadband/ICT sector performance.
Digital Transformation • Public Funding, Investment: Direct
public funding of broadband projects
Public policies and government practices through various vehicles, including
can influence the development and government subsidies and public
impact of universal, affordable and good financing through public-private
quality broadband connectivity in different partnerships (PPP) arrangements.
ways. While the best policy option for any
given country will depend on its unique • Programs, Initiatives: Government
context, certain core principles and sponsored or supported programs
established good practices have proven to promote broadband awareness,
effective in accelerating broadband adoption, and use, including education
growth and adoption across different and training.
countries. The following are key features
of broadband policy options: • Government Adoption, Procurement:
The role of government as a user
• National ICT Policies and Digital of broadband in its operations at all
Strategies: The basic foundation levels, including network connectivity,
for establishment and promotion of procurement of equipment and
broadband, including national digital services, and aggregation of
strategies (holistic approaches to government demand and adoption
digital development and planning) across agencies.
and policy principles, directives and
targets for sector-specific national ICT • Taxation, Fiscal Policy: Tax, tariffs,
strategy as well as general principles fees, and other fiscal policies that
for competition policy. affect costs and incentives for
broadband service and equipment
• Laws, Legislation, and Regulation: suppliers, investors, entrepreneurs,
Regulatory agencies, instruments, and customers.
rules, decisions, and oversight, which
18 Broadband Commission Working Group on Broadband for All
Each of the above forms of policy
intervention can influence one or
Device Affordability
more aspects of the overall broadband Affordability remains one of the main
ecosystem. Furthermore, governments challenges in addressing the global
should design coordinated national digital divide. The relatively high costs of
broadband strategies for digital getting online also include the costs of
transformation that cover technological purchasing a mobile device. Sub-Saharan
advancements and increased demands Africa faces the greatest challenge in
to leapfrog towards more integrated terms of the affordability of an entry-
information systems and services. level mobile device. The combination of
expensive entry-level mobile data plans
and entry-level devices keep the majority
of people in the region offline.
Digital Skills and Local
Content Development As such, to achieve universal, affordable
and good quality broadband access on the
Bringing over a billion new users online continent, improving device affordability
on the continent requires the global must be a priority. To lower device costs,
community to invest in digital skills and public and private stakeholders should
local content development – in particular, explore the following strategies:
in local language – as part of the effort to
increase connectivity and prepare people • Increase device affordability and
as active digital citizens. Given that most adoption through targeted public
of the population still offline are from policies and market measures:
marginalized groups, including women, governments should explore programs
the poor, and rural communities, there is that subsidize mobile devices, such
a need to invest in developing basic digital as through its universal service and
skills and support a local digital ecosystem access funds (USAF). Governments
to increase relevant local content and should also work with the private
knowledge that support development sector and financial institutions
opportunities, including for women to facilitate access to finance and
and girls. payment plans for mobile devices, as
well as assess the impact of taxation
Investment must come from all on devices. Governments should
stakeholders to prioritize the necessary also work with the private sector
policies and programs to develop digitally and financial institutions to facilitate
ready populations, for example, national access to finance and payment plans
governments sponsoring ICT educational for mobile devices, as well as assess
development programs for worker the impact of taxation on devices.
retraining, multilateral development Continent-wide adoption of the ITA is
organizations investing in education critical to achieve this.6
programs for vocational schools, civil
society organizations implementing • Support business models offering
digital skills education initiatives, and low-cost devices on the market:
the private sector investing in local governments can support policies that
content development. Digital skills and promote local innovation and research
content development programs should and development for internet-enabled
incorporate public- and private-led devices such as handsets, as well as
interventions, as well as those targeted at prioritize support through government
women and girls, and rural communities. investment agencies for ventures
(between local and foreign firms or
PPPs) that seek to offer low-cost
devices to the market.
6. 20 years of the Information and Technology Agreement. Boosting trade, innovation and digital connectivity. https://www.wto.
org/english/res_e/publications_e/ita20years2017_e.htm
A “Digital Infrastructure Moonshot” for Africa 19
• Engage with the private sector examine the challenges posed by,
and other partners to lower and effects of, royalty stacking in the
manufacturing and distribution smartphone industry since royalties
costs for devices: The private sector, largely contribute to the high price
government, and academia should of devices.
Roadmap and Action Plan
The main features of the broadband development roadmap by 2030 for any country
include the following sequence of key objectives.
Figure 0.5. Roadmap for Universal Access to Affordable and Good Quality
Broadband
Ensure that the commercial broadband market is open and
1 structurally prepared for competitive private investment.
Reduce non-economic costs and
2 risks of market entry and investment.
Provide public/donor funding support for larger, high-
3 cost infrastructure investments to reduce risk and
increase commercial viability.
Expand the market through government procurement
4 and implementation of broadband based digital services,
networks, and facilities.
Provide direct funding support for extending affordable
broadband access to commercially challenging rural and
5 remote areas, to women, and low-income users under a
Mobilizing Finance for Development approach.
Increase ICT market commercial attractiveness through
6 demand stimulation and affordability initiatives.
Promote long-term sustainability by ensuring that
7 appropriate technical skills to operate and maintain digital
infrastructure are increasingly available on the continent.
In establishing its own policy, funding, the relevant objectives. Specific short-
and project priorities, each government and long-term action plans for each of
should review the extent to which it has the objectives are explained thoroughly
addressed each of these elements, and in chapter 8.
what its next actions should be to achieve
20 Broadband Commission Working Group on Broadband for All
Financing and
Conclusion
With an overall estimate of $109 billion
needed to achieve the universal access to
affordable and good quality broadband,
drawing private investment in broadband
infrastructure will be key, together with
other funding sources. In this regard,
countries should enable the MFD
approach by opening up the markets
to attract new participants, innovative
business models and technologies,
drawing much needed investment capital.
Stakeholders must also undertake
investments for systemic changes needed
to reach the 2030 goal, including in basic
digital skills to use broadband, policy
and regulatory reform, device financing
mechanisms as well as in appropriate
technical skills to operate and maintain
digital infrastructure.
No single actor acting alone will be
able to meet the 2030 target and help
achieve the SDGs. All stakeholders
must come together and collaborate
to realize universally affordable access
to the internet for all Africans. This
includes: the African Union and regional
economic communities; African
governments and respective public
investment agencies; sector regulators;
multilateral development banks and
regional development banks; the United
Nations and other development agencies;
the private sector (both national and
foreign); and civil society groups and
nongovernmental organizations.
A “Digital Infrastructure Moonshot” for Africa 21
Abbreviations
A4AI Alliance for Affordable Internet
ADI Affordability Driver Index
APC Association of Progressive Communications
ARPU Average revenue per user
AU African Union
AUC African Union Commission
BTS Base transceiver station
CapEx Capital expenditure
CIPESA Collaboration on International ICT Policy in East and Southern Africa
DE4A Digital Economy for Africa
EDGE Enhanced Data rates for GSM Evolution
EU European Union
FCV Fragility, Conflict and Violence
GB Gigabyte
GDP Gross domestic product
GPRS General Packet Radio Service
GSMA GSM Association
IBRD International Bank for Reconstruction and Development
ICTs Information and communication technologies
IDA International Development Association
IFC International Finance Corporation
ISP Internet service provider
ITA Information and Technology Agreement
ITU International Telecommunication Union
22 Broadband Commission Working Group on Broadband for All
LDCs Least developed countries
Mbps Megabits per second
MDB Multilateral development bank
MFD Mobilizing Finance for Development
MIGA Multilateral Investment Guarantee Agency
OECD Organisation for Economic Co-operation and Development
OpEx Operational expenditure
OS Operating system
PPP Public-private partnership
QoS Quality of service
SDGs Sustainable Development Goals
SSA Sub-Saharan Africa
UNESCO United Nations Educational, Scientific and Cultural Organization
UNHCR United Nations High Commissioner for Refugees
USAF Universal Service and Access Fund
USAID United States Agency for International Development
VAT Value added tax
WBG World Bank Group
WEF World Economic Forum
3G Third-generation mobile telecommunications technology
4G Fourth-generation mobile telecommunications technology
5G Fifth-generation mobile telecommunications technology
All dollar amounts are U.S. dollars unless otherwise indicated
A “Digital Infrastructure Moonshot” for Africa 23
1
Introduction
24 Broadband Commission Working Group on Broadband for All
The transformative impacts of digital While significant progress has been made
technologies and the digital economy on in this regard, there is a danger that in
development has been widely agreed. Africa, where many of the LDCs are
Today’s economies are being driven by located, this target will be missed, in terms
digital transformation across all sectors of both access and affordability. In Africa,
and digital technology is increasingly at mobile cellular subscriber penetration
the center of people’s daily lives. As such, is only 76 percent, households with
technology is redefining how economic internet access at home 22 percent,
activities occur across countries, paving individuals using the internet 24.4 percent
the way towards digital economies, at – as opposed to 107 percent, 57.8
national, regional, and global levels. percent, and 51.2 percent, respectively,
Therefore, a well-functioning digital globally.7 Moreover, according to the
economy can help achieve faster State of Broadband 2018 report, African
economic growth, offer innovative countries on average spend about 1.1
products and services, create jobs and percent of GDP on investment in digital
export revenue, and achieve greater transformation (including internet
international competitiveness. infrastructure and networks), while
developed countries spend 3.2 percent
In this regard, the 2030 Agenda for of GDP. This means that, not only have
Sustainable Development highlights some countries and regions already
the significance of ICTs in the accelerated ahead, but also the gap in
achievement of SDGs and recognizes internet availability between developed
that, “The spread of information and and developing countries may effectively
communication technology and global grow larger every year. Nevertheless,
interconnectedness has great potential Africa cannot afford to think small nor
to accelerate human progress, to act slowly. Home to some 1.2 billion
bridge the digital divide and to develop inhabitants, the continent will need to
knowledge societies.” All three pillars of act quickly and boldly, or risk being left
sustainable development – economic behind as the rise of digital technologies
development, social inclusion, and and the digital economy offers a once
environmental protection – need ICTs in a generation chance to disrupt this
as catalysts and several SDG targets trajectory.
require the intensive use of ICTs, notably
in achieving universal identification, Recognizing the significance of the
more efficient delivery of government continent’s leadership to prioritize
services, financial inclusion, and job and accelerate digital transformation,
creation. Underlying these goals is target several continent-wide initiatives have
9.c, to “significantly increase access been initiated to support the digital
to information and communications transformation of the continent.
technology and strive to provide The African Union Commission
universal and affordable access to the (AUC) set up a taskforce and led a
internet in the least developed countries multistakeholder process to develop
(LDCs) by 2020.” the Digital Transformation Strategy for
Africa which sets out a vision to harness
7. ITU. https://www.itu.int/en/ITU-D/Statistics/Documents/statistics/2018/ITU_Key_2005-2018_ICT_data_with%20LDCs_
rev27Nov2018.xls
A “Digital Infrastructure Moonshot” for Africa 25
digital technologies and innovation to (see box 1.2). In addition, the European
transform Africa’s economies, societies, Union-African Union Digital Economy
and governments to generate new Task Force (EU-AU DETF) was formed to
economic growth, job creation, and guide the EU and AU when prioritizing
poverty reduction (see box 1.1). The World actions for cooperation towards African
Bank Group (WBG) has also initiated a digital transformation and provides
regional program, the Digital Economy recommendations around four pillars (see
for Africa (DE4A) initiative, in support of box 1.3): access to affordable broadband
the AUC’s vision with five corresponding connectivity and digital infrastructure;
foundational pillars – digital infrastructure, digital skills; digital entrepreneurship;
digital financial services, digital platforms, e-services (fintech, e-government,
digital entrepreneurship, and digital skills e-commerce, and e-health).
Box 1.1. The African Union’s Digital
Transformation Strategy for Africa
The African Union (AU) is taking the digital transformation agenda seriously at
the highest level. The African Union Commission (AUC), under the auspices
of Commissioner Dr. Amani Abou-Zeid, who is also a Commissioner for the
Broadband Commission for Sustainable Development, is preparing a Digital
Transformation Strategy for Africa. The strategy document brings together
various pillars of the digital economy, including digital infrastructure, enabling
environment, policy and regulation, digital platforms, digital financial services,
digital skills, human capacity, digital innovation and entrepreneurship, as well
as initiatives in key vertical sectors such as government, education, health,
agriculture, industry, trade, and financial services. The strategy, which
includes a roadmap and action plan for implementation, is expected to be
adopted by the AU at its summit in 2020.
Once adopted, the Digital Transformation Strategy for Africa will be implemented
at national, subregional, regional, and global levels, with key institutions
playing specific and complementary roles in the institutional framework for
implementation. While AUC will provide a coordination mechanism to facilitate
the implementation of the strategy at the regional level, to provide strategic
guidance, to seek support from development partners and to ensure coherence
with the operationalization of the Africa Vision 2030, each member state will
operationalize the strategy by establishing national strategies and programs
to promote the digital economy. Regional economic communities (RECs),
which make up the building blocks of the African Union, will be called upon to
establish subregional strategies and programs to promote the digital economy.
International organizations (IOs) and development partners (DPs), including
the World Bank Group, the African Development Bank, the International
Telecommunication Union (ITU), the European Union and other regional
development banks and financial institutions, would support this process by
providing technical and financial resources to implement this strategy. This also
requires all African Union member states to mobilize financial and technical
resources to support the effective implementation of this strategy.
26 Broadband Commission Working Group on Broadband for All
Box 1.2. The World Bank’s Digital Economy
for Africa (DE4A) Framework
Principles
Taking an ecosystem approach that looks at supply and
Comprehensive demand and defies a narrow silo approach in defining the
requisite elements and foundations for digital economy
Aiming at a very different scale of ambition
Transformative
beyond incremental ‘islands’ of success
Creating equal access to opportunities and dealing with
Inclusive
risks of exclusion
Promoting homegrown digital content and solutions while
Homegrown embracing what is good and relevant from outside the
continent
Ensuring collaboration and coordination among countries,
Collaborative
among sectors, and among public and private players
DIGITAL ECONOMY FOUNDATIONS
Applications likely to develop once the foundation
elements are in place:
• GOVTECH applications USAGE
• E-COMMERCE
• OPEN BANKING: non-banks offer tailored services
• DATA LOCKERS to access selected services
DIGITAL
DIGITAL SKILLS
AND LITERACY
ENTREPRENEURSHIP
PLATFORMS
DIGITAL FINANCIAL
DIGITAL
SERVICES
DIGITAL
INFRASTRUCTURE
Cross cutting areas:
• Strong regulatory frameworks to foster competition and MFD agenda
• Manage risks: data privacy, cyber security
• Opportunity to empower women and apply to FCV
A “Digital Infrastructure Moonshot” for Africa 27
The Digital Economy for Africa (DE4A) iniative is an integrated regional
program, aligned with the five corporate priorities, that also engages external
partnerships. The objective is to digitally enable every African individual,
business, and government by 2030, while targeting intermediate priority results
by 2021. The DE4A initiative supports the operationalization of the initiative
of the AU to create a momentum for digital transformation in Africa, drawing
in commitments from member states, development partners, and other
stakeholders to the high-level objectives and encouraging leadership at the
national and subregional levels to champion the agenda.
For dynamic, inclusive, and safe digital economies to emerge, African
countries will need to follow a holistic approach to building a dynamic
digital economy on top of strong analog foundations of good governance,
enabling regulations, accountable institutions, and relevant skills. Based
on the experiences of successful digital economies, the five foundations
identified as critical and priorities for the DE4A initiative are: 1. Digital
Infrastructure (broadband networks, data centers); 2. Digital Platforms (digital
ID systems and trust services, govtech, private sector platforms, for example,
e-commerce); 3. Digital Financial Services (including digital payments); 4.
Digital Entrepreneurship (digital startups, and existing firms harnessing digital
technologies); and 5. Digital Skills. The five foundations of the digital economy
would need to be supported by a flexible legal and regulatory framework that
fosters competition, protects individuals and data, promotes inclusion, and
mitigates risks.
The digital transformation of Africa would foster economic growth and reduce
poverty. It has the potential to create more jobs, encourage entrepreneurship
among the youth, increase farmers’ productivity, bring more women into
the labor force, and create markets. Reaching the Digital Economy for Africa
Initiative targets would raise growth per capita by 1.5 percentage points per
year and reduce the poverty headcount by 0.7 percentage points per year.
The potential growth benefits and poverty reduction effects are larger in Sub-
Saharan Africa, and especially among fragile countries. When complemented
with appropriate human capital investments, these effects could more than
double.8
8. https://www.worldbank.org/en/region/afr/publication/taking-the-pulse-of-africas-economy
28 Broadband Commission Working Group on Broadband for All
Box 1.3. European Union-African Union
Digital Economy Task Force (EU-AU DETF)
The African and European Unions decided in December 2018 to establish
a Digital Economy Task Force, engaging a number of African and European
representatives of the public, private, and international sectors. The European
Commission set out its ambitions for a comprehensive and innovative
partnership between Africa and the EU, and a renewed determination to boost
investment for job creation with a stronger role for the private sector.
The goal of the task force is to draw policy recommendations and propose
concrete actions to address the principal barriers faced by the African
continent as it seeks to further develop the digital economy and society.
Over the past six months, the EU-AU Task Force has worked in developing a
shared vision and a set of common agreed principles, and its efforts resulted
in the final report presented at the Digital Assembly 2019 in Bucharest. The
report sets out a number of policy recommendations focused on four main
goals, namely:
1. Accelerating universal access to affordable broadband, requiring
developing the right financial instruments, regulatory environment,
business models, and synergies through properly designed partnerships;
2. Guaranteeing essential skills for all to enable citizens to thrive in the
digital age, understood in a wide and comprehensive way across lifelong
education pathways that needs to be addressed by all public or private
institutions;
3. Improving the business environment and facilitating access to finance
and business support services to boost digitally enabled entrepreneurship
and partnerships between African and European industry;
4. Accelerating the adoption of e-services and the further development of
the digital economy for achieving the Sustainable Development Goals.
The DETF report will guide the EU and AU to prioritize actions for cooperation.
It will continue to serve as a platform of partnership for the private sector,
donors, international organizations, financial institutions, and civil society
based on a shared understanding of how an already fast evolving African digital
transformation can achieve crossborder integration and bring benefits to
all citizens.
A “Digital Infrastructure Moonshot” for Africa 29
Amongst the proposed priorities with less proactive investment have
for digital transformation, digital seen less stellar results.9 Therefore, a
infrastructure is a critical foundational number of regional and international
element that provides the way for organizations, and private and public
people, businesses, and governments sector ICT stakeholders are presenting
to get online, and link with local and and advocating initiatives, strategies, and
global digital services – thus connecting programs around expanding access to
them to the wider digital economy. The broadband infrastructure and services,
2018 Global Connectivity Index (GCI) and set overlapping and mutually
also witnessed greater GDP returns reinforcing targets. Some examples of
among countries with concentrated such initiatives and targets are shown in
adoption of ICT infrastructure. Countries table 1.1.
Table 1.1. Examples of Digital Infrastructure Initiatives and Programs
UN Sustainable
Broadband Commission for Sustainable
Initiative Development
Development’s 2025 Targets
Goal Target 9.c
Adopted in 2015 Adopted in 2018
Adopted
(New York) (Davos)
BY 2025:
1. All countries should have a funded national
broadband plan or strategy or include broadband
in their universal access and service (UAS)
definition
Significantly 2. Entry-level broadband services should be made
increase affordable in developing countries at less than
access to 2% of monthly Gross National Income (GNI) per
information and capita
communications
3. Broadband internet user penetration should
technology
reach: a) 75% worldwide b) 65% in developing
Goals/ and strive to
countries c) 35% in Least Developed Countries
Targets provide universal
and affordable 4. 60% of youth and adults should have achieved
access to the at least a minimum level of proficiency in
internet in least sustainable digital skills
developed 5. 40% of the world’s population should be using
countries by digital financial services
2020
6. Overcome unconnectedness of micro-, small-
and medium-sized enterprises (MSMEs) by 50%,
by sector
7. Gender equality should be achieved across all
targets
9. Huawei. 2018. Tap into New Growth with Intelligent Connectivity: Mapping your Transformation into a Digital Economy with
GCI 2018. http://huawei-dialog.de/wp-content/uploads/2018/05/Huawei-Global-Connectivity-Index-2018-EN.pdf.
30 Broadband Commission Working Group on Broadband for All
Initiative ITU’s Connect 2030 Agenda for Sustainable Development
Initially adopted in 2014 (Busan); revised in 2018 (Dubai) (Resolution
Adopted
200)
BY 2023:
Goal 1: Growth – Enable and foster access to and increased use of
telecommunications/ICTs:
• Worldwide, 65% of households should have access to the internet
• Worldwide, 70% of individuals should be using the internet
• Worldwide, telecommunications/ICTs should be 25% more
Goals/ affordable (baseline year 2017)
Targets
• All countries adopt a digital agenda/strategy
• Worldwide, 50% increase in the number of broadband subscriptions
• 40% of countries to have more than half of broadband subscription
more than 10 Mbps
• 40 per cent of the population interact with government services
online
Goal 2: Inclusiveness – Bridge the digital divide and provide
broadband for all:
• In the developing world, 60% of households should have access to
the internet
• In the least developed countries (LDCs), 30% of households should
have access to the internet
• In the developing world, 60% of individuals should be using the
internet
• In the least developed countries (LDCs), 30% of individuals should
be using the internet
Goals/
Targets
• The affordability gap between developed and developing countries
should be reduced by 25% (baseline year 2017)
• Broadband services should cost no more than 3% of average
monthly income in developing countries
• Worldwide, 96% of the rural population should be covered by
broadband services
• Gender equality among internet users should be reached
• Enabling environments ensuring accessible telecommunications/
ICTs for persons with disabilities should be established in all
countries
A “Digital Infrastructure Moonshot” for Africa 31
Initiative ITU’s Connect 2030 Agenda for Sustainable Development
Goal 3: Sustainability – Manage challenges resulting from
telecommunication/ICT development:
• Improve cybersecurity preparedness of countries, with key
capabilities, presence of strategy, national computer incident/
emergency response teams and legislation
• Increase the global e-waste recycling rate to 30%
• The percentage of countries with an e-waste legislation raised to
50%
• Greenhouse gas emissions generated by the telecommunication/
ICT sector to be decreased per device by 30% (baseline year 2015)
Goals/ • All countries to have a National Emergency Telecommunication
Targets Plan as a part of their national and local disaster risk reduction
strategies
Goal 4: Innovation and partnership – Lead, improve and adapt to the
changing telecommunication/ICT environment:
• All countries to have policies/strategies fostering
telecommunication/ICT-centric innovation
• Increased effective partnerships with stakeholders and cooperation
with other organization and entities in the telecommunication/ICT
environment
World Economic Forum Digital Infrastructure Pillar of AU’s Digital
Initiative (WEF)’s Internet for All Transformation Strategy for Africa and
Initiative10 WBG’s Digital Economy for Africa
Adopted 2016 2019
Bring internet access
Achieving universal, affordable, and good
to the next 3-4 billion
Goals/ quality broadband connectivity by 2030
people and ensure the
Targets (interim milestone of doubling broadband
creation of local content
connectivity by 2021 – baseline year 2016)
and infrastructure
10. http://www3.weforum.org/docs/WEF_internet_for_All_4_pager.pdf
32 Broadband Commission Working Group on Broadband for All
While these initiatives set clear goals and
address important issues toward universal
broadband access, notably in Africa,
there has been less discussion about the
investment required and financing needs to
meet the targets, modalities for financing
the agenda, and how to operationalize the
framework and principles. In this regard,
the World Bank has led the UN Broadband
Commission Working Group on Broadband
for All: A Digital Infrastructure Moonshot
for Africa to engage key ICT industry
partners, estimate the investment needs,
and prepare a roadmap to help countries
and development actors accelerate
and prioritize their efforts to increasing
connectivity and reaching full coverage in
Africa. As such, the Working Group aims to
propose a new catalyst for the moonshot
approach – rather than an incremental
approach – to connect the unconnected,
accelerating and scaling exceptional and
coordinated efforts to achieve a seemingly
impossible goal.
A “Digital Infrastructure Moonshot” for Africa 33
2
Snapshot
of Africa’s
Digital
Infrastructure
34 Broadband Commission Working Group on Broadband for All
In broad terms, digital infrastructure lowest penetration of fixed broadband
comprises connectivity (for example, worldwide. Subscription charges in
high-speed broadband networks and Africa are still higher than that in middle-
internet exchange points),11 the Internet income countries. Monthly subscriptions
of Things (IoT) (for example, mobile in Sub-Saharan Africa are more than
devices, computers, sensors, voice- twice as costly as those in North Africa.
activated devices, geospatial instruments,
machine-to-machine communications, Today, mobile broadband, that is, the
vehicle-to-vehicle communications), use of high-speed internet via mobile
and data repositories (for example, data or smart device, is the principal way by
centers and clouds).12 For the digital which people accross Africa access the
economy, high-speed broadband internet (see figure 2.1). Nevertheless,
connectivity to access the internet is a despite the major advances in mobile
critical foundation.13 connectivity and internet access, Africa’s
mobile broadband penetration rate
Fixed broadband, that is, dedicated, (about 25 percent) is still the lowest
physical links of high-speed internet, worldwide. While coverage and quality
connected to homes, offices, and of mobile networks used for the internet
governments, has had very limited varies extensively amongst countries,
reach in Africa (see figure 2.1). Although substantial gaps also remain between
fixed broadband penetration has urban and rural access within countries.
continuously increased in recent years In terms of affordability, the African
in urban areas largely because of a sharp region has the highest price relative to
drop in subscription charges, mainly in income for mobile broadband services.14
Sub-Saharan Africa, Africa still has the
Figure 2.1. Broadband Penetration in African Countries by Technology,
2010-2018 15
35
30
Subscribers per
100 inhabitants
25
20
15
10
5
0
2010 2011 2012 2013 2014 2015 2016 2017 2018
Active Mobile Fixed Satellite Terrestrial
Broadband Broadband Broadband Broadband
Source: ITU.
11. Connectivity includes mobile and fixed access networks, metro and backhaul networks, national backbone networks, and
international connections.
12. Service enabling infrastructure include private or independent data centers, and, increasingly, Infrastructure-as-a-Service and
Software-as-a-Service cloud platforms.
13. Cesar Calderon, Kambou, Gerard, Korman, Vijdan, Kubota, Megumi, Cantu Canales, Catalina. 2019. “An Analysis of Issues
Shaping Africa’s Economic Future.” Africa’s Pulse, No. 19, April. https://openknowledge.worldbank.org/handle/10986/31499.
14. A4AI. https://a4ai.org/new-mobile-broadband-pricing-data-2018; ITU. https://www.itu.int/en/ITU-D/Statistics/Pages/
ICTprices/default.aspx
15. Fixed-broadband subscriptions refers to fixed subscriptions to high-speed access to the public internet (a TCP/IP
connection), at downstream speeds equal to, or greater than, 256 kbit/s. This includes cable modem, DSL, fibreto-the-home/
building, other fixed (wired)-broadband subscriptions, satellite broadband and terrestrial fixed wireless broadband.
A “Digital Infrastructure Moonshot” for Africa 35
Figure 2.2. Broadband Infrastructure Value Chains
Africa’s Invisible Mile
4
Policy and regulatory
reform, cybersecurity
and nonvisible areas all
require development
Africa’s
First Mile
1
•
Most
countries
are now
connected
•
Abundance
of cable
connectivity
in North
Africa
Africa’s Africa’s
Middle Mile Last Mile
2 3
•
Fiber backbone •
Mobile internet is available in urban
is an unfinished areas
agenda for both •
Dedicated / fixed internet for
SSA and North schools and offices is mostly NOT
Africa available
•
Internet in rural areasis mostly NOT
available
•
FTTH more advanced in North
Africa and a long way to go for SSA
1 2 3 4
FIRST MILE MIDDLE MILE LAST MILE INVISIBLE MILE
WHERE THE WHERE THE INTERNET WHERE THE HIDDEN ELEMENTS THAT
INTERNET ENTERS A PASSES THROUGH INTERNET REACHES ARE VITAL TO ENSURING
COUNTRY THAT COUNTRY THE END USER THE INTEGRITY OF THE
International National backbone Local access network, VALUE CHAIN
internet access, and intercity network, including local Nonvisible network
including submarine including fiber loop, central affice, components include
cables, landing backbone, microwave, exchanges, wireless the spectrum, network
stations, satellite internet exchange masts. databases, cybersecurity,
dishes, crossborder points (IXPs), local etc, but can also include
microwave, etc. hosting of content, etc. potential bottlenecks, like
international frontiers.
Source: World Bank, 2016.
The broadband network value chain, to need to be built incrementally. Equally
develop universal, affordable and good important are supporting infrastructure
quality broadband internet, comprises (for example, data centers and a reliable
four broad segments: first mile, middle electricity supply) and devices that are
mile, last mile, and invisible mile (see used to access the internet.
figure 2.2). All parts of the value chain
36 Broadband Commission Working Group on Broadband for All
The first mile is where the internet enters landing. The rapid expansion of the
a country. The network components are submarine cable network circumventing
international internet access and include the continent in the past decade has
submarine cables, landing stations, increased Africa’s international submarine
satellite dishes, crossborder microwave, fiber capacity nearly tenfold since 2010,16
domain name registration, and so on. crossing the 100 Tbps mark in 2018, with
new direct connections established with
Countries in Africa need to be connected Asia and the Americas.
to undersea cables or via crossborder
terrestrial links (particularly for landlocked Although the first mile has improved
countries). Many countries in Africa have thanks to the regional submarine
access to submarine cable systems, network infrastructure, it could be
either directly through local landing further improved if policies focused on
points or through terrestrial connections, liberalizing the market for satellite dishes,
particularly for smaller and landlocked having wholesale providers instead
countries (see box 2.1 and box 2.2). In of mobile operators own submarine
September 2018 only three countries cables (as there may be an incentive
were not connected by fiber to submarine for operators not to provide submarine
cables: the Central African Republic, connectivity to competitors in their
Eritrea, and South Sudan. Every seaboard markets), and promoting competition
country except Eritrea and Guinea- over the international gateway and cable
Bissau had at least one submarine cable landing stations.
Box 2.1. ITU Interactive Transmission Map
The Interactive Transmission Maps are a cutting-edge ICT-data mapping
platform to take stock of national backbone connectivity (optical fibers,
microwaves and satellite Earth stations) as well as of other key metrics of the
ICT sector. The map is validated by network operators and administrations
through the ITU Regional Offices and recorded in the Validation Framework.
Underlying the map is a database, containing records of each individual link.
The following indicators are either compiled or calculated from this database: i)
Transmission network length (route kilometers); ii) Node locations; iii) Equipment
type of terrestrial transmission network; iv) Network capacity (bit rate); v) Number
of optical fibers within the cable; vi) Operational status of the transmission
network indicator; vii-a) Percentage of population within reach of transmission
networks; vii-b) Percentage of area within reach of transmission networks.
Source: https://www.itu.int/itu-d/tnd-map-public/
16. Xalam Analytics. 2017. The Future of African Bandwidth Markets, May. https://xalamanalytics.com/product/the-future-of-
african-bandwidth-markets/
A “Digital Infrastructure Moonshot” for Africa 37
The middle mile is where the internet the largest metros – only in Sub-Saharan
passes through a country. The network African markets.18
components are the national backbone
and intercity networks, including the fiber Satellite transmission remains extremely
optic cables or copper wires, microwave, important for Africa, with satellite
satellite links, internet exchange points bandwidth covering every square
(IXPs), local hosting of content, and so kilometer of Africa and providing
on. connectivity beyond the reach of
terrestrial transmission networks. Africa
Once connected to high-speed internet Mobile Networks (AMN) plans to use
at the border, countries in Africa require capacity from geostationary (GEO)
fiber backbones to carry internet satellites to build and operate 5,000
traffic from the border to urban and mobile network base stations to serve
rural centers throughout the country rural communities in Sub-Saharan Africa
and backhaul or metro networks to that currently lack service.
extend further. Africa’s terrestrial fiber
infrastructure has witnessed significant Currently, 42 percent of countries
transformation. According to Hamilton in Africa lack IXPs. According to the
Research, African countries have Africa IXP Association (Af-IX), there are
rolled out over 1,389,000 kilometers about 44 active IXPs located across
of terrestrial fiber links, of which about 32 countries in Africa. This means that
936,000 kilometers were operational in most of their domestic internet traffic
2018.17 According to Xalam Analytics, at is exchanged through points outside
least another 230,000 kilometers of fiber their respective country, usually through
are needed to reach planned target of satellite or submarine fiber across
universal access by 2030, with another multiple international hubs to reach their
25,000 kilometers to moderately densify destination.19
18. Xalam Analytics. 2018. Please refer to appendix A.
19. Internet Society. https://www.internetsociety.org/issues/ixps/facebook-ixp-partnership/
38 Broadband Commission Working Group on Broadband for All
Box 2.2. African Undersea and Terrestrial
Fiber Optic Cables
Terrestrial Fibre Status Undersea Fibre Optic Cables
Live 60GBPS 5TBPS
Under Construction
AfTerFibre or African Terrestrial Fibre is a map of African terrestrial (and now
undersea) fiber optic infrastructure initiatives. It was developed with some
initial support from Google and is now hosted and supported by the Network
Startup Resource Center. AfTerFibre is an open data initiative with data sources
available for public download.
Maps for AfTerFibre are typically sourced as raster images, sometimes from
the corporate websites of operators, sometimes from studies or reports
on regional infrastructure development, and sometimes through personal
contacts. Maps that are not already available on the web are uploaded to a
Flickr website. The raster images are then digitally traced and converted into
GIS format and uploaded to the CartoDB, a cloud-based GIS platform.
Source: https://afterfibre.nsrc.org/
A “Digital Infrastructure Moonshot” for Africa 39
The last mile is where the internet the most acute in Africa: 3G network
reaches the end-user. Once high- coverage reached about 71 percent and
speed internet arrives at a population 4G coverage about 40 percent in 2018.
center, via the first and middle miles, Further expansion is expected in the
telecommunications operators provide coming years (see box 2.3). According
internet services (such as mobile or to the ITU, the number of broadband
fixed internet services) to people, connections in Africa crossed the 400
businesses, and governments. The million mark in 2018, nearly twenty
network components are the local times 2010 levels, boosted by a broad
access network, including the local loop, expansion in 3G, 4G, and last mile fiber
which has historically been comprised network coverage.
of copper cables but now fiber is
increasingly used in urban areas, central Several transformative technologies,
office exchanges, and cellular wireless such as the Internet of Things (IoT)
masts as well as satellite. There are also and artificial intelligence, depend on
new developments, for example, last mile connectivity. As Africa cannot afford to
fiber could potentially be replaced with miss the next technological wave, there
5G fixed wireless access (FWA), and other is a need to connect the unconnected
innovative solutions (such as drones or in rural Africa and ensure that rural areas
balloons). will benefit from digitalization efforts
particularly in agriculture, health, and
In Africa, because of gaps in the first education. In this regard, the “traditional”
and middle miles, telecommunications broadband plans must evolve towards
operators have historically relied fully fledged digitalization plans that
upon satellite links to provide internet consider all sectors of the economy and
services. With undersea internet cables government that can benefit from digital
being built for the first mile in Africa, transformation strategies.
and fiber backbones slowly emerging
for the middle mile, Africa’s last mile Moreover, Africa is witnessing one
connectivity also continues to expand of the highest rates of rural-urban
as operators roll out mobile and fixed migration at the present time. Africa’s
broadband infrastructure. According to urban population is expected to triple by
Hamilton Research, in June 2018, 54.2 2050.20 Managing the urban transition
percent of the population in Sub-Saharan will therefore be key for economic
Africa lived within a 25-kilometer growth and the wellbeing of Africa’s
range of an operational fiber optic urban and rural populations. Connecting
network node, which marks a significant cities in Africa and making them smarter,
expansion of the reach of the internet safer, and more sustainable requires
beyond urban centers to thousands of attention. Today, Smart City projects and
towns in the interior. initiatives in Africa remain fragmented,
representing one or more standalone
Despite the recent rapid expansion of applications based on specific needs,
network coverage around the world, resources, and priorities making them
mainly driven by the upgrading of 2G hard to integrate with other applications
networks to 3G or 4G and network as part of a common framework.
sharing, the mobile coverage gap is
20. UNECA. 2017. Economic Report on Africa 2017. Urbanization and Industrialization for Africa’s Transformation.
https://uneca.org/publications/economic-report-africa-2017.
40 Broadband Commission Working Group on Broadband for All
Box 2.3. GSMA Mobile Coverage Map
GSMA’s Mobile Coverage Maps platform is a tool that is intended to help
operators and others estimate the precise location and size of uncovered
populations. These maps allow users to:
• Gain an accurate and complete picture of the mobile coverage in a given
country by each generation of mobile technology (2G, 3G, and 4G)
• Estimate the population living in uncovered or underserved settlements
with a very high level of granularity (for example, small cities, villages or
farms)
• Search for uncovered settlements based on population size
Data are directly collected from mobile operators and overlaid with the High
Resolution Settlement Layer, a dataset developed by Facebook Connectivity
Lab and the Center for International Earth Science Information Network
(CIESIN) at Columbia University. This data estimates human population
distribution at a hyperlocal level, based on census data and high-resolution
satellite imagery. This data has been enriched by adding socioeconomic
indicators and key buildings such as schools, hospitals, and medical centers.
The platform currently hosts eight maps: Ghana, Côte d’Ivoire, Liberia, Nigeria,
Rwanda, Tanzania, Uganda, Zambia, with further countries to be added.
Source: https://www.mobilecoveragemaps.com/
A “Digital Infrastructure Moonshot” for Africa 41
The invisible mile consists of the hidden
elements that are vital to ensuring
Supporting
the integrity of the value chain. This Infrastructure
includes the network components
that are not visible, including the radio Access to reliable electricity is also a
spectrum, network databases (for major constraint to the expansion of
example, for numbering), cybersecurity, digital infrastructure in Africa. Electricity
and so on, but can also include is needed for a range of activities, from
potential bottlenecks such as market recharging devices to powering mobile
concentration, multilayered taxation of base stations. Overall, the household
activities, lack of access to rights-of- electrification rate in Sub-Saharan Africa
way, and inefficient regulations including is the lowest in the world, averaging
transborder regulatory issues. While 44 percent of the population in 2017
mobile technology has a leading role – compared with 87 percent in North
in extending broadband access and the Africa and worldwide (see figure 2.3).21
significance of satellite services in African There are also huge gaps in electricity
continent, the availability of frequency access between rural and urban
spectrum is limited in most of the African households in the region. Access rates
countries. Africa has amongst the lowest among urban households are about
allocation of spectrum to the mobile 79 percent, compared with 23 percent
network operators (MNOs). among rural households in Sub-Saharan
Africa. Even in grid-connected areas,
electricity service quality is often low,
with frequent and sometimes long-
lasting outages, planned and unplanned.
In addition, the cost of electricity is a
major challenge in some countries,
adding to the cost of broadband access.
Meanwhile, increasing investment in
rural electricity mini-grids, off-grid solar,
and recent technological development
has started to offer more cost-effective
solutions other than grid extension to
remote and rural areas.
While the Sustainable Development
Goals (SDGs) include a target to
ensure access to affordable, reliable,
sustainable, and modern energy for all
(SDG 7), notable initiatives to support the
electrification in Africa include: the World
Bank’s Energy portfolio and the African
Development Bank (AfDB)’s Sustainable
Energy Fund for Africa program
(see box 2.4).
21. IEA, IRENA, UNSD, WB, WHO. 2019. Tracking SDG 7: The Energy Progress Report 2019. Washington, DC: World Bank.
https://trackingsdg7.esmap.org/data/files/download-documents/2019-Tracking%20SDG7-Full%20Report.pdf
42 Broadband Commission Working Group on Broadband for All
Figure 2.3. Proportion of Population with Access to Electricity, 2017
0% 25% 50% 75% 100%
Source: IEA https://www.iea.org/sdg/
Box 2.4. Sustainable Development Goal on
Energy (SDG7) and the World Bank Group
Sustainable Development Goal 7 calls for achieving universal access to reliable,
affordable, and modern energy services. This goal has also been one of the
guiding principles for the World Bank’s energy lending. Correspondingly, the
World Bank has been scaling up its financing for electricity access, committing
over $1 billion a year (FY18 and FY19) of financing to directly expand access
through grid expansion, mini-grids or off-grid solutions, not counting
additional funding for upstream generation, transmission, and distribution
investments. Recognizing the new opportunities created by technology
advances, about half of the financing commitments are targeting decentralized
renewable energy solutions, such as mini-grids and standalone solar home
systems, leveraging also private sector investments into these technologies.
The vast majority (over 90 percent) of these energy access investments are
targeting Sub-Saharan Africa. In order to assist governments to accelerate
progress towards the universal electricity access, the World Bank is also
supporting governments in improved planning, using geospatial least-
cost electrification tools. For this purpose, the Energy Sector Management
Assistance Program (ESMAP) is launching a new geospatial electrification tool:
the Global Electrification Platform (GEP), which will support policy makers,
development partners and private sector in better planning and targeting
of electrification investments, allowing least-cost integration of grid, mini-
grids, and off-grid technologies, based on geospatial data and multiple
policy scenarios.
A “Digital Infrastructure Moonshot” for Africa 43
Africa’s content hosting infrastructure
is also becoming more robust, thanks
to the buildout of dozens of dedicated
data center facilities across the region.
Africa’s data center colocation space has
nearly doubled in size since 2014.22 Data
centers also consume vast amounts of
electricity to power computer equipment
and keep them cool. In 2011, Google
reported that it used 260 megawatts
of electric power for its data centers,23
which is greater than the 2014 installed
capacity in 19 Sub-Saharan African
countries.24 Moreover, data centers
require high levels of reliability to ensure
a seamless, nonstop flow of data. Owing
to the region’s challenging environment
for reliable and inexpensive electricity,
most businesses host their data outside
the region. This results in a large volume
of data transmitted to overseas data
centers, requiring significant amounts
of international bandwidth. Along with
connectivity and storage costs, it takes
a longer time to access overseas data
centers, raising the issue of latency.
Security also is an issue, as increasing
amounts of government, business, and
personal information are transmitted
abroad, with uncertain data protection.25
22. Xalam Analytics. 2018. The African Data Center
Colocation Boom.
23. Glanz, James. 2011. “Google Details, and Defends, Its
Use of Electricity.” The New York Times, 8 September.
http://www.nytimes.com/2011/09/09/technology/
google-details-and-defends-its-use-of-electricity.html
24. Trimble, Christopher Philip, Kojima, Masami, Perez
Arroyo, Ines, and Mohammadzadeh, Farah. 2016.
Financial Viability of Electricity Sectors in Sub-Saharan
Africa: Quasi-Fiscal Deficits and Hidden Costs. Policy
Research Working Paper 7788. Washington, DC: World
Bank Group. http://documents.worldbank.org/curated/
en/182071470748085038/Financial-viability-of-
electricity-sectors-in-Sub-Saharan-Africa-quasi-fiscal-
deficits-and-hidden-costs
25. Blimpo, Moussa P., and Malcolm Cosgrove-Davies.
2019. Electricity Access in Sub-Saharan Africa: Uptake,
Reliability, and Complementary Factors for Economic
Impact. Africa Development Forum. Washington, DC:
World Bank. https://openknowledge.worldbank.org/
handle/10986/31333
44 Broadband Commission Working Group on Broadband for All
A “Digital Infrastructure Moonshot” for Africa 45
3
Mission, Vision,
and Principles
for Digital
Transformation
in Africa
46 Broadband Commission Working Group on Broadband for All
The vision and objectives of the Successful achievement of these mission
Broadband for All: A Digital Infrastructure and visions is highly dependent on the
Moonshot for Africa Working Group following elements that cover both
are fully aligned with other related supply and demand sides for boosting
initiatives, programs, policies, and broadband infrastructure:
funding mechanisms, such as the
Broadband Commission’s Target 2025, • Increased level of investment:
AU’s Digital Transformation Strategy significant investment is required
for Africa Initiative, and the World Bank throughout the broadband
Group’s Digital Economy for Africa infrastructure value chain, in
(DE4A) initiative. The Working Group is particular in local access network
tasked with defining connectivity gaps, infrastructure in rural and remote
investment requirements, and defining areas. Any financing gap to meet
a roadmap and action plan in support of the goals will be bridged through
achieving broadband for all in the African the mobilization of public as well as
continent, which will help reach the UN private capital – mainly through the
Sustainable Development Goals (SDGs) Mobilizing Finance for Development
through digital transformation. (MFD) approach (see box 3.1);
In this regard, to make a meaningful • Enabling policy and regulatory
contribution to the broader digital framework: Government policies
transformation agenda, the Working and practices should promote
Group’s vision of digital connectivity is investment and effective competition
that it should be: to drive down prices and ramp up
usage, regulators should adopt
• Universal: existing coverage gaps open and participatory processes
by fixed and mobile broadband to reach decisions that take into
networks should be addressed account the interests of all involved
to ensure that broadband service stakeholders. It is also crucial that
is available for every individual, the regulatory framework must also
business, and government on evolve compliant with advances in
the continent; technology (see box 3.2).
• Affordable: the price of broadband • Digital skills for the digital citizen:
service should be sufficiently low All citizens must have basic digital
so that it may be provided as a skills that prepare them as active
basic service. digital citizens who understand the
value of the internet and how to use
• Good quality: the quality of it, as well as produce local content.
broadband is often measured by
median upload and download speeds • Device affordability: A set of policy
(Mbps) and latency. The definition of and market measures needs to
broadband access should go beyond be implemented to increase the
getting people online and ensure affordability of internet-enabled
minimum service levels – in order handsets to provide a reliable
to reap the benefits of broadband means to get online.
connections on innovation
and productivity.
A “Digital Infrastructure Moonshot” for Africa 47
Box 3.1. Mobilizing Finance for Development
(MFD)
Mobilizing Finance for Development (MFD) is the World Bank Group’s approach
to systematically leverage all sources of finance, expertise, and solutions to
support developing countries’ sustainable growth. The Principles of MDB’s
Strategy for Crowding-in Private Sector Finance for Growth and Sustainable
Development (the Hamburg Principles) provide a common framework for
multilateral development banks (MDBs) to increase levels of private investment
in support of development. Based on their experience to date in working with
the private sector, the MDBs agreed to focus their efforts on three main areas:
• Strengthening investment capacity and policy frameworks at national
and subnational levels;
• Enhancing private sector involvement and prioritizing commercial
sources of financing; and
• Enhancing the catalytic role of MDBs themselves.
In scaling up private-finance mobilization, the aim is to support countries’
development goals, in ways that complement and reinforce public resources.
Given the demand-driven nature of the MDBs’ work, client countries are
ultimately responsible for engaging the MDBs in catalyzing private investment
– each MDB will therefore tailor its approach to the specific opportunities in its
member countries as well as its own remit and structure, within the framework
established by the Hamburg Principles.
The WBG institutions – IBRD, IDA, IFC, and MIGA – work in concert to
promote private investments that are economically viable and cost effective,
fiscally and commercially sustainable, balanced from a risk-reward perspective,
and transparent. Through this holistic approach, the WBG supports improving
the enabling environment, developing regulatory conditions, building capacity,
putting in place standards, financing a first mover or innovator, and
reducing risks.
Source: http://www.worldbank.org/en/about/partners/maximizing-finance-for-development#1
48 Broadband Commission Working Group on Broadband for All
Box 3.2. GSR19 Best Practice Guidelines to
Fast-Forward Digital Connectivity for All
If we are set to achieve the UN Sustainable Development Goals (SDGs) in our
societies by 2030, we need to be open to new regulatory tools and solutions
and act now.
Digital connectivity can provide the canvas for achieving SDGs across the
board and the transformative impact of digitalization will underpin progress on
various development paths. The opportunities are within reach; however, they
cannot be taken for granted.
1. Core design principles for collaborative regulation
Policy design principles are at hand for regulators to help develop an
understanding of new technology paradigms and guide them towards
appropriate regulation. Led by these principles, regulators can fine tune their
regulatory response, ensuring optimal impact on the market.
We therefore identified seven design principles to respond to new technology
paradigms and business models stemming from collaborative regulation:
i. To achieve digital transformation, policy and regulation should be more
holistic. Cross-sectoral collaboration along with revisited regulatory
approaches such as coregulation and self-regulation, can lead to new
forms of collaborative regulation based on common goals such as social
and economic good, and innovation.
ii. Policy and regulation should be consultation and collaboration based.
In the same way digital cuts across economic sectors, markets and
geographies, regulatory decision making should include the expectations,
ideas and expertise of all market stakeholders, market players, academia,
civil society, consumer associations, data scientists, end-users, and relevant
government agencies from different sectors.
iii. Policy and regulation should be evidence-based: Evidence matters for
creating a sound understanding of the issues at stake and identifying the
options going forward, as well as their impact. Appropriate authoritative
benchmarks and metrics can guide regulators in rule-making and
enforcement, enhancing the quality of regulatory decisions.
iv. Policy and regulation should be outcome-based: Regulators need to
address the most pressing issues, for example market barriers and enabling
synergies. The rationale for any regulatory response to new technologies
should be grounded in the impact on consumers, societies, market players
and investment flows as well as on national development as a whole.
v. Policy and regulation should be incentive-based: Collaborative regulation
is driven by leadership, incentive and reward. Regulators should keep a
wide array of investment incentives at hand to provide impetus for markets
to innovate and transform while maximizing benefits to consumers.
A “Digital Infrastructure Moonshot” for Africa 49
vi. Policy and regulation should be adaptive, balanced, and fit for purpose:
Regulation-making is about flexibility – continually improving, refining, and
adjusting regulatory practices. The balance in regulatory treatment of new
services is more delicate than ever. A close, continuous link to markets and
consumers is important to get digital on the right glide path to achieving
social and economic goals.
vii. Policy and regulation should focus on building trust and engagement:
Collaborative regulation provides the space for cocreating win-win
propositions, working towards regulatory objectives while increasing the
engagement of industry. Trust becomes the foundation of the regulatory
process, underpinning the growth of digital.
Source: www.itu.int/bestpractices
Note: Since 2000, the Global Symposium for Regulators (GSR) brings together heads of national telecom/
ICT regulatory authorities from around the world and serves as the global annual venue for regulators to
share their views and experiences on the most pressing regulatory issues they have identified. GSR also fos-
ters a dynamic global industry regulators dialogue, between regulators, policy makers, industry leaders, and
other key ICT stakeholders. GSR’s Global Dialogue provides a neutral platform for ITU-D Sector Members to
share their views on major issues facing the ICT sector. GSR concludes with the adoption by regulators of a
set of regulatory best practice guidelines.
Meanwhile, the following guiding • Safe and Secure: Safe and secure
principles should underpin the planning, digital environment encompasses
funding, design, construction and data protection provisions and
operation of the digital infrastructure security of critical information
under this initiative: infrastructure. These principles
ensure increased confidence in,
• Inclusive: Targeted approaches are and use of, the internet while
needed to address the increasing facilitating the success and stability of
gender and digital divide to broadband networks.
ensure the social and economic
empowerment of disadvantaged • Resilient and Sustainable:
groups and people with specific Infrastructure resilience is the
needs including rural communities, ability of infrastructure systems to
differently abled persons, young function and meet users’ needs
people and children, and women during and after a natural hazard.
and girls. Making them more resilient is critical
not only to avoid costly repairs but
also to minimize the wide-ranging
consequences of natural disasters
for the livelihoods and wellbeing of
people (see box 3.3).26
26. Hallegatte, Stéphane, Jun Erik Maruyama Rentschler, and Julie Rozenberg. 2019. Lifelines: The Resilient Infrastructure
Opportunity (French). Sustainable Infrastructure. Washington, DC: World Bank Group.
http://documents.worldbank.org/curated/en/821871561014920854/Lifelines-The-Resilient-Infrastructure-Opportunity.
50 Broadband Commission Working Group on Broadband for All
Box 3.3. Principles for Natural Disasters and
Climate Change in the Telecom Sector
The distributed and largely private ownership of telecommunications
infrastructure and its cross-sectoral dependencies make it challenging to
implement nationwide turnkey efforts at building infrastructure resilience.
However, a collaborative approach between stakeholders within ICT and
across sectors can contribute towards shared resilience at lower cost and help
reconcile the need for investment in resilience and in expansion of networks,
while improving affordability.
Some general principles that can support building resilience of
telecommunications infrastructure against climate and geophysical events
through coordinated action between the public and private sectors are:
• Include telecommunications infrastructure as critical national
infrastructure: Recognizing the importance of domestic and international
connectivity to the economy, governments may choose to categorize
these infrastructures as critical, and include them in national climate
risk assessments. This would also enable necessary legal and regulatory
reforms to facilitate increased resilience and disaster readiness of digital
infrastructure, and provide a platform for engagement with the private
sector, as owners of the infrastructure, on the subject.
• Encourage development, acceptance, and adherence to standards:
The data center industry has grown globally by building trust through
international standards, for all aspects of design, construction, operation,
and demise of facilities. Such an approach to climate resilience of
connectivity infrastructure can enable greater coordinated improvements
in resilience.
• Identify and rectify points of failure through redundancy or rapid
restoration: The private sector should periodically assess impact of acute
and long-term climate and geophysical events across the value chain.
Owners of nodes such as data centers, landing stations and IXPs may find
it prudent to invest in redundancy while owners of last mile infrastructure
may find restoration and replacement to be more viable investments.
Similarly, the public sector can perform similar aggregated assessments at
national and subnational levels to identify and rectify vulnerabilities.
• Include resilience in new investment and upgrade decisions: Leverage the
relatively shorter lifecycles and rapid rate of technological obsolescence
to include climate resilience in all elements of network design and, in turn,
in investment decisions. This also applies to the enabling environment to
support improved resilience through iterative reforms that facilitate rapid
rollout of cost-saving and resilience-enhancing measures.
A “Digital Infrastructure Moonshot” for Africa 51
• Leverage cross-sector dependencies: Digital infrastructure is dependent
on energy to operate, and data centers have the added requirement
for water. Additionally, these utilities and transport are increasingly
dependent on telecommunications for their routine operations. These
interdependencies provide opportunities for shared investment in
resilience, backup and restoration efforts. The public sector can play a
critical role in coordinating these efforts as the only common point of
contact between the various stakeholders.
• Mobilize financing for increased investment in resilience: While digital
connectivity increasingly becomes a utility infrastructure, it does not benefit
from the public support other traditional infrastructures have received
over the years. However, there are opportunities for mobilizing public and
private sector capital in strengthening the resilience of national digital
infrastructure, as demonstrated in the past by the sector through successful
implementation of universal service and access funds. Facilitating private-
sector investment in, and contribution to, the resilience and protection
of infrastructure assets is a key role the public sector and international
organizations can play.
52 Broadband Commission Working Group on Broadband for All
The initiative is also guided by core Infrastructure (see box 3.4), five principles
principles for other related initiatives for the AU’s Digital Transformation
and programs on digital transformation Strategy for Africa (see box 3.5), and the
and digital infrastructure, including the ITU’s Strategic Plan for 2020-2023 (see
World Bank Core Principles for Digital box 3.6).
Box 3.4. The World Bank’s Core Principles
for Digital Infrastructure
• Enabling a procompetitive, human-centric ICT policy and regulatory
framework: to eliminate barriers to entry, introduce competition in the
ICT sector, reduce overall industry costs and prices, with a focus on
expanding connectivity for all, including for the poor, marginalized, and
rural populations.
• Building strong institutional capacity: to build independent regulatory
institutions that enforce regulations in a transparent, participatory
regulatory process.
• Enabling investment climate: to create policy and regulations on foreign
investment and national fiscal policy in telecommunications and the ICT
sector in general, that facilitate and incentivize capital expansion.
• Supporting policy and regulatory approaches for broadband deployment
and converged services: to adapt necessary legal and regulatory
frameworks to make them better suited to support broadband access and
services; to adhere to open access principles; to secure a safe internet; to
seek only the level of regulation necessary to promote the rapid growth of
new services and applications and to minimize barriers to entry.
• Addressing access gaps by going beyond the market: to utilize public
funding, development aid, or government initiatives to bring affordable
broadband to underserved areas and population groups, where the private
sector will not reach because of the lack of market incentives.
• Supporting gender-responsive policy and regulatory approaches to
affordable broadband deployment and services: to contribute to the
elimination of the digital gender gap.
• Achieve digital inclusion by supporting digitally inclusive policies,
strategies and targeted approaches to address the increasing gender
and digital divide: to ensure the social and economic empowerment of
disadvantaged groups and persons with specific needs including rural
communities, differently abled persons, youth and children and women
and girls.
Source: Boutheina, Guermazi and David Satola. 2005. “Creating the ‘Right’ Enabling Environment for ICT.”
In E-development: From Excitement to Effectiveness, edited by Robert Schware, 23-46. Washington, DC:
World Bank Group. https://openknowledge.worldbank.org/bitstream/handle/10986/7274/341470EDevelop-
ment.pdf?sequence=1&isAllowed=y
A “Digital Infrastructure Moonshot” for Africa 53
Box 3.5. Five Principles for the Digital
Transformation Strategy for Africa
The African Union and the World Bank’s DE4A initiative agreed on the following
five principles of the digital economy that are key to implementing the five
main foundations of the strategy:
• Comprehensive: taking an ecosystem approach that looks at supply
and demand and defies a narrow silo approach in defining the required
elements and foundations for the digital economy.
• Transformative: aiming at a very different scale of ambition, beyond
incremental “islands” of success.
• Inclusive: ensuring that the digital economy creates equal access to
opportunities and dealing with the risks of exclusion.
• Homegrown: basing expansion of the digital economy on Africa’s
realities and unleashing the African spirit of enterprise to produce more
homegrown digital content and solutions, while embracing what is good
and relevant from outside the continent.
• Collaborative: dealing with the digital economy requires a flexible mindset,
requiring different types of collaboration among countries, sectors, and
public and private players, as well as facilitation, retooling, and encouraging
risk taking.
54 Broadband Commission Working Group on Broadband for All
Box 3.6. Mission, Vision, and Values
for ITU’s Strategic Plan 2020-2023
Vision: An information society, empowered by the interconnected world,
where telecommunications/information and communication technologies
enable and accelerate social, economic and environmentally sustainable
growth and development for everyone.
Mission: To promote, facilitate, and foster affordable and universal access
to telecommunication/information and communication technology
networks, services and applications and their use for social, economic and
environmentally sustainable growth and development.
Value: ITU recognizes that achieving its mission requires that it build and
maintain trust among its membership and inspire the confidence of the public
at-large. This applies to both what the Union does and how it is done. The
Union is committed to continuously building and safeguarding that trust by
ensuring that its actions are guided by the following values:
• Efficiency: Focusing on the purposes of the Union, making decisions on
the basis of appropriate studies, evidence, and experience, taking effective
action and monitoring outputs, avoiding internal ITU duplication.
• Transparency and accountability: By enhancing transparency and
accountability processes for better decisions, actions, results and
management of resources, ITU communicates and demonstrates progress
towards the achievement of its goals.
• Openness: Being aware of and responsive to the needs of all its membership,
as well as the activities and expectations of intergovernmental organizations,
the private sector, civil society, the technical community, and academia.
• Universality and neutrality: As a United Nations specialized agency, ITU
reaches, covers, and represents all parts of the world. Within the remit of
the Basic Instruments of the Union, its operations and activities reflect the
express will of its membership preferably by consensus. The Union also
recognizes the overarching pre-eminence of human rights, including the
right to freedom of opinion and expression, which includes the freedom
to seek, receive and impart information and ideas through any media
and regardless of frontiers, and the right to not be subjected to arbitrary
interference in privacy.
• People-centered, service-oriented and results-based: Being people-
centered, ITU is focused on people in order to deliver results that matter
to each and every individual. Being service-oriented, ITU is committed
to further delivering high-quality services and maximizing satisfaction of
beneficiaries and stakeholders. Being results-based, ITU aims for tangible
results and to maximize the impact of its work.
A “Digital Infrastructure Moonshot” for Africa 55
4
Investment
Requirements
for 2021 and
2030 Digital
Infrastructure
Targets
56 Broadband Commission Working Group on Broadband for All
Achieving universal, affordable, and percent increase in mobile broadband
good quality access to broadband penetration is likely to lead to a 2.5
connectivity in Africa would be a percent increase in GDP.29 However,
significant undertaking considering there is limited quantitative analysis
that the continent still has so far to go available for estimating precisely how
to achieve universal coverage for basic much total investment will be required
services, such as electricity, clean water, to realize this objective in the specific
housing, education, healthcare, and so context of Africa. For the purposes of
on. Nevertheless, broadband access can this assessment, and through a process
provide a foundation and indeed support of consultation with stakeholders, this
efforts for achieving universal coverage report seeks to provide such quantitative
in other areas, such as in healthcare support to inform government policies
coverage and service provision.27 The and private sector strategies.30
economic impact of broadband access,
moreover, is notable. ITU’s 2018 study The process for developing the
on the economic impact of broadband investment requirements for the
penetration noted that, in middle income broadband networks’ component of
countries, an increase of ten percent in the DE4A initiative is outlined below,
mobile broadband penetration yields an with the key assumptions underpinning
increase of 1.8 percent in GDP, and for these estimates and the findings of this
low income countries, an increase of ten analysis. In addition, appendix A provides
percent in mobile broadband penetration a detailed review of definitions and
yields an increase of two percent in methodology used to develop
GDP.28 In Sub-Saharan Africa, a ten these estimates.
27. See Deloitte. 2014. Value of Connectivity Economic and Social Benefits of Expanding Internet Access.
28. ITU. 2018. The Economic Contribution of Broadband, Digitalization and ICT Regulation.
https://www.itu.int/pub/D-PREF-EF.BDR-2018
29. ITU. 2019. Economic Contribution of Broadband, Digitization and ICT Regulation: Econometric Modelling for Africa.
https: www.itu.int/dms_pub/itu-d/opb/pref/D-PREF-EF.BDT_AFR-2019-PDF-E.pdf
30. See the following reports for early analysis on this topic: https://www.un.org/esa/ffd/wp-content/uploads/2016/01/Financing-
for-ICT-Infrastructure_ITU_IATF-Issue-Brief.pdf; and http://www.eu-africa-infrastructure-tf.net/attachments/library/aicd-
background-paper-3-ict-invst-summary-en.pdf
A “Digital Infrastructure Moonshot” for Africa 57
Box 4.1. A Multistakeholder Process
The World Bank, with support from the Alliance for Affordable Internet
(A4AI), has prepared a baseline assessment of current broadband
connectivity in Africa and what would be required to achieve the 2021
milestone and the 2030 target. The analysis used a variety of data sources,
principally from the World Bank Group (WBG), the United Nations (UN), the
International Telecommunication Union (ITU), the Global System for Mobile
communications Association (GSMA), the A4AI, the World Economic Forum
(WEF), and Xalam Analytics.
To verify the quantitative analysis, the WB and A4AI convened several
multistakeholder consultation groups – notably with the Commissioners from
the Broadband Commission’s Working Group on Broadband for All, multiple
stakeholders in the ecosystem, including WBG development partners – to
engage key ICT industry partners and identify possible ways of increasing
connectivity and reaching full coverage in Africa. This diverse group included
representatives from over 35 private companies, international organizations,
and civil society groups from around the globe (see appendix C for the full list
of representatives and more information about the consultation process).
Key Assumptions
The assumptions for the investment estimates are anchored in several definitions that
were consulted upon.
2021 Milestone versus 2030 Target for the DE4A Initiative
To ensure that its Digital Transformation Initiative is fully realized and to ensure
the strategy is on track, the World Bank has developed two goals:
• a short-term progress milestone to be achieved by 2021 – to double
broadband connectivity penetration in Africa by 2021 from 2016
penetration levels
• a long-term target to be achieved by 2030 – to achieve universal,
affordable and good quality broadband access in Africa by 2030
58 Broadband Commission Working Group on Broadband for All
For the 2021 milestone to double 1. Good quality broadband internet
broadband connectivity in Africa by is defined as an average download
2021 from 2016 penetration levels, the speed of at least 10 Mbps and is
assumptions are: technology neutral (that is, data
may be transmitted via cable,
1. Broadband internet is defined fiber, satellite, radio, or other
(during this period) as an average technologies).
download speed of 3 Mbps and
is technology neutral (that is, 2. Universal coverage is defined as
data can be transmitted via cable, 90 percent penetration of the
fiber, satellite, radio, or other population of 10 years of age and
technologies). older. The estimated level of the
penetration rate is primarily based
2. Doubling broadband penetration on GSMA Intelligence data, as it is
is defined as doubling, between the most accurate source of mobile
year-end 2016 and year-end 2021, broadband infrastructure data
the levels of broadband penetration available. The target age is set at 10
among the population of 10 years years and older in recognition of
of age and older. 2016 is selected data protection and privacy laws
as the baseline year for this analysis of various countries that seek to
to ensure alignment with the World protect children when accessing
Bank’s World Development Report the internet. The 90 percent
2016 and to consider the lead time penetration target is used to define
to plan and roll out broadband universality to take account of that
networks. The estimated level of the segment of the population which
penetration is provided by GSMA chooses not to use personal ICTs,
Intelligence data and adjusted by SIM those who are prevented from
ownership ratio to determine unique doing so (for example, prisoners)
subscribers. The target is set at 10 and those who use shared facilities,
years of age and older, in recognition for instance, within a family, from
of data protection and privacy laws of a school or university, or from a
various countries that seek to protect community center.
children when accessing the internet.
3. Affordable access is defined in terms
Doubling broadband penetration in Africa of the Broadband Commission for
by 2021 is a milestone towards the 2030 Sustainable Development’s target
target, to achieve universal affordable of entry-level mobile broadband
and good quality broadband access in data costing two percent or less of
Africa by 2030. For this 2030 target, the average monthly income.31
key assumptions are:
4. Connecting the last 15-20
percent of the population in
rural and remote areas, depending
on the population density level,
requires innovative business models
and alternative technologies,
such as satellite and Wi-Fi based
technical solutions.
31. Broadband Commission for Sustainable Development. 2018. 2025 Targets: Connecting the Other Half.
https://www.broadbandcommission.org/Documents/publications/wef2018.pdf
A “Digital Infrastructure Moonshot” for Africa 59
Figure 4.1. Mobile Broadband Penetration in Africa by Country, 2018
TUNISIA
60%
MOROCCO
47%
ALGERIA LIBYA ARAB. REP. OF
WESTERN 88% 83% EGYPT
SAHARA 38%
CABO
VERDE MAURITANIA
79% 45% MALI
40% NIGER
8% SUDAN ERITREA
SENEGAL CHAD 35% 17%
37% 11%
THE GAMBIA BURKINA FASO DJIBOUTI
53% GUINEA- GUINEA 26% 17%
BISSAU 16% BENIN
18% NIGERIA
25% COTE 29% ETHIOPIA
SIERRA D’IVOIRE GHANA
30%
CENTRAL AFRICAN SOUTH SUDAN 16%
LEONE 30% REPUBLIC 5%
38% LIBERIA TOGO EQUATORIAL CAMEROON 14%
15% 25% GUINEA 17% SOMALIA
3% UGANDA 13%
14% KENYA
SÃO TOMÉ AND GABON REP. OF RWANDA 35%
PRÍNCIPE 65% CONGO
13%
11%
73% DEM. REP. OF
CONGO BURUNDI
14% 14% SEYCHELLES
TANZANIA 65%
13%
COMOROS
0%
Broadband Penetration ANGOLA
42% MALAWI
in Africa, 2018 ZAMBIA 13%
Less than 25% 13%
MAURITIUS
25% to 49% ZIMBABWE MOZAMBIQUE MADAGASCAR 65%
52% 23% 13%
50% to 74% NAMIBIA
83% BOTSWANA
75% and above 68%
ESWATINI
41%
LESOTHO
SOUTH AFRICA 46%
53%
• Regional average: 31% (2018 estimate)
• Estimates based on GSMA, UN, Xalam Analytics data.
• Penetration based on unique users and
target population aged 10 and above.
• Broadband is defined as average download speeds of 256 Kbps
or greater while the target download speeds by 2021 is 3 Mbps.
* Disclaimer: Figures may differ from the actual level of penetration and information available on other sources.
Note the key assumptions underpinning the 2021 target for details.
This map was produced by the cartography unit of the World Bank Group. The
IBRD 44575 boundaries, colors, denominations and any other information show on this map
JULY 2019 do not imply, on the part of the World Bank Group. any judgment on the legal
status of any territory, or any endorsement or acceptance of such boundaries.
60 Broadband Commission Working Group on Broadband for All
Figure 4.2. 4G Mobile Broadband Penetration in Africa by Country, 2018
TUNISIA
27%
MOROCCO
23%
ALGERIA LIBYA ARAB. REP. OF
WESTERN 33% 11% EGYPT
SAHARA 22%
CABO
VERDE MAURITANIA
0% 0% MALI
6% NIGER
0% CHAD
SUDAN ERITREA DJIBOUTI
SENEGAL 8% 0% 0%
3% 2%
BURKINA FASO
THE GAMBIA 0%
3% GUINEA- GUINEA
BISSAU 0% BENIN
NIGERIA
0% COTE GHANA 4% 4% ETHIOPIA
SIERRA D’IVOIRE 4% CENTRAL AFRICAN SOUTH SUDAN 1%
LEONE 11% REPUBLIC 0%
6% LIBERIA TOGO EQUATORIAL CAMEROON 3%
3% 2% GUINEA 5% SOMALIA
0% UGANDA 5%
9% KENYA
SÃO TOMÉ AND GABON REP. OF RWANDA
8%
PRÍNCIPE 59% CONGO
13%
1%
0% DEM. REP. OF
CONGO BURUNDI
0% 2% SEYCHELLES
TANZANIA 40%
6%
COMOROS
Broadband Penetration 0%
ANGOLA MALAWI
in Africa, 2018 13% 2%
ZAMBIA MADAGASCAR
Less than 5% 3% 5%
5% to 14% MOZAMBIQUE MAURITIUS
ZIMBABWE 30%
7% 0%
15% to 29% NAMIBIA
35% BOTSWANA
30% and above 30%
ESWATINI
5%
LESOTHO
SOUTH AFRICA 10%
32%
• Regional average: 9% (2018 estimate)
• Estimates based on GSMA, UN, Xalam Analytics data.
• Penetration based on unique users and
target population aged 10 and above.
• Broadband defined as average download speeds of
10 Mbps or greater.
* Disclaimer: Figures may differ from the actual level of penetration and information available on other sources.
Note the key assumptions underpinning the 2030 target for details.
This map was produced by the cartography unit of the World Bank Group. The
IBRD 44576 boundaries, colors, denominations and any other information show on this map
JULY 2019 do not imply, on the part of the World Bank Group. any judgment on the legal
status of any territory, or any endorsement or acceptance of such boundaries.
A “Digital Infrastructure Moonshot” for Africa 61
Key Findings
Investment Requirements to Achieve the 2021 Milestone
In order to double broadband 2018, countries in SSA would need to
connectivity by 2021, the baseline add about 70 million new broadband-
broadband penetration of the target connected users by 2021, that is, about
population in Africa would have to 70 percent of the overall regional target.
increase from about 18 percent in 2016
to about 36 percent by 2021. This would It is estimated that about $9 billion in
mean bringing about 220 million new investment would be required to double
people online. broadband connectivity penetration in
Africa by 2021 (see figure 4.3).33
Considerable progress has already been Access network infrastructure (using
made towards this target. It is estimated mobile infrastructure as a proxy) capital
that about 120 million new users were expenditure (CapEx) would account for
connected between 2016 and 2018, about half of the required investment.
bringing broadband user penetration in Including recurring network maintenance
the region to about 31 percent in 2018. costs, some 75 percent of the required
However, growth rates are slowing. To investment is directly tied to the need
achieve the proposed 2021 target, a to roll out and maintain broadband
further 100 million new broadband users networks in areas not currently served
must be connected across the continent. by a mobile broadband signal, and to
Furthermore, there are still a significant support the additional connected user
number of countries in Africa below the base and related traffic.
20 percent penetration target, with many
in a fragile situation32, that will be at risk Doubling broadband penetration
of lagging further behind in the context also implies a significant uptake of
of accelerating digitization across the penetration in areas already covered
continent: there were 31 countries below by broadband networks, through legal
the 20 percent broadband penetration and policy reforms aiming at increasing
mark in 2016, and 22 countries in 2018. accessibility, awareness, affordability,
relevance, safety and security as well
The country distribution of investment as the level of digital skills through
requirements to achieve the 2021 capacity building programs. In this
milestone is a function of several regard, countries should adopt the
factors, including (though not limited MFD approach by promoting market
to): current penetration levels, market competition and leveraging all sources
size, literacy, income, expected costs, of finance, expertise, and solutions
perceived investment risks and existing with the aim of removing entry barriers,
levels of broadband network coverage. demonopolizing industry segments and
It is estimated that the 49 countries in increasing competition while building
Sub-Saharan Africa (SSA) account for institutions for long-term sustainability to
about 83 percent of the region’s target enable private investment and eliminate
population. However, on average, about existing constraints. About 20 percent
a third of the SSA population remains out of the required investment is tied to the
of reach of mobile broadband networks need to build the user skills and local
(compared to about two percent in content foundations to ensure that the
North Africa). With average broadband deployed infrastructure is effectively
penetration of about 26 percent in used. A further five percent would need
32. https://www.worldbank.org/en/topic/fragilityconflictviolence/brief/harmonized-list-of-fragile-situations
33. This figure excludes investments made between 2016 and 2018.
62 Broadband Commission Working Group on Broadband for All
to be allocated to building adequate investment requirements to double
policy and regulation frameworks. broadband connectivity penetration by
Research has shown that investments in 2021 from 2016 levels (see figure 4.4).
policy and regulatory frameworks reform With the foundational infrastructure
has been extremely limited and urgently largely in place in North Africa,
need to be increased to ensure required requirements primarily concern the
technical support and capacity building.34 need to increase broadband network
density, enhance digital skills, and build
At the subregional level, SSA accounts the market conditions for broad-based
for about 73 percent of estimated access.
Figure 4.3. Investment Needed to Double Broadband Penetration
in Africa by 2021
~$9BN IS NEEDED TO DOUBLE BROADBAND ON CONNECTIVITY
PENETRATION BY 2021 (FROM 2016 LEVELS)
$10.0
ICT Skills • ~$9bn will be needed to double broadband
Total Requirements
& Content connectivity levels in Africa by 2021, from
2016 levels;
$9.0 ~$1.7bn • Countries will need to add ~100m
connected broadband users to achieve the
proposed targets;
$8.0 • We estimate that achieving this target
Policy & would require the rollout of ~65k to 70k
3G and 4G BTS across the region
Regulation Costs
$7.0
~$0.5bn • Doubling broadband connectivity over
the next three years is predominantly an
infrastructure challenge; we estimate that
$6.0 mobile infrastructure CapEx would account
for slightly more than half of required
Network Operation investment costs.
$5.0 & Maintenance • Including recurring network repair and
Key Drivers of Investment
~$2.0bn maintenance costs, ~75% of required
investments are directly tied to the need
$4.0 to roll out and maintain broadband
networks to support the additional
connected user base and related traffic;
CapEx for Network • Around 20% of required investments are
$3.0 Backhaul tied to the need to build the user skills
and local content foundation to ensure
~$0.5bn that the deployed infrastructure is used
$2.0 adequately, in a manner that would support
its long-term viability;
• We estimate that around 5% of
Mobile required investments would need to be
$1.0 allocated to building adequate policy
Infrastructure CapEx and regulation frameworks, to increase
~$4.5bn competition, drive down pricing, or
$0.0 improve affordability.
Source: Xalam Analytics estimates.
Note: Mobile infrastructure is used as a proxy for access network infrastructure.
34. A4AI: https://a4ai.org/closing-the-investment-gap-the-critical-role-of-development-banks-to-advance-digital-inclusion/
A “Digital Infrastructure Moonshot” for Africa 63
Figure 4.4. Relative Size of Investment Needed by Country to Double
Broadband Connectivity by 2021
KENYA SOMALIA UGANDA
SUDAN
MADAGASCAR ANGOLA SOUTH SUDAN ZIMBABWE
EGYPT MOROCCO NIGER
REP. CONGO MAURITANIA CHAD TOGO
MOZAMBIQUE
CONGO, DEM. REP. SIERRA
LEONE ZAMBIA GUINEA ERITREA
TUNISIA
LESOTHO NAMIBIA
MALAWI BENIN
LIBYA TANZANIA CENTRAL SENE
AFRICAN GABON GAL BOT..
REPUBLIC
SOUTH AFRICA GHANA ETHIOPIA CAMEROON BURUNDI
NIGERIA RWANDA LIBERIA
Investment Requirements to Achieve the 2030 Target
Achieving universal, affordable and good in the period 2019-2030 would be
quality access to broadband connectivity almost $80 billion.36 This investment
is a considerable challenge. Using the amount also includes costs to roll out
10 Mbps download speed definition for the next generation networks such as
broadband, nearly 830 million people 5G and to enhance QoS, that is, not all
were still unconnected to high-speed the $80 billion CapEx is being planned to
broadband networks in Africa as of 2018. be dedicated to extend the broadband
To achieve universal and affordable access. It would also require rolling out
access to good quality broadband, innovative satellite, Wi-Fi based solutions,
African countries will need to connect or other innovative solutions to reach
nearly 1.1 billion new unique users by an estimated population of nearly 100
2030. It is estimated that additional million that live in remote rural areas that
investments of about $100 billion would are currently out of reach of traditional
be needed to reach this goal over the cellular mobile networks.
next decade, or close to $9 billion a year
(see figure 4.5). Therefore, infrastructure investment
requirements are substantial. It is
Connecting 1.1 billion new users by estimated that nearly 80 percent of
2030 is unquestionably a significant all required investments are directly
infrastructure undertaking. It would related to the need to roll out and
require the deployment of nearly maintain broadband networks to
250,000 new 4G base stations and at support the additional connected base
least 250,000 kilometers of fiber across and associated traffic. Further, within
the region. Between 2019-2025, mobile this amount, at least 15- 20 percent of
operators in Africa are expected to invest infrastructure investment is associated
approximately $45 billion in network with the cost of connecting users in
CapEx.35 If similar levels were maintained remote rural locations.
to 2030, then total network investment
35. Source: GSMA Intelligence. Annual CapEx is based on exchange rates as of Q1 2019 to avoid exchange rate fluctuations and
forecasting. Total mobile operator CapEx in Africa in 2019-2025 is estimated to be about $70 billion. In order to estimate the
proportion of this that is spent on networks, a network proportion of 65 percent is assumed.
36. This investment does not include spectrum acquisition and renewal costs, which in many countries can be significant.
64 Broadband Commission Working Group on Broadband for All
In addition, the analysis points to the recurring network operation and
considerable weight of recurring costs maintenance or operational expenditure
on overall investment requirements. (OpEx), underscoring the importance
More than half of the projected of developing viable standalone or
cumulative infrastructure costs to subsidized economic models.
achieve universal access relate to
Figure 4.5. Investment Needed to Achieve Universal Access to Broadband
Connectivity
~$100BN IS NEEDED TO ACHIEVE UNIVERSAL ACCESS
TO BROADBAND CONNECTIVITY IN AFRICA
$100.0
• Around $100bn will be needed to achieve
ICT Skills universal access to broadband connectivity in
& Content Africa by 2030
~$18.0bn • The challenge is considerable. Countries will
Total Requirements
need to add around 1bn new connected users
to 4G and other high-speed networks to achieve
the proposed targets
$80.0
• We estimate that achieving this target would
require the rollout of around 250k 4G BTS across
the region, depending on the nature of available
spectrum
Policy &
• Achieving the proposed network reach also
Regulation implies the rollout of around 250,000 kilometers
Costs of terrestrial fiber infrastructure, and potentially
$60.0 ~$2.4bn more depending on the favored backhaul
technology mix
• Achieving universal access to broadband in
Africa is, for the most part, an infrastructure
investment challenge. Around 30% of total
Network requirements would have to be allocated to
$40.0 CapEx build out for broadband last mile and
Key Drivers of Investment
Operation &
transmission networks capable of reaching and
Maintenance serving at least 90% of the target population
~$53bn • Including the recurring cost of operating and
maintaining such networks (another ~50%
of total), ~80% of required investments are
directly tied to the need to roll out and maintain
broadband networks to support the additional
$20.0 connected user base and related traffic
• Around 17% of required investments are tied
to the need to build the user skills and local
Infrastructure content foundation to ensure that the deployed
CapEx infrastructure is used adequately, in a manner
~$29.5bn that would support its long-term viability, with
the remaining 2%-3% allocated to regulation and
policy framework building
$0.0
Source: Xalam Analytics estimates.
Note: Operation and maintenance costs are assessed on a cumulative basis over a 12-year period (2018-30).
A “Digital Infrastructure Moonshot” for Africa 65
Figure 4.6. Relative Size of Investment Needed by Country for Universal
Access by 2030
NIGER ALGERIA MOROCCO
UGANDA
MOZAMBIQUE GHANA BURKINA FASO CAMEROON
ETHIOPIA EGYPT
SOUTH AFRICA
ZAMBIA SOUTH SUDAN ZIMBABWE
CHAD
CÔTE D’IVOIRE
BURUNDI BENIN TUNISIA
TANZANIA
RWANDA
SUDAN SIERRA
LEONE
SENEGAL
MADAGASCAR
SOMALIA
LIBERIA
TOGO
NIGERIA CONGO, DEM. REP. KENYA ANGOLA MALAWI MALI GUINEA LIBYA
Connecting the unconnected is about The investment challenge appears
more than just infrastructure. About especially difficult in Sub-Saharan Africa.
20 percent of required investment SSA accounts for nearly 90 percent of
concerns the need to build the user estimated investment requirements to
skills and local content foundations to achieve universal access to broadband in
ensure that the deployed infrastructure the region (see figure 4.6). With average
is used adequately, in a manner that broadband penetration of about seven
would support its long-term viability. percent in 2018 (based on 10 Mbps
Another two to four percent of speeds), countries in SSA would need to
investment will have to be allocated to add about 900 million new broadband-
building adequate policy and regulation connected users by 2030, more than
frameworks to create market conditions 85 percent of the overall regional
that foster technology deployment, the target (see figure 4.7). While there
development of a broader technology has been more significant progress in
ecosystem, and overall broadband North Africa, substantial efforts are also
service affordability. A framework for the needed to continue to improve access
development of adequate sector policy to connectivity and connect 130 million
and building digital skills is discussed new users. 4G networks only cover about
in more detail in chapters 5 and 60 percent of the population in North
6, respectively. Africa, leaving ample room for growth.
66 Broadband Commission Working Group on Broadband for All
Figure 4.7. Expected Broadband Penetration Growth (2018, 2021, 2030)
1,200
BROADBAND USERS - MILLION
1,000
800
600
400
200
0
SSA NORTH AFRICA
2018 2021 2030
Source: Xalam Analytics estimates.
Note: 2018 and 2030 based on 10 Mbps and faster; 2021 based on 3 Mbps and faster.
Five countries (Nigeria, the Democratic The requirements are also significant
Republic of Congo, Ethiopia, Tanzania, beyond this group of countries. About 10
and the Arab Republic of Egypt), three markets in the region have an estimated
of which are LDCs, account for about cumulative investment requirement of
46 percent of all the region’s projected about $2 billion; another dozen have
requirements (see figure 4.6). These broadband investment requirements
markets have large populations and of $1 billion or more, underscoring the
4G penetration levels which, while broad-based nature of the need for
improving, are still relatively low. Taken additional investment.
collectively, they will have an inordinate
impact on the probability of achieving
the presumptive targets.
Figure 4.8. Investment Needed to Achieve Universal Access to Connectivity
by Region
$100
$80
US$ BILLION
$60
$40
$20
$0
North Africa Sub-Saharan Africa
Source: Xalam Analytics estimates.
A “Digital Infrastructure Moonshot” for Africa 67
5
Policy and
Regulatory
Frameworks to
Enable Digital
Transformation
68 Broadband Commission Working Group on Broadband for All
Government policies and practices can This chapter presents an
significantly influence the development analytical framework and priority
and impact of universal, affordable, and recommendations for evaluation and
good quality broadband connectivity review, to guide the adoption of public
in a variety of ways. The optimal mix of policies in support of broadband
policies for any given country will vary infrastructure development objectives
depending upon a range of economic, under the Mobilizing Finance for
demographic, geographic, political, and Development approach. It highlights the
other factors. range of policy approaches that may be
considered, and the various aspects of
Nevertheless, there are certain core the infrastructure-supply components
principles and established good practices of the broadband ecosystem that can
that have proven effective in accelerating be influenced by such policies. It then
broadband growth and adoption across presents a high-level matrix of key
many different countries, regions, and priority options for governments to
economies. To support the development incorporate in their national broadband
and implementation of policy and strategies and matrixes of ICT sector
regulatory core principles and good reforms. This framework informs the
practices, the previous section of sequence of steps and actions to be
this strategy identifies the estimated identified in the strategy roadmap.
costs associated with those needs and
integrates these actions in the roadmap
to achieve the 2030 target. These costs
are estimated as a fixed percentage Public Policy Options
of the infrastructure costs for each
country. These targets can only be The array of public policy measures
achieved if proinvestment policies are that can be employed generally fall into
put in place that reduce the costs and several distinct categories, although
uncertainty around spectrum allocation there may be considerable synergy
and assignments, remove obstacles to across broadband policy initiatives.
network deployment, and promote best The following briefly summarizes
practices on tax policy. the key features of the main types of
policy options:
Public policy, legal, and regulatory
frameworks need to be up-to-date, • National ICT Policies and Digital
flexible, incentive-based and market Strategies: The basic foundation
driven to support digital transformation for establishment and promotion of
across all sectors and across the broadband, including national digital
continent’s regions. In this respect, strategies (holistic approaches to
policy makers and regulators need to digital development and planning)
keep pace with advances in technology, and policy principles, directives
address new regulatory challenges, and and targets for sector-specific
create the foundation upon which digital national ICT strategy as well as
transformation can achieve its general principles for competition
full potential. policy aiming to increase levels of
competition in the market.
A “Digital Infrastructure Moonshot” for Africa 69
• Laws, Legislation, Regulation:
Regulatory agencies, instruments,
Broadband Ecosystem
rules, decisions, and oversight, which Components
implement and enforce legal and
policy mandates, and govern overall Each of the above forms of policy
broadband/ICT sector performance. intervention can influence one or
more aspects of the overall broadband
• Public Funding, Investment: Direct ecosystem. As with all ecosystems, the
public funding of broadband projects various elements of the broadband
through various vehicles, including ecosystem are interdependent and
government subsidies and public mutually reinforcing. Ideally, governments
financing through public-private should, therefore, design coordinated
partnership (PPP) arrangements. Note national broadband strategies which
that public funding refers to funding will simultaneously influence multiple
managed by the government/public aspects of the ecosystem at the same
sector but largely provided by MDBs time, generating ripple effects which can
and other donors. become self-sustaining.
• Programs, Initiatives: Government- In general terms, there are four major
sponsored or supported programs interrelated components of the
to promote broadband awareness, broadband ecosystem: supply; demand;
adoption, and use, including economic impacts; and social impacts.
education and training. Each of these, in turn, comprises a
wide range of elements which can
• Government Adoption, be subject to stimulation, expansion,
Procurement: The role of investment, and strengthening through
government as a user of broadband policy initiatives – or conversely, which
in its operations at all levels, including can be inhibited through suppression,
network connectivity, procurement neglect, or misguided policies. While
of equipment and services, and the primary focus of this analysis is on
aggregation of government demand the supply of digital infrastructure, it is
and adoption across agencies. important to recognize that each of the
other ecosystem components plays an
• Taxation, Fiscal Policy: Tax, tariffs, important, mutually reinforcing role in
fees, and other fiscal policies that enabling and promoting infrastructure
affect costs and incentives for investment.
broadband service and equipment
suppliers, investors, entrepreneurs, The following summary highlights
and customers. An adoption of the some of the key elements of each
Information Technology Agreement aspect of the broadband ecosystem
(ITA) for tariff elimination has also which can be most influenced by
been proved to be effective in bring various policy, regulatory, and other
down the costs of digital devices.37 government strategies:
Supply:
Telecommunications and related ICT
infrastructure, networks, services, and
facilities, together with related hardware
and software, which deliver broadband
connectivity and capabilities to end-
users. These include:
37. See Information Technology Agreement — an explanation. https://www.wto.org/english/tratop_e/inftec_e/itaintro_e.htm
The ITA has had a positive impact on trade and the economy but not all participants have benefited from trade opening in the
same way. The costs associated with tariff elimination and market opening must be counterbalanced.
70 Broadband Commission Working Group on Broadband for All
• Backbone networks: High capacity An additional consideration for the
long-haul transmission networks, supply side is the need to facilitate
typically fiber optic, microwave, the entry of new and innovative
and/or satellite components, linking technological backhaul to last mile
national and international centers to solutions. Thus, policies should be
local distribution networks. technology-neutral and should also
be flexible enough to accommodate
• Telecommunications distribution new ways of providing backhaul (for
and service networks: All electronic example, low Earth orbit satellites), or
and transmission components that last mile solutions (for example, TV white
make up digital telecommunications spaces). This can include policies and
transmission networks and services, regulatory frameworks that are subject
from antennae and processing to periodic review.
facilities to back-office systems, and
also including the investments in Demand:
labor necessary to install and operate
such systems. End-user demand for and use of
broadband services and applications, and
• Supporting and passive the factors which determine willingness
infrastructure: Nontechnical and ability to pay for such capabilities:
components of ICT infrastructure
necessary to support and access • Relevance of services for consumers
communications transmissions, and awareness by consumers of
including roads, electrical power, as the opportunities and benefits of
well as poles and towers. advanced ICTs.
• Local access connectivity: Last-mile • Accessibility of services and products
wireless and wireline network access is key to ensure that all users,
connections which connect end-users regardless of circumstances, are able
to the national broadband network. to benefit fully from ICTs.
• Data centers, internet exchange • Affordability of services, devices, and
points (IXPs): Large-scale data applications for different classes of
storage and exchange facilities that users relative to incomes and needs.
improve data security and efficiency.
• Digital content and applications
• Devices, equipment: Computers, that are understandable (for
tablets, smartphones, servers, and all example, in native languages), of
related and peripheral hardware that relevance, interest, and value to
connect to and utilize broadband various user groups within the
networks, including the rapidly population, including women, people
growing range of machinery that with disabilities, entrepreneurs,
constitutes the Internet of Things (IoT). smallholder farmers, and so on.
• Software: The full range of operating • Digital literacy and skills: Citizens’
systems, end-user programs, ability to trust, utilize, understand and
personal computer and mobile take full advantage of the capabilities
applications, as well as content and of advanced ICTs in their lives, jobs,
services purchased and utilized and homes.
across the ICT universe.
A “Digital Infrastructure Moonshot” for Africa 71
Economic Impacts: • Broadband in health care:
Telemedicine, e-health programs,
Use and adoption of broadband- streamlined and efficient electronic
enabled ICT services in various forms patient records and monitoring
of economic activity, which drives systems, health education, and
investment, revenues, cost savings, awareness programs.
and overall economic growth, hence
justifying government intervention. • E-government services: Improved
efficiency, access to information,
• Entrepreneurial opportunities, which and citizen engagement via online
support the creation of new business government services.
models, including e-commerce and
online marketing. • Social media, entertainment:
Improvements in quality of life,
• E-finance, m-finance: Use of ICTs to cultural experience, family and
drive financial inclusion by providing community integration via digital
access to banking and digital financial communications and applications.
services, such as mobile money, to
expand payment, insurance, savings, • Political engagement, free
and credit options to all citizens. expression: Enhanced democratic
participation, awareness,
• Broadband in productive sectors accountability owing to expanded
such as agriculture and other information sources, involvement.
industries: Deployment of advanced
broadband ICT tools and applications • Environmental impacts, protection:
to promote more efficient operations Use of ICT-based tools, monitoring,
in the agriculture sector as well as alternative resources, information,
other key national industries. and innovations to improve
environmental conditions and
• Employment, training: Use of ICTs to awareness.
support worker training, especially in
technology-related skills, to improve
employment prospects.
Broadband Digital
Social Impacts: Infrastructure
Social benefits arising from adoption Policy Options
and use of broadband on a society-wide
basis, which improve citizens’ quality of Using the above framework of public
life, and drive both market demand and policy options in the context of the
political support for broadband policies.38 various ecosystem components, a matrix
can be developed which classifies the
• Broadband in education: range of options to promote needed
Enhancement of education through investment in digital infrastructure, to
distance-learning, ICT tools, teacher be aligned with other parallel policy
training, digital curriculum, and so on. initiatives and principles at the national
38. For relevant examples, see, http://connectaschool.org/?q=node/496; http://www.elearning-africa.com/pdf/report/
postreport_eLA2009.pdf; http://projects.worldbank.org/P131290/e-health-project?lang=en ; http://www.infodev.org/
articles/egovernment-handbook-developing-countries ; https://www.researchgate.net/publication/312120096_ICT_and_
Environmental_Sustainability_A_Global_Perspective
72 Broadband Commission Working Group on Broadband for All
and regional levels. Note that many principles which define the country’s
policies may be designed to influence approach to ICT sector development,
multiple factors at the same time. including a commitment to market-
The topics below offer a list of the oriented, competitive principles to
most significant potential options to encourage robust investment.
encourage and/or mandate various
forms of infrastructure investment and • Legal foundations of all
development opportunities. These are regulatory and other key policy
presented as a menu of options by institutions and mandates: specific
category within each group, but are not authorizations and parameters for the
an exhaustive list of all options. responsibilities of the (independent)
regulator and other offices, to
This approach requires a holistic ensure that they have the ability and
understanding of digital development, resources to oversee effective market
one where the ICT sector provides the investment, development, and
foundation to advance each sector competition.
of the economy. For this reason,
the government must embrace and • Legal mandates for access to
be committed to multistakeholder rights of way, with limitations on
collaboration during the policy local control, fees: requirements
formulation and decision-making that restrict the extent to which
steps in the process. This will ensure local authorities may impose
full support from stakeholders towards unreasonable, excessive, or
digital development. inconsistent costs or restrictions on
the build out of infrastructure.
National ICT policy and digital
strategies which sets broad • Licensing, market entry: Regulatory
practices to promote open
• National ICT policy and digital competitive market entry on a
strategies which sets broad nondiscriminatory basis, including
ICT development targets, roles, unified licenses, licenses to new
responsibilities for infrastructure and alternative operators, and reasonable
service expansion, while supporting licensing fees.
improved access to information
about the sector including the use • Spectrum: Spectrum allocation
of open data where feasible: such policies which favor competitive
a policy framework should provide access to frequencies, dynamic
guidelines for all other policy spectrum allocation, refarming, and
initiatives, while defining the broad availability for innovative services,
sector goals and linkage with other reasonable spectrum fees, ensuring
national development objectives and maximized efficiency of spectrum
policies. usage.
• Building trust in the digital • Infrastructure sharing, open
ecosystem, with protections against access: Rules supporting shared
online harms such as hate speech, access to passive and active
misuse of data, and interference in network infrastructure, including
wholesale and supporting network
democratic processes.
infrastructure providers (for example,
tower companies, wholesale fiber
Laws, Legislation, Regulation: optic operators), equitable cost
sharing, as well as access to excess
• Legislative framework mandating capacity on alternative fiber optic
open markets, private competition,
networks (alongside energy grids,
investment: General legislative
railways, and so on).
A “Digital Infrastructure Moonshot” for Africa 73
• Competition regulation: Regulatory • Local community networks:
principles and practices to promote Community-based
fair and equitable competition among telecommunications operators,
all service providers regardless of such as cooperatives or publicly or
physical location, including cost- cofunded local access services.
oriented interconnection charges,
prevention and enforcement of unfair • Public funding, construction of
competitive practices, regulation of supporting infrastructure: Funding
market dominance. programs and partnerships to build
out electrical power grids (including
• Consumer protection and quality clean energy initiatives), roads,
of service: regulatory principles and land, and buildings required to
practices to ensure that consumer support or enable ICT infrastructure
digital rights are protected (including investments.
privacy, security and personal data) and
minimum quality of service standards Programs, Initiatives:
are upheld (to guarantee broadband
access as defined in this strategy). • Public digital access center
programs: Facilities which provide
• Open data practices in sector free or low-price use of computers,
regulation: where possible to broadband connections, e-services,
support infrastructure mapping, and digital skills training available in
spectrum allocations, and better centralized public locations.
network planning.
• Public Wi-Fi access networks:
Public Funding, Investment: Transmitters/routers installed
in public locations to provide
• Public-private partnerships: broadband wireless signals covering
Contractual arrangements for wide areas, typically arranged in
government and private investors partnership with private internet
to cofund targeted infrastructure service providers (ISP) under contract
projects, such as international or with the government, which allow for
national backbone, data centers, and low-cost connection to broadband
other large investments. services, especially for those
unable to afford full mobile or fixed
• Universal service and access broadband subscriptions.
fund: Sector and donor financed
mechanisms, implemented by a • Public access digital facilities and
government agency to channel services at post offices, libraries,
subsidy funding toward economically government offices: Computers,
challenging, rural areas and support internet connections, kiosks, and
affordable services to expand e-government service portals
beyond the commercial market’s installed at facilities which citizens
limits. Such funding mechanisms frequently visit.
are critical and it is important to
support these agencies to increase • Government initiatives to reduce
their transparency and effectiveness administrative burdens: Streamline
through a consultation process with and harmonize administrative
all sector players and impact. procedures and approvals (for
example, a coordinating agency to
address all permits and authorizations
required at the different levels
of government).
74 Broadband Commission Working Group on Broadband for All
Government Adoption,
Procurement:
• E-government network:
Procurements of
telecommunications network
infrastructure and service,
establishing broadband connectivity
at government offices, including
wide area networks and extensions
to town and village centers, which
can also serve as “anchor tenants”
that can support costs of commercial
operators’ overall network
infrastructure deployment.
• Government services portals and
applications: Contracts to engage
experts to design, host, and operate
government online services and
information, utilizing broadband
connectivity (see box 5.1 for an
overview of digital public platforms).
• Government procurement of ICT
equipment and software: Bulk
purchases of computers, tablets,
servers, operating systems, data
storage capacity, and other various
IT resources for internal government
purposes across the public sector,
expanding the market for such
technology suppliers.
• Employ open contracting (that is,
making public contracts available
in an open data format). Providing
this kind of open data can improve
competition in the bidding process,
allow greater transparency in
the allocation of subsidies, and,
perhaps most importantly, make the
allocation of funds more efficient and
cost effective.39
39. Alliance for Affordable internet (A4AI). 2018. 2017
Affordability Report. A4AI.
https://a4ai.org/affordability-report/report/2017/
A “Digital Infrastructure Moonshot” for Africa 75
Box 5.1. Digital Public Platforms
Digital public platforms – which may be provided by the government or
through hybrid models in partnership with the private sector – serve as a
layer on which multiple public and private sector organizations can build new
or better services and solutions. These platforms include three foundational
components. First, digital ID systems and trust services facilitate secure
transactions between people, institutions, and devices. Second, interoperability
layers and shared services facilitate data exchange and leverage common
resources across disparate hardware devices, communication networks, cloud
providers, operating systems, applications, and interfaces. Finally, applications
for core government functions, digital service delivery and civic technology
(CivicTech) provide the technology and interfaces through which governments
deliver core functions and services and engage with the public. Together, these
core components create an integrated public platform that enables end-to-
end digital processes and transactions that are presence-less and paper-less.
Government agencies can then leverage this platform to transform front-end
service delivery and back-end processes to improve convenience for users,
reduce costs, increase efficiency, and support the social contract by making
governments more transparent, responsive, and accountable.
Source: African Union. 2019. The Digital Transformation Strategy for Africa (draft), June.
Taxation, Fiscal Policy:
• Adoption of the ITA to reduce the • Reasonable fees and taxes on
fiscal burden on the sector. ICT service providers, including
spectrum fees, income, and value
• Reduced import tariffs on all forms added taxes, to balance the goal
of ICT network-related equipment of government revenue with the
and materials needed to build objective of stimulating growth of the
out infrastructure, especially for digital economy.
high-cost components, including
consumer devices, that must be • Tax systems should be simple and
obtained from foreign suppliers. certain. Governments should seek
to limit unpredictable tax and fee
• Reduced or eliminated fees for changes, and streamline their levies
network operator access to rights- of taxes and fees (see box 5.2).
of-way, especially including uniform
and reasonable charges (and • Tax systems should be forward
streamlined procedures) from local looking, and designed for the digital
government authorities. era. The application of taxes should
not discriminate against locally based
service providers.
76 Broadband Commission Working Group on Broadband for All
Box 5.2. The Impact of Taxation on
Affordability
In order to close the digital gap and achieve universal access for everyone
on the continent, the issue of taxation must be dealt with in a holistic,
dispassionate, evidence-based manner. A holistic approach is particularly
important and necessary in attaining the UN Sustainable Development Goal 5
on gender equality and Goal 9c on ICTs and universal internet access, both key
to the discussion around taxation.
A4AI’s latest mobile broadband pricing data shows that Africans face the
highest cost to connect to the internet – just 1 GB of mobile data costs the
average user in Africa nearly nine percent of their average monthly income.
The reasons for this include a slowdown of policy improvements in access
and infrastructure. While governments must of course raise revenue to deliver
public services, any interventions in the ICT sector should be designed to
support economic growth and social inclusion.
A4AI’s recent research findings have shown that:
• An assessment of the impact of social media tax can prove beneficial for
governments prior to tax implementation. These holistic assessments can
demonstrate that taxes may in fact decrease internet use and have negative
spillover effects on the economy as a whole.
• Governments must pay particular attention to the impact taxes
have on women and other groups who are excluded from digital
spaces. The ability of people to pay the taxes depends largely on their
sociodemographic status. The taxes are therefore likely to deepen digital
inequality between the rich and the poor. In addition, one of the main
barriers keeping many women offline is skills. The taxes are likely to exclude
those who could most benefit from the ease of use of select services,
widening the digital divide between those with and without digital skills.
To prevent the digital divide from growing starker, telecommunications industry
leaders and stakeholders, including regulators, entrepreneurs, investors, and
civil society, must consider the impact of these taxes on the lowest income
earners, especially women, who are particularly affected. By focusing on a
multistakeholder and consultative approach to tackle this issue, policy makers,
industry, and civil society can collectively help in shaping regulation for a future
of improved connectivity rates and increased innovation.
Source: A4AI, https://a4ai.org/why-we-need-a-new-approach-towards-taxation-of-data-and-ict-services-
in-africa/
A “Digital Infrastructure Moonshot” for Africa 77
6
Digital
Skills and
Local Content
Development
78 Broadband Commission Working Group on Broadband for All
To reap the benefits of a fully digitalized content and knowledge that support
society, people must become digitally development opportunities, including for
literate, and the content online must women and girls. Closing the coverage
be relevant for all. In the 2018 GSMA gap on the continent by 2030 means
Intelligence Consumer Survey that that millions of citizens will access the
included selected African countries,40 internet for the first time. In this context,
a lack of literacy and digital skills was it will be critical to help people living in
identified as one of the most important newly covered areas to understand the
barriers preventing consumers from value of the internet and how to use it,
using the mobile internet.41 As such, as well as to build their digital resilience.
digital infrastructure investment ought Investing in promoting basic digital skills
to be complemented by investments will also be particularly important to
in developing digital citizens equipped ensure citizens democratically participate
with digital skills that prepare them as in their countries by equipping them
workers, producers, creators, innovators, with the necessary skills to access
as well as in producing the local content already existing or newly developing
to support such needs. Note that this e-government platforms and services.
section refers to digital skills education Moreover, to reach the 36 percent
necessary for basic digital literacy illiterate population on the continent,
and content creation and does not voice-based solutions and applications
include advanced education in the ICT should also be built as part of local
sector (that is, education necessary for content development.
someone to become a network engineer,
for example42). To reach the 2030 goal, in aggregate,
investment of $18 billion is needed
To bring nearly a billion new users in basic digital skills and content
online from the continent, the global development.43 Improving the ability
community must also invest in digital of people to use internet-based
skills and local content development – in technologies to access information
particular, in local language – as part of and increased training opportunities,
the effort to increase connectivity and and produce content, are some of
prepare people as active and informed the important elements of the DE4A
digital citizens. Given that most of initiative. Investment must come from
the population still offline are from all stakeholders – private companies,
marginalized groups, including women, governments, civil society, and
the poor, and rural communities, there international donors – to prioritize
is a need to invest in developing basic necessary policies and programs to
digital skills and supporting a local digital develop digitally ready populations,
ecosystem to increase relevant local for example, national governments
40. The seven countries were Algeria, Cote d’Ivoire, Kenya, Nigeria, Mozambique, Tanzania, and South Africa.
41. GSMA. 2019. The State of Mobile Internet Connectivity.
42. A strategy for advanced digital education is included in the Digital Skills pillar of the DE4A Initiative.
43. The estimated investment is based on basic training needed per new internet user ($15), along with an estimated local content
cost per user ($2). Basic digital literacy training was defined as short one-on-one or group training sessions in which new
users are provided the skills necessary to navigate the internet and to use commonly available local applications. See: World
Economic Forum. 2017. Internet for All: An Investment Framework for Digital Adoption. http://www3.weforum.org/docs/
White_Paper_internet_for_All_Investment_Framework_Digital_Adoption_2017.pdf; and http://www3.weforum.org/docs/
IFA_models_for_year.xlsx
A “Digital Infrastructure Moonshot” for Africa 79
sponsoring ICT educational and rural communities (see box 6.2 and
development programs for worker box 6.3). Indeed, the DE4A initiative
retraining, multilateral development has its own pillars on digital skills and
organizations investing in education digital entrepreneurship, which will
programs for vocational schools, civil complement the suggested strategy in
society organization implementing this document for broadband networks
digital skills education initiatives, and infrastructure. Proactive engagement
the private sector investing in local of UNESCO affiliated international
content development (see box 6.1). nongovernmental professional
Digital skills and content development organizations in science, engineering
programs should incorporate public- and technology should be utilized to the
and private-led interventions, as well full.44
as those targeted at women and girls
Box 6.1. Addressing Digital Skills and Local
Content
Based on WEF’s Internet for All investment model for digital adoption, two
barriers must be addressed to increase the number of internet users: digital
skills and local content. WEF recommends the following to overcome these
barriers:
1. To increase internet users, basic digital literacy must be improved by
facilitating formal and informal training programs targeting at least one
person per family.
2. To increase local content, supporting the digital content ecosystem is
key. Studies show that tech hubs in emerging markets have an impact on
fostering local ICT companies.
Source: World Economic Forum. 2017. Internet for All: An Investment Framework for Digital Adoption.
http://www3.weforum.org/docs/White_Paper_internet_for_All_Investment_Framework_Digital_Adop-
tion_2017.pdf; and http://www3.weforum.org/docs/IFA_models_for_year.xlsx; Sambuli, N. and J. P.
Whitt. 2017. Technology Innovation Hubs and Policy Engagement: Making All Voices Count. Research
Report. Brighton: Institute of Development Studies, https://opendocs.ids.ac.uk/opendocs/bitstream/
handle/123456789/12860/RReport_TechHub_Online.pdf
44. For example, the World Federation of Engineering Organizations (WFEO) with 30 million professional engineers worldwide,
the InterAcademy Partnership of some 130-national academies of science, engineering, and medicine, and the International
Science Council of international scientific unions and scientists in natural and social sciences are committed to helping
humankind achieve the SDGs through science, engineering, and technology.
80 Broadband Commission Working Group on Broadband for All
Box 6.2. Closing the Digital Skills
Gap for Nigerian Women and Girls
Girls and women in Nigeria are 40 percent less likely to have access to the
internet than men, and support from the government and private sector is
critical in closing this gap. Driven by Nigeria’s National Broadband Plan (2013-
2018), which envisioned a highly connected society and views access to
broadband as a key factor in facilitating socioeconomic development for the
country and its people, the Ministry of Communications led the Growing Girls
and Women in Nigeria program. The initiative supported projects that bridged
the gender gap in digital access and empowerment, such as:
• Smart Woman Nigeria was an online network of women in Nigeria who
received important information about topics such as health, education,
and agriculture via their mobile phones. This initiative enabled rural and
less privileged women to access information to help them meet their
socioeconomic needs (for example, information about health, education,
agriculture, and so on).
• Digital Girls ICT focused on developing ICT interest and skills among
secondary school girls through their participation in digital clubs that
included exposure to cutting-edge training in ICT skills. Though women
represent more than 50 percent of Nigeria’s population, they occupy fewer
than 20 percent of ICT jobs in the country. Digital Girls Clubs encouraged
young girls to embrace ICT in order to bridge the existing digital divide
between men and women.
• Nigeria Federal Ministry of Communication and Huawei’s 1000 Girls
leveraged a PPP with an ICT company to train 1,000 girls in practical ICT
skills and knowledge to increase employability.
Source: Paradigm Initiative, https://paradigmhq.org/offline-and-silent-new-report-shines-light-onto-re-
ality-of-womens-internet-use-in-nigeria-womensrightsonline/; Federal Ministry of Communications,
http://www.commtech.gov.ng/Doc/The%20Nigerian%20National%20Broadband%20Plan%20
2013_19May2013%20FINAL.pdf; Alliance for Affordable internet (A4AI), 2015-16 Affordability Report,
https://a4ai.org/affordability-report/report/2015/
A “Digital Infrastructure Moonshot” for Africa 81
Box 6.3. Technology Bootcamp Empowers
Young Tanzanian Women
To address the gender digital divide and ensure that women are provided an
opportunity to develop as successful entrepreneurs, the African Technology
Foundation conducted a series of technology bootcamps for women at the
University of Dar es Salaam, Tanzania. Implemented in partnership with the
College of Information and Communication Technologies (CoICT) at the
University of Dar es Salaam, Buni Divas, and Help to Help, the bootcamp was
designed to achieve the following:
• Give female students studying at higher education institutes in Tanzania
computer skills training and an introduction to online learning tools to
meet the needs of universities as well as future employers.
• Train young Tanzanian women to become technology ambassadors,
who can teach basic computer skills to fellow students, as well as in their
home and business communities, with a focus on expanding into rural
communities.
• Encourage employers in Tanzania to increase their hiring quota for skilled
women, and to design roles based on realistic workplace challenges.
Bootcamp participants were trained and then tested on their basic computing
skills. They were introduced to various elements of basic computing,
including word processing, presentation technologies, coding, and software
development, and a number of women were invited to develop and present
their ideas for potential new business startups.
Source: Alliance for Affordable Internet (A4AI), 2015-16 Affordability Report, https://a4ai.org/affordability-re-
port/report/2015/; African Technology Foundation, http://www.thea25n.com/; College of Information and
Communication Technologies (CoICT), http://www.coict.udsm.ac.tz/; Buni Diva; and Help to Help.
82 Broadband Commission Working Group on Broadband for All
A “Digital Infrastructure Moonshot” for Africa 83
7
Targeted
Approach
for Device
Affordability
84 Broadband Commission Working Group on Broadband for All
Affordability remains one of the main models and policy initiatives, and how
challenges in addressing the global interventions that lower costs can be
digital divide. Respondents to national balanced with maintaining equity in the
surveys typically report the high cost user experience.
of internet access (for example, mobile
data plans) as one of the main barriers
to getting online.45 In Africa, on average,
1 GB of mobile data costs eight percent Affordability of Devices
of monthly income, well above the “1 for
2” affordability threshold, where 1 GB of Device affordability across the world
mobile data should cost no more than mirrors mobile broadband affordability,
two percent of the average income.46 where those in higher income countries
are better off on average. The region that
The relatively high costs of getting online faces the greatest challenge in terms of
also include the costs of purchasing a the affordability of an entry-level mobile
mobile device. As highlighted before, device (that is, the cheapest device
mobile is the most common form of available that supports at least basic
broadband connectivity in Africa. In internet applications such as browsing
2018, the median cost of an entry-level and social media) is Sub-Saharan Africa
internet-enabled device in Africa was (see figure 7.1). The combination of
40 percent of monthly income,47 and expensive entry-level mobile data
the mean average was 62 percent of plans and entry-level devices keep the
monthly income. For the poorest 20 majority of people in the region offline.
percent of the population, the average For example, in an A4AI analysis using
cost of a device in Sub-Saharan Africa mobile broadband prices from 60 low-
was 375 percent of monthly income in and middle-income countries, when
2018. Furthermore, the affordability of the price of a hypothetical, low-cost
devices has not significantly improved smartphone ($48) was added to that of
in most African countries between a 500 MB broadband plan, in almost all
2016 and 2018.48 Thus, although there countries the number of people that
is justifiably a significant focus on the could afford both a broadband plan and
relatively high cost of mobile data plans, a low-cost smartphone fell on average
device costs are equally important. by 20 percent.49
This chapter explores the extent to which
device costs are part of the affordability An additional concern is the mobile
challenge, how device costs can be gender gap (that is, the extent to which
reduced through innovative business a woman is less likely to use the mobile
45. World Wide Web Foundation. 2015. Women’s Rights Online: Access into Empowerment. Washington, DC: World Wide Web
Foundation. https://webfoundation.org/research/womens-rights-online-2015/; After Access. 2018. “The Inside internet Story
of Africa, Asia, and Latin America,” http://afteraccess.net/wp-content/uploads/After-Access-Website-layout-r1.pdf ; https://
webfoundation.org/research/womens-rights-online-2015/ ; https://webfoundation.org/research/womens-rights-online-2015/
46. A4AI. 2019. “New Mobile Broadband Pricing Data Shows Uneven Progress on Affordability,” 20 March, https://a4ai.org/new-
mobile-broadband-pricing-data-reveals-stalling-progress-on-affordability/
47. GSMA Intelligence analysis of pricing data provided by Tarifica. GDP per capita data is sourced from the IMF.
48. GSMA.2019. The State of Mobile Internet Connectivity.
49. A4AI. 2015-16 Affordability Report. https://a4ai.org/affordability-report/report/2015/.A4AI, 2015-16 Affordability Report.
A “Digital Infrastructure Moonshot” for Africa 85
internet compared to a man). In Sub- higher when overall penetration rates
Saharan Africa, this gap is estimated to are low.52 However, as more expensive
be 41 percent – only South Asia as a smartphones enter the market, we may
region has a higher gender gap in mobile continue to observe a persisting gender
internet use.50 In Africa, affordability is gap in mobile phone ownership and
the highest barrier to mobile ownership.51 mobile internet use, driven in part by the
Note that the gender gap has also underlying gender wage gap in almost
evolved over time as it is typically all countries.53
Figure 7.1. Affordability of Entry-Level Device in Low- and Middle-Income
Countries by Region
375%
269%
89% 96%
88% 81%
64% 64%
24% 33% 22%
16%
EAST EUROPE LATIN MIDDLE EAST SOUTH SUB-
ASIA & AMERICA & NORTH ASIA SAHARAN
& CENTRAL & CARIBBEAN AFRICA AFRICA
PACIFIC ASIA
Price as % of Price as % of monthly GDP, lower High-income
monthly GDP income quintile avarage
Source: GSMA. 2019. Connected Society. The State of Mobile Internet Connectivity.
Note: Score based on normalized price of an entry level internet enabled mobile device (higher score means
more affordable devices).
50. GSMA. 2019. Connected Women: The Mobile Gender Gap Report 2019. London: GSMA. https://www.gsma.com/
mobilefordevelopment/wp-content/uploads/2019/03/GSMA-Connected-Women-The-Mobile-Gender-Gap-Report-2019.pdf
51. GSMA. 2019. Connected Women: The Mobile Gender Gap Report 2019. London: GSMA. https://www.gsma.com/
mobilefordevelopment/wp-content/uploads/2019/03/GSMA-Connected-Women-The-Mobile-Gender-Gap-Report-2019.pdf
52. Gillwald, Alison, and Onkokame Mothobi. 2019. After Access 2018: A Demand-Side View of Mobile Internet From 10 African
Countries. Cape Town: Research ICT Africa. https://researchictafrica.net/wp/wp-content/uploads/2019/05/2019_After-
Access_Africa-Comparative-report.pdf
53. WEF. 2018. The Global Gender Gap 2018. Geneva: World Economic Forum. https://www.weforum.org/reports/the-global-
gender-gap-report-2018
86 Broadband Commission Working Group on Broadband for All
The challenge for any major initiative similar form and look to a feature phone
that seeks to double broadband access but include hardware and operating
in a short timeframe, particularly one systems that can support broadband
that relies on mobile internet use as is internet access and use similar to
the case in Sub-Saharan Africa, must smartphones. Crucially they are much
also consider ways to improve device cheaper than smartphones, and their
affordability. The following section manufacturers argue that they can
reviews several existing initiatives that provide an important bridge to the future
aim to achieve this. adoption of smartphones and internet
services.
One of the potential limitations of a
New Business Models smart-feature phone is that the globally
to Lower Device Costs and nationally dominant Android
operating system (OS) is designed for,
While smartphones remain expensive, and works best on, a smartphone.
feature phones or dumbphones (that Thus, Android’s dominant operating
is, mobile devices that primarily provide system means there are few viable
voice and SMS services but with only alternatives for smart-feature phones.
limited features of a smartphone such In 2015 Mozilla and Orange partnered
as smaller displays, less processing to offer a $40 phone56 (with included
power, and often only General Packet data and voice minutes) running on
Radio Service (GPRS)/Enhanced Firefox OS in 11 African countries, but
Data rates for GSM Evolution (EDGE) this venture only lasted a year as it faced
connectivity) are much more affordable. several challenges including difficulty in
When considering prices of entry-level competing with Android.
internet-enabled handsets in U.S. dollars,
the median price in low- and middle- Some companies working on producing
income countries since 2016 has been low-cost devices (including smart-
just over $45; in Africa, it has been feature phones) include UNISOC
slightly less at $35-40.54 Indeed, sales (part of Tsinghua Unigroup), Huawei,
of these devices are growing globally SICO from Egypt, and KaiOS (see box
and are driven by the demand for more 7.1).57 Interviews in May 2019 with
affordable devices.55 The challenge, representatives from such firms noted
of course, is that feature phones by that the key price point for a mobile
definition do not support the same device that will be affordable for those
broadband connectivity experience as a currently offline is about $15-20.
smartphone. However, this implies a low profit margin
for the manufacturer. Strong partnerships
To address both the affordability between the device manufacturer and
challenge and the need for a better user mobile network operator are therefore
experience, some device manufacturers needed to ensure viability, such as KaiOS’
and their partners have developed smart- current engagement with MTN in Nigeria.
feature phones. These devices have a
54. GSMA. 2019. The State of Mobile Internet Connectivity. This price range is consistent with previous research; see, for example,
GSMA. 2017. Accelerating affordable smartphone ownership in emerging markets.
55. Counterpoint. 2019. “SmartFeature Phone A $28 Billion Opportunity in Next Three Years.” 18 February.
https://www.counterpointresearch.com/smart-feature-phone-28-billion-opportunity-next-three-years/
56. Shankland, Stephen. 2015. “Firefox OS comes to Africa with Orange’s $40 package deal.” 1 March.
https://www.cnet.com/news/firefox-os-comes-to-africa-with-oranges-40-package-deal/
57. See https://economictimes.indiatimes.com/industry/telecom/telecom-news/working-with-indian-telcos-to-bring-more-
affordable-phones-unisoc/articleshow/64663860.cms; https://uk.reuters.com/article/us-egypt-economy-sico/egypts-first-
smartphone-maker-sees-market-share-rising-by-2020-idUKKBN1JS20E
A “Digital Infrastructure Moonshot” for Africa 87
Box 7.1. KaiOS: Affordable
Smart-Feature Phones
A new low-cost phone was introduced in India in 2017: the Jio Phone, which
costs about $23 to produce compared to the typical entry-level smartphone at
the time, which cost almost twice as much to produce at $55. The Jio Phone
was based on a novel and alternative OS to Android that is optimized for smart-
features phones: KaiOS.
KaiOS enabled mobile operator Jio to offer content and other over-the-top
services through its native app store and on its 4G network. Such services were
key in bolstering the business case for a smart-feature phone. While the typical
quarterly average revenue per user (ARPU) for 2G feature phones was $0.45,
the quarterly ARPU for Jio Phone users was $2. To maximize the opportunity
for data services, Jio subsidized the cost of the device on its launch and priced
it at $20. Thus, Jio’s business model was to overcome the device affordability
challenges through a more affordable 4G alternative to smartphones, with a
focus on mobile data services to consumers. More recently, KaiOS partnered
with MTN Group and Orange to offer similar $20 phones in Nigeria, Rwanda,
and other places in Africa.
One concern, however, is the potential for vertical integration by a dominant
mobile network operator which could potentially offer exclusive content
services on its network only. In the case of India, Jio controls almost 50
percent of the mobile broadband market in India.
Source: Counterpoint; Shira Ovide. 2019. “The Next Big Phones Could Bring a Bil-
lion People Online.” 7 June. https://www.bloomberg.com/news/features/2019-06-07/
the-next-big-phones-could-bring-a-billion-people-online;
A4AI. 2016. The Impacts of Emerging Mobile Data Services in Developing Countries.
https://1e8q3q16vyc81g8l3h3md6q5f5e-wpengine.netdna-ssl.com/wp-content/uploads/2016/11/Mea-
suringImpactsOfMobileDataServices_ResearchBrief3.pdf;
GSMA Intelligence, Q1 2019 data, https://www.gsmaintelligence.com/data/
Another way of addressing the The availability of transparent, easy to
affordability barrier for devices is the understand, and low-credit payment
availability of payment plans. While plans could therefore represent a
in the majority of high-income post- significant opportunity to enable the
paid markets consumers have the unconnected to acquire an internet-
opportunity to purchase a device in enabled device. There are an increasing
monthly instalments, this option is number of examples of such offers,
often not available to potential mobile including Safaricom’s Maisha Ni Digital
internet users in Africa, meaning that Campaign in Kenya.58
they face a significant one-off purchase.
58. See http://biasharaleo.co.ke/index.php/2019/04/23/third-edition-of-safaricoms-maisha-ni-digital-campaign-launched/
88 Broadband Commission Working Group on Broadband for All
Public Policy Impacts almost $400 million was estimated to be
unspent), lacked transparency, and also
on Mobile Device Costs had little if any focus on women.61 One of
the challenges of any targeted approach
The high cost of devices as a barrier using public funds (including those that
to internet use is also recognized by focus on women) is its political feasibility.
governments. However, there are few, if Where this is a concern, government can
any, examples of government programs instead target broader groups such as
that focus on subsidizing mobile devices rural farmers who are also more likely to
on the continent. That said, we can still be women.
draw on experiences elsewhere. For
example, in 2016 Colombia launched In addition to implementing targeted
the Internet Móvil Social para la Gente59 approaches, governments should also
program to increase ICT access and assess existing policies, particularly
use in the country, particularly among with regard to taxation. In many African
low-income communities. This program countries, devices are subject to value
was part of an overall package of added tax (VAT) as well as luxury taxes,
welfare services targeted at people with customs duties, or excise taxes on the
low incomes. In addition to offering value of the device.62 The combined
reduced prices for mobile data, eligible effect of such taxes can be significant
participants could also purchase a in terms of the impact on economic
smartphone at a subsidized price. This productivity and achieving universal
approach can also be applied to other access. One study on the ICT taxation
devices including computers and laptops, regime in Mozambique found that
as is the case in Costa Rica.60 reducing custom duties on mobile
devices (as well as other devices and
In these examples, the resources to equipment) could increase GDP by
support these programs came from about $443 million over four years.63
universal service and access funds This economic growth would result
(USAFs); in most countries, however, from the expected increased uptake in
these funds are typically underutilized. mobile phone and ICT use. While there
More efficient and targeted use of these are few examples of governments rolling
USAFs could, therefore, help improve back taxation, one change from Kenya is
device affordability, especially among instructive. In 2009, the government of
those least likely to use the internet. In Kenya decided to remove the imposition
the case of Africa this would include of VAT on mobile handsets, which was
women. Unfortunately, a recent study correlated with an estimated increase
showed that USAFs on the continent in the mobile penetration rate from 50
dispersed funds inefficiently (indeed percent to 70 percent.64
59. Colombia Ministry of Information Technology and Communications. 2018. “Internet móvil para los colombianos más
necesitados,” 1 September. https://www.mintic.gov.co/portal/604/w3-article-16860.html
60. Sutel. 2016. Rendición de cuentas y transparencia. https://sutel.go.cr/sites/default/files/informes_fonatel/fonatel_informe_
anual_de_transparencia_y_rendicion_de_cuentas_fonatel_2016.pdf
61. A4AI. 2018. 2018 Affordability Report. https://a4ai.org/affordability-report/report/2018/
62. GSMA. 2019. Rethinking Mobile Taxation to Improve Connectivity. London: GSMA. https://www.gsmaintelligence.com/
research/?file=8f36cd1c58c0d619d9f165261a57f4a9&download
63. A4AI. 2015. Driving Economic Growth in Mozambique: Recommendation for Strategic Taxation for Telecommunications. https:
//1e8q3q16vyc81g8l3h3md6q5f5e-wpengine.netdna-ssl.com/wp-content/uploads/2015/07/A4AI-Mozambique-Rationale-for-
Customs-Duty-Reduction_Full-Analysis_English_FINAL.pdf
64. Deloitte and GSMA. 2011. Mobile Telephony and Taxation in Kenya. https://www.gsma.com/publicpolicy/wp-content/
uploads/2012/03/mobiletelephoneandtaxationinkenya.pdf
A “Digital Infrastructure Moonshot” for Africa 89
Policy emphasize short-term revenues at
the expense of medium- to long-
Recommendations: term economic impacts through
increased penetration of broadband.
Supporting Public and Adoption of the ITA is critical to
achieve this.66
Private Initiatives to
Lower Device Costs • Daily, weekly, or monthly installment
plans, can significantly improve the
affordability of mobile broadband
Any policy strategy that seeks to double capable devices. This can be
broadband penetration in Africa must accomplished through targeted
appreciate the important role of device interventions to catalyze financing
costs in meeting these goals. The capital, promote financial inclusion,
following should be part of such and remove restrictions on
a strategy: technologies that promote handset
financing such as SIM locking, mobile
Increase device affordability device management, and mobile
and adoption through money.
targeted public policies:
Support business models offering
• Research can point to regions and low-cost devices on the market:
populations less likely to use the
mobile internet. In the case of Africa, • One threshold to establish from the
this will more likely include women outset is the minimum key features
relative to other regions in the world, of devices that will enable people to
as noted above. Broadband policies, use the internet meaningfully. This
including those aimed at improving can include minimum requirements
device affordability, should be gender on mobile technology (for example,
responsive and address the unique 3G or 4G), ability to use basic internet
barriers to internet access and use applications, and so on. Establishing
faced by women.65 this minimum will give governments,
device manufacturers, and mobile
• One approach can be to better use network operators a clear guide on
existing USAFs to subsidize device what kinds of devices can help meet
costs for underserved groups such as the government’s access goals.
women as part of initiatives aimed at
improving last-mile access solutions. • Governments can provide a
This can be done in partnership with range of incentives to support the
mobile network operators and other provision of such devices including
ISPs, including community networks. exempting specified devices (those
meeting the government’s minimum
• Given the potentially significant features) from duties, and excise
impacts that disproportionate and other taxes. Other options
taxation on devices can have on include prioritizing support through
affordability, it is important that government investment agencies for
governments work to identify and ventures (between local and foreign
implement a balanced taxation firms or PPPs) that seek to offer low-
regime for ICTs, and devices in cost devices to the market.
particular – one that does not
65. A4AI and World Wide Web Foundation. 2018. React with Gender Responsive ICT Policy: The Key to Connecting the Next 4
Billion. https://webfoundation.org/research/react-with-gender-responsive-ict-policy/
66. 20 years of the Information and Technology Agreement. Boosting trade, innovation and digital connectivity.
https://www.wto.org/english/res_e/publications_e/ita20years2017_e.htm
90 Broadband Commission Working Group on Broadband for All
• It will also be important to consider Engage with the private
the competitive effects of low- sector and other partners
cost devices such as smart-feature to lower manufacturing
phones on the market. This should
costs for devices:
be done both in terms of potential
vertical integration by a dominant
• The private sector, government, and
operator offering exclusive content
academia should also examine the
and also within the open source (OS)
challenges posed by, and effects of,
space (including the app store). In the
royalty stacking in the smartphone
case of the latter, as Android does
industry.68 Observers suggest that up
not operate in the smart-feature
to 31 percent of the cost of a $400
phone space, the emergence of a
smartphone can be attributed to
dominant OS could ultimately lead to
patent royalties.69 Indeed, in some
similar monopoly-related issues that
cases, the cost associated with
Android has created for smartphones.
patent royalties for a smartphone
represents more than the cost of the
• Support policies that promote
phone’s physical components. This
local innovation and research and
matter requires closer examination
development for internet-enabled
so that the royalty payments would
devices such as handsets. The long-
not discourage potential new market
term impact of such policies and
entrants to invest, innovate, and
programs could be greater focus
compete in the smartphone industry.
on African products while reducing
This is particularly relevant for low-
Africa’s dependency on external
cost devices which, as noted above,
innovation. A recent example of a
have much smaller profit margins for
smartphone produced in Africa is
manufacturers and their partners.
the Maraphone,67 which although
not yet affordable (the cheapest
smartphone is currently advertised
at $125) points to the potential for
locally produced devices.
67. See https://maraphones.com/
68. A4AI. 2015-16 Affordability Report. https://a4ai.org/affordability-report/report/2015/
69. Armstrong, Ann, Joseph J. Mueller, and Timothy D. Syrett. 2014. The Smartphone Royalty Stack: Surveying Royalty Demands
for the Components Within Modern Smartphones. 29 May. Boston: WilmerHale.
https://www.wilmerhale.com/en/insights/publications/the-smartphone-royalty-stack
A “Digital Infrastructure Moonshot” for Africa 91
8
Roadmap and
Action Plan
to Achieve
Universal,
Affordable,
and Good
Quality
Broadband
Across Africa
92 Broadband Commission Working Group on Broadband for All
The strategy and requirements to achieve • Ensure that the commercial
broad digital infrastructure growth in broadband market is open and
any country will vary depending upon structurally prepared for competitive
a wide range of market conditions and private investment.
other factors. In general, each country
is likely to already be on a path toward • Reduce noneconomic costs and risks
universal broadband access with some of market entry and investment.
key milestones already accomplished
and others still to be reached. At a high • Provide public/donor funding support
level, the main features of the broadband for larger, high-cost infrastructure
development roadmap70 by 2030 (see investments to reduce risk and
figure 8.1), for any country or market, increase commercial viability.
include the following sequence of key
objectives71 and are fully aligned with • Expand the market through
the principles presented in chapter 3 government procurement and
of this report. implementation of broadband-
based digital services, networks, and
facilities.
• Provide direct funding support for
extending affordable broadband
access to commercially challenging
rural and remote areas, to women,
and low-income users under a
Mobilizing Finance for Development
approach
• Increase ICT market commercial
attractiveness through demand
stimulation and affordability
initiatives.
• Promote long-term sustainability by
ensuring that appropriate technical
skills to operate and maintain digital
infrastructure are increasingly
available on the continent.
70. Note that this Roadmap and Action Plan exist within the framework of the DE4A Initiative and form an integral part of this
larger effort.
71. These are aligned with those suggested, for example, in Gelvanovska, Natalija, Michel Rogy, and Carlo Maria Rossotto. 2014.
Broadband Networks in the Middle East and North Africa: Accelerating High-Speed Internet Access. Directions in Development.
Washington, DC: World Bank. https://openknowledge.worldbank.org/handle/10986/16680
A “Digital Infrastructure Moonshot” for Africa 93
Figure 8.1. Roadmap for Universal Access
to Affordable and Good Quality Broadband
Ensure that the commercial broadband market is open and
1 structurally prepared for competitive private investment
Reduce non-economic costs and
2 risks of market entry and investment
Provide public/donor funding support for larger, high-
3 cost infrastructure investments to reduce risk and
increase commercial viability
Expand the market through government procurement
4 and implementation of broadband based digital services,
networks, and facilities
Provide direct funding support for extending affordable
broadband access to commercially challenging rural and
5 remote areas, to women, and low-income users under a
Mobilizing Finance for Development approach
Increase ICT market commercial attractiveness through
6 demand stimulation and affordability initiatives
Promote long-term sustainability by ensuring that
7 appropriate technical skills to operate and maintain digital
infrastructure are increasingly available on the continent
In establishing its own policy, funding, broadband ICT sector growth potential.
and project priorities, each government It also identifies key responsible parties
(and funding partner) should review the for each objective.
extent to which it has addressed each
of these elements, and what next steps The list of responsible parties is not
need to be followed to achieve the exhaustive, but rather indicative of
relevant objectives. the key stakeholders who would
take a certain level of ownership and
The discussion below highlights key responsibility toward the objectives.
aspects of each objective and identifies The efforts will require multistakeholder
both immediate/short-term actions and engagement to develop, implement, and
medium- to longer-term actions that operationalize a roadmap of strategies
countries should review and consider and translate policy commitment into
undertaking or enhancing to maximize effective action.
94 Broadband Commission Working Group on Broadband for All
Objective 1: Ensure Medium/Long-Term Actions:
that the commercial • Adopt uniform, cost-oriented network
interconnection charges and rules.
broadband ICT
• Adopt procompetition regulatory
market is open and practices, which ensure equitable
structurally prepared treatment of all market participants
regardless of physical location
for competitive and enforce restrictions on
anticompetitive behavior, especially
private investment by dominant service providers.
The most effective and desirable source • Develop a harmonized legal, policy
of investments in digital broadband and regulatory framework for
networks infrastructure will come from cybersecurity, data protection and
private investors acting on business privacy that is aligned with regional
opportunities in a country’s ICT market. and international conventions
To attract such investors under a including action plans and projected
Mobilizing Finance for Development budgets. Support the African Union’s
approach, the policy framework must efforts for the ratification of the
enable and encourage competitive “Malabo Convention” on cybersecurity
market entry, by minimizing institutional and data protection through regional
and regulatory barriers, and ensuring initiatives in collaboration with existing
that opportunities to build successful, regional organizations and operational
competitive network operations are bodies to enable member states to
equitable and transparent at all levels share information, experiences and
of the value chain and both at the retail resources.
and wholesale level. Effective policies
and enforcement minimizing risks of • Establish reasonable licensing and
cybercrime and data insecurity should spectrum fees.
also be in place (sometimes referred to as
second generation ICT laws). Responsible Parties:
Immediate/Short-Term Actions: • Governments, including policy
makers, sector regulators, data
• Adopt open wholesale and retail protection authorities, cybersecurity
telecommunications market entry authorities.
policies, especially competitive and
unified licensing regimes, and liberal, • African regional economic
dynamic spectrum policies. Such communities (REC) and African Union
policies should also accommodate (AU) Commission.
community and nonprofit focused
network operators who offer services • Partners investing in policy and
in underserved areas. regulatory reform, such as the
multilateral development banks
• Support infrastructure sharing and (MDBs).
initiatives for major active and passive
broadband network components,
to permit more cost-effective and
commercially viable investments.
• Streamline licensing procedures,
requirements.
A “Digital Infrastructure Moonshot” for Africa 95
Box 8.1. Facebook’s Shared Backhaul Projects
A lack of reliable backhaul infrastructure can frustrate efforts to provide
broadband services in Africa. Backhaul investments can allow mobile operators
to expand capacity, reduce network costs, and improve performance.
Facebook’s Shared Backhaul projects provide connectivity between towers,
points of presence (POPs), and core switches and enable multiple service
providers to benefit from the resulting infrastructure driving down the cost of
bandwidth for each provider. For example:
• Facebook worked with Airtel Uganda and BSC to complete a 770
kilometer fiber network in northwest Uganda, which will help make mobile
broadband available to more than three million people.
• In South Africa, VAST and Facebook connected the underserved
communities of Diepsloot and Katlehong to Wi-Fi hotspots backhauled by
100 kilometers of fiber.
• In Nigeria, Facebook and MainOne built 900 kilometers of fiber across the
metropolitan areas of Abeokuta, Ogun and Benin City, Edo; and additional
backhaul through rural Ogun.
Source: https://connectivity.fb.com/network-investments/
Objective 2: Reduce existing broadband infrastructure, and
mandate the incumbent to make local
noneconomic costs access lines available to competitors at
wholesale prices. Therefore, it is essential
and risks of market for the government to create an enabling
environment for its businesses by
entry and investment embracing competition and preventing
incumbent firms from acquiring
The costs and risks facing prospective monopoly power. Addressing these issues
investors can be directly influenced by may involve political challenges, and may
a range of noneconomic factors (that require tradeoffs between short-term
is, factors not fundamentally driven by government revenue and longer-term
the economic conditions of the market), market growth benefits.
which are typically within the control
of governments. Actions which reduce Immediate/Short-Term Actions:
such costs and risks can have a direct and
significant impact on investors’ perception • Ensure that license and spectrum
of the attractiveness of the broadband fees for new entrants and existing
ICT market and willingness to commit telecommunications operators
their own capital to expand infrastructure. are reasonable; reduce fees where
Policies that ensure market competition possible and avoid spectrum/license
should be implemented. In this regard, auctions that artificially drive up entry
government intervention should be costs. Also, assess the feasibility of
engineered to increase competition and unlicensed spectrum use particular
promote the entrance of wholesale, for innovative technologies that
open access service providers that can target underserved communities.
commercialize or operate new and
96 Broadband Commission Working Group on Broadband for All
• Establish and enforce reasonable, low- major backhaul networks, such as national
cost access to rights-of-way, including and international fiber optic backbones,
streamlined and simplified procedures which represent an essential prerequisite
and regulations to avoid undue for delivering broadband services. Similar
restrictions by local authorities. forms of supporting infrastructure projects
can also directly reduce costs and risks
Medium/Long-Term Actions: for investors who might otherwise have
to finance such components. Once such
• Review and reduce taxes and import basic infrastructure is in place, the costs to
tariffs on telecommunications the market of constructing and operating
equipment and services, especially related network components will be
unnecessarily high tariffs on essential reduced, improving competitive entry
(foreign-sourced) equipment needed opportunities at the level of local access
to build and operate telecommunica- and distribution, for example.
tions network infrastructure.
Immediate/Short-Term Actions:
Responsible Parties:
• Develop PPP policies and frameworks
• Governments, including policy makers, to enable the implementation of major
sector regulators, local governments. national and international backhaul
networks (see box 8.1).
• Regulators, competition agencies
• Develop public/donor investment
• Partners investing in policy and projects for key elements of
regulatory reform, such as the MDBs, supporting infrastructure: electrical
development aid agencies. power, roads, and so on. These
might be included as part of
• African regional economic telecommunications backhaul
communities (REC) and African Union infrastructure PPP projects, or as
(AU) Commission. standalone initiatives.
• Partners involved with, and affected Medium/Long-Term Actions:
by, the required policy reforms.
• Establish PPPs for other major digital
components such as data warehouses
Objective 3: Provide and internet exchange points (IXPs)
public/donor blended to reduce costs of major broadband
service supply.
funding support
Responsible Parties:
for larger, high-
cost infrastructure • Governments, especially finance
ministries, communications sector
investments to reduce policy makers.
risk and increase • Regulators, competition agencies
commercial viability • African Regional Economic
Communities (REC) and African Union
In general, the greatest challenge in (AU) Commission.
attracting private market investment in
ICT infrastructure involves the buildout of • Partners investing in PPP arrangements,
network components which require large, such as the MDBs, private sector,
long-term capital commitments with development aid agencies.
uncertain payback horizons. These include
A “Digital Infrastructure Moonshot” for Africa 97
Box 8.2. Reverse Subsidy Auctions as a
Mechanism for Widening Rural Access
Under the Regional Communications Infrastructure Program (RCIP) in
Tanzania, which closed in 2017, some 2.5 million people were provided with
rural connectivity for the first time.a Commercial mobile operators competed
in a reverse subsidy auction (that is, the CapEx grant was awarded to the
operator bidding for the lowest level of subsidy). In total, some $30 million in
International Development Association (IDA) funding leveraged around $70
million in private sector investment with four companies taking part (that is, the
average CapEx subsidy from IDA was 30 percent). It is proposed to develop a
similar scheme in rural Niger, in cooperation with the local mobile operators,
but with a focus on extending 3G/4G coverage rather than just 2G coverage
that was the focus in Tanzania.
This methodology for promoting rural coverage has a number of advantages:
• It is private sector led, and maximizes finance for development;
• It is a transparent process in which subsidies are awarded to the operator
requesting the lowest level of subsidy, which is presumably the most
efficient because it has the lowest cost structure in a given area;
• Risks are shared between the public and private sectors, and funds from
IDA can be used alongside national funds from the USAF;
• The methodology is sufficiently flexible to allow, for instance, mobile
operators to compete for subsidy against specialized tower companies, or
even to allow local communities to self-provide coverage.
In addition to the lessons learned from the IDA-funded RCIP project in rural
Tanzania, GSMA, an industry association and a member of the World Bank-led
Digital Development Partnership (DDP), conducted a trial project in a further
six villages in rural Tanzania using national roaming that generated promising
results. Under national roaming, the operator that installs the tower benefits
from a year of exclusivity, but thereafter undertakes to offer connectivity to
all other operators, without roaming charges, allowing them to compete
for customers. Results suggest that the benefits this brings, for instance, for
increased mobile money usage, means that the required level of CapEx subsidy
is reduced.b
Note: a. See RCIP-3 ICR, http://documents.worldbank.org/curated/en/414221531333372143/pdf/
ICR00004013-07062018.pdf; b. See https://www.gsma.com/mobilefordevelopment/wp-content/
uploads/2018/02/GSMA_Tanzania_Jan.pdf
98 Broadband Commission Working Group on Broadband for All
Objective 4: Expand Immediate/Short-Term Actions:
the market through • Develop a national government ICT
framework, with clear plans and
government projected budgets, in collaboration
procurement and with government agencies and ICT
industry providers, for design and
implementation of implementation of e-government
networks and services, to signal to
broadband ICT-based the market that such demand will be
forthcoming.
e-services, networks,
and facilities • Develop parallel plans to support the
use of similar government services by
Governments under an e-government population segments that are not yet
approach can strongly promote the online.
market for investment in ICT networks
and services through their leading • Consider reverse subsidy auctions
role as customers and users of these (see Box 8.2) to develop relevant
services, which can benefit citizens in digital services, networks and
both urban and rural areas in multiple facilities for the private sector.
ways. For instance, the Broadband
Commission addressed the important Medium/Long-Term Actions:
question of digitalization through the
launch of the Digitalization Scorecard • Roll out coordinated e-government
report.72 Digitalization goes hand in hand (including e-education, e-health,
with e-government implementations and so on) networks, facilities, and
and the scorecard report looked at services through contracts with
which policies and regulations can help private operators.
advance digitalization across various
sectors of the economy because of their Responsible Parties:
high socioeconomic impact: agriculture,
education, healthcare, government, • Governments, especially finance
and transportation. ministries, communications sector
policy makers.
Through public procurement of
e-government networks, contracts, • Partners investing in the sector,
and services – which extend broadband especially private sector and other
connectivity to public buildings, schools, supporting investors/funders.
health facilities, and so on, beyond
major city centers – these government
purchases pay directly for much of the
required infrastructure while providing
anchor tenant revenue assurance to
private telecommunications operators,
which can utilize the same infrastructure
to deliver affordable service to
public customers.
72. Broadband Commission for Sustainable Development. 2017. Working Group on the Digitalization Scorecard: Which Policies
and Regulations Can Help Advance Digitalization. https://broadbandcommission.org/Documents/publications/WG-
Digitalization-Score-Card-Report2017.pdf
A “Digital Infrastructure Moonshot” for Africa 99
Objective 5: Provide based broadband services will not be
commercially viable on their own in
direct funding the near or medium term. Ensuring
that these regions and citizens are able
support for extending to benefit from broadband ICTs is a
critical component of overall sector
affordable broadband development objectives. Universal
access to commercially service programs and funding should
not be treated as a “last resort” for such
challenging rural groups, even where commercial growth
might eventually emerge, as this would
and remote areas, only consign them to long delays and
to women, and low- exclusion from digital development
opportunities. Proactive funding and
income users support projects should be coordinated
with other infrastructure initiatives
It is likely that in most countries there to ensure that affordable access to
will be significant geographic areas broadband expands for the least
and population segments, perhaps advantaged citizens at the same time as
15-20 percent, for which market- the commercial market grows.
Figure 8.2. Ghana Investment Fund for Electronic Communications -
Smart Community Architecture
Local Content
Police
Station
Community FIBRE (overhead)
e
tR ang
ot spo
Fi H
School m Wi-
20K
BASE STATION Farmer
Chief’s
Palace
Health
Centre
FIBRE
(underground)
Digital
District Financial
Assembly Community Kiosk
Information
Centre
Source: GIFEC. 2018. Closing the Digital Gap Using Universal Service Funds – Key Lessons from Ghana.
100 Broadband Commission Working Group on Broadband for All
Immediate/Short-Term Actions: • Thoroughly monitor and evaluate
the impact of USAF funds against set
• Establish and/or support universal objectives.
service and access fund (USAF)
mechanisms based on innovative • Pay increased attention to urban
operating models and technology centers because of the high rural-
solutions, to channel funding urban migration rate in Africa.
resources toward noneconomic areas Providing reliable connectivity to
and programs, including regulatory cities will contribute to making them
framework, industry contributions, smarter, safer, and more sustainable
and implementation procedures. (see box 8.5 for the Smart City
Playbook report).
Medium/Long-Term Actions:
Responsible Parties:
• Employ USAF funds and procedures
or pay and play mechanismsto • Governments, especially policy
support construction and operation makers, sector regulators, USAF.
of rural broadband distribution and
access networks that are based • Partners investing in policy and
on supporting communities with a regulatory reform, such as MDBs,
multitude of services (see figure 8.2 development aid agencies, and
for the example of Ghana’s GIFEC others supporting USAF to become
Smart Community Architecture). effective mechanisms for investment
in rural and remote areas.
• Develop, fund, and implement public
ICT access facilities and programs, • Private sector, including satellite
including telecenters and public Wi-Fi, operators and small, medium and/
in both rural and urban areas, to offer or alternative providers, such as
low-cost public service for those least community networks, rural operators,
able to afford commercial broadband among others.
(see box 8.3 and box 8.4 for examples
of this type of action in practice).
A “Digital Infrastructure Moonshot” for Africa 101
Box 8.3. Huawei: Innovative Infrastructure
Solution to Expand Access to Rural Areas
Huawei’s RuralStar solution enables rural networks to provide cost-effective
mobile broadband services as well as traditional voice services in remote areas.
Specifically, the solution provides lightweight coverage for 2G voice, SMS,
and mobile money services, and 3G broadband data services. In over eight
countries, including in Kenya, Ghana, and Nigeria, Huawei has partnered with
local operators to roll out RuralStar networks to expand mobile internet access.
In Ghana, in partnership with MTN Ghana, the RuralStar solution was deployed
in over 300 sites to expand rural mobile internet coverage. RuralStar proved
to be cost-effective (with less need for upfront investment and expenditure
on electricity networks) and increased return on investment in low-density
population areas, and expanded network coverage in rural and remote areas
where it was deemed unprofitable. Similarly, in Kenya, Huawei has partnered
with Safaricom to bring RuralStar to a rural town in Kenya, and their endeavor
has produced notable impacts, such as improved healthcare, increased access
to finance, better security, and improved education.
Source: https://www.gsma.com/futurenetworks/wiki/ruralstar-huawei-safaricom-case-study/;
https://www.gsma.com/mobilefordevelopment/wp-content/uploads/2019/02/Huawei_RuralStar_MTN_
Ghana_Rural_Innovation_Connectivity_Case_Study_Nov18.pdf
Box 8.4. Microsoft’s Airband Initiative
Microsoft’s Airband Initiative partners with equipment makers, and local
internet and energy access providers to deploy technologies and business
models that help more people affordably get online. These projects align with
national level strategies and provide not only internet access, but digital skills
training, telemedicine services and small business empowerment. In Africa, the
Airband Initiative has led two notable projects:
• Mawingu (Kenya): Mawingu Networks is providing affordable internet in rural
Kenya, by using low-cost wireless technologies, and solar power. Utilizing
technologies such as Wi-Fi and various fixed microwave technologies,
Mawingu is delivering internet access for as little as $4 per month and has a
five-year projected population coverage of 3.6 million people.
• Brightwave (South Africa): In partnership with the Universal Service
and Access Agency of South Africa (USAASA), Brightwave is providing
broadband to over 600 schools and clinics in the rural Eastern Cape
municipalities of King Sabata Dalindyebo and Mhlontlo Local. Using a
hybrid network solution, combining fiber and various fixed microwave
technologies, Brightwave is extending its network to connect previously
unserved rural areas and covers over 200,000 people, with eventual
coverage projected to be over 400,000.
Source: https://www.microsoft.com/en-us/airband; https://news.microsoft.com/features/empow-
ering-kenya-and-the-world-with-high-speed-low-cost-internet/; http://download.microsoft.com/
download/6/C/9/6C955541-5053-4A1C-BF0E-22F3BA34CE0F/Microsoft_Airband_Brightwave_Casestudy.pdf
102 Broadband Commission Working Group on Broadband for All
Box 8.5. Nokia’s Smart City Playbook
The Smart City Playbook, a strategy report that documents best practice for
smart cities, provides concrete guidance to city leaders on successful strategies
used by other municipalities to make their cities smarter, safer, and more
sustainable. Commissioned by Nokia and developed by Machina Research,
the playbook was developed through primary research into the strategies and
progress of 22 cities around the world.
While the study found significant differences between cities, even amongst
those following the same route, it also concluded that there are several
particular practices used by successful smart cities that would appear to be of
universal benefit, including:
• Successful cities have established open and transparent rules for the use of
data (on which all smart cities are dependent) by government departments
and third parties, whether shared freely or monetized to cover data
management costs.
• Many cities that are advanced in their smart city journeys have committed
to making both ICT and IoT infrastructure accessible to users both inside
and outside of government, and have avoided the creation of silos between
government departments.
• Governments (and their third-party partners) that have worked to actively
engage residents in smart city initiatives have been particularly effective,
most notably those where the benefits are highly visible such as smart
lighting and smart parking.
• Smart city infrastructure needs to be scalable and sharable, so it can grow
and evolve to meet future needs.
Source: Machina Research Strategy Report. The Smart City Playbook: Smart, Safe, Sustainable.
https://pages.nokia.com/T003V0-what-are-cities-doing-to-be-smart.html
Objective 6: Increase policies which address demand-side
constraints, as discussed in previous
ICT market commercial sections. Such programs on affordable
devices, digital skills development, and
attractiveness relevant content and applications will
help stimulate demand across all user
through demand groups, improving the commercial
stimulation and viability of private infrastructure
investments. In this regard, public-private
affordability initiatives partnerships in support of building digital
skills and offering affordable digital
Market growth and affordable access devices can be considered to stimulate
will also be enhanced by programs and demand-side factors.
A “Digital Infrastructure Moonshot” for Africa 103
Immediate/Short-Term Actions:
• Adopt frameworks, plans, targets for
demand stimulation programs, with
special attention on women and girls,
the poor, marginalized, and rural
populations.
• Commence digital skills and content
initiatives, to increase attractiveness and
value of broadband access, and hence
willingness to pay.
Medium/Long-Term Actions:
• Establish affordable digital devices
programs through subsidies, payment
plans, and device financing to improve
affordability for all, especially for low-
income users.
• Promote innovative business models
and new technologies (see box 8.6 and
box 8.7).
Responsible Parties:
• Governments, especially ministries of
education, science and technology,
labor, gender, and youth.
• Partners investing in digital skills and
content development, such as the
MDBs, development aid agencies,
private sector, public and academic
institutions.
• Private sector, including satellite
operators, device manufacturers, and
small, medium and/or alternative
providers, such as community networks,
rural operators, among others.
104 Broadband Commission Working Group on Broadband for All
Box 8.6. Innovative Business Models for
Expanding Fiber-Optic Networks and
Closing the Access Gaps
A study by the World Bank shows how new technologies and business
models can help developing countries expand high-speed internet access.
By reviewing 70 internet-related infrastructure projects and innovative last-
mile solutions from across the world, spanning all segments of the broadband
value-chain, the report examines creative approaches to closing the global
digital divide and ensuring everyone can reap the social and economic benefits
of digital development – including poor or isolated communities where
traditional strategies may not be economically viable. These case studies
provide a framework to analyze their applicability based on key attributes, and
measures that contribute to their relative success. With wireless technology
leading the way in connecting individuals, the report also analyzes key trends
related to spectrum policy and planning.
Meanwhile, the report finds that most successful broadband initiatives have
been driven by the private sector. 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.
Increased competition for broadband services, including where appropriate
the infrastructure itself, has led to significant improvements in the coverage
and affordability of high-speed internet. Recent technological progress and
innovations highlighted in the report include, among others, broadband
deployment using low-cost satellites, small cell solutions, as well as drones,
balloons, and other nonpermanent structures.
Source: Gallegos, Doyle, Junko Narimatsu, Oana Ariana Batori, Janet Hernandez, Daniel
Leza, Ivan Skenderoski, and Erik Whitlock. 2018. Innovative Business Models for Expand-
ing Fiber-Optic Networks and Closing the Access Gaps. Washington, DC: World
Bank Group. http://documents.worldbank.org/curated/en/674601544534500678/
Innovative-Business-Models-for-Expanding-Fiber-Optic-Networks-and-Closing-the-Access-Gaps
A “Digital Infrastructure Moonshot” for Africa 105
Box 8.7. Intelsat’s Partnership with UNHCR
to Bring Internet Access to Refugees
Globally there are nearly 25.4 million refugees, over half of whom are under
the age of 18. At the end of 2016, Africa hosted 5,531,693 refugees. The lack
of digital connectivity increases the vulnerability of people who were forced
to flee by depriving them of opportunities for communication, information,
education, financial transactions, self/community/social development, and
work. This makes it difficult for refugees to restore independence, to rebuild
productive lives as well as to maintain family links and other social relations.
Access to the internet is one of the tools which provide equal opportunities for
development, empowerment, and protection.
AMPAIN CAMP, GHANA
In 2016, the United Nations High Commissioner for Refugees (UNHCR) and
Intelsat jointly developed an internet access pilot program for the Ampain
refugee camp in Ghana. The ICT center at Ampain provides refugees with
computers to access online courses. To date, 280 online courses were
completed by 220 camp inhabitants. The service is now being packaged as
a low-maintenance, solar-powered, satellite-connected Wi-Fi service which
provides quality internet access to refugee camps in remote locations.
THE SOLUTION
Using Intelsat’s Ku-band service, the program delivers quality internet access
using small dish antennas (±1-meter diameter), which are light and easy to install.
The Wi-Fi service provides coverage and internet access for users in and around
the ICT center in Ampain refugee camp, and are also expanded to cover larger
areas of the camp. Where the electricity supply is insufficient or absent, a solar
power platform is installed to provide power to the satellite and Wi-Fi equipment.
Objective 7: Promote markets develop – and retain – growing
pools of skilled technical workers. Often,
long-term sustainability outside investors will bring in their own
(foreign) labor force to build out networks
by ensuring that and infrastructure, and even to manage
and operate services, without always
appropriate technical transferring these skills and responsibilities
skills to operate to the domestic population. Such
practices risk inhibiting the viability and
and maintain digital growth of the digital ecosystem, shutting
out many potential avenues of high-
infrastructure are paying, high-skilled employment, and/or
increasingly available creating undue dependence on foreign
labor. Policies which encourage, and even
on the continent mandate, the training and employment
of technical workers from within the host
For digital infrastructure, services, and country can provide strong assurances
related industry operations to become of sustainable growth and transformation
truly sustainable in the medium- to toward a robust digital economy.
long-term, it is vital that African labor
106 Broadband Commission Working Group on Broadband for All
Immediate/Short-Term Actions:
• Conduct a comprehensive review
and study of the scope of technical
skills, needs, training options, and
employment, and develop plans
to expand education and training
opportunities and incentives
(including requirements for gender
equality).
Medium/Long-Term Actions:
• Invest in advanced technical
training programs at universities and
specialized institutes (including via
industry partnerships) to expand the
potential pool of skilled workers in
the ICT sector.
• Incorporate domestic labor
requirements, including training
elements as needed, in PPP
projects to build and operate digital
infrastructure, taking account of the
expected size and skills of the labor
force.
• Develop plans to create incentives for
skilled technical workers to remain
within the country, and to serve in
nonurban and remote locations,
including tax and financial incentives
and bonuses.
Responsible Parties:
• Governments, especially ministries
of labor, education, science and
technology, gender, and youth.
• Partners investing in digital skills
development and training, such as
the MDBs, development aid agencies,
private sector, public and academic
institutions.
• Private sector investors, particularly
international firms contracting to
build and operate major digital
infrastructure projects incorporating
significant skilled work forces, under
licenses or partnerships with the
government.
A “Digital Infrastructure Moonshot” for Africa 107
9
Financing
Mechanisms
for the Digital
Infrastructure
Moonshot
for Africa
108 Broadband Commission Working Group on Broadband for All
To ensure that this ambitious initiative connections, services, needed skills,
achieves its goals and targets, it is of and content. Therefore, governments
the utmost importance that all funding must take an increasing role as
and investment partners come together investors in public ICT infrastructure
and collaborate to put in place the most and ensure that such infrastructure is
efficient investment plans and financing in place to support the advancement
mechanisms to support the level of of their national development
investment required to achieve universal agendas. Government resources
access to affordable and good quality come in many ways, from universal
broadband in Africa. access and service funds (USAFs)
available to invest in the sector (often
With an overall estimate of $109 billion in administered in coordination with the
investments needed to achieve the 2030 sector regulator), to other national
target of universal access to affordable sources of infrastructure investment
and good quality broadband, including and support. Governments should
the milestone for doubling connectivity review the sources of USAF funds
by 2021, it is important that each partner and develop innovative models
plays a role in mobilizing necessary to ensure the contribution base is
resources and focuses their efforts on broadened to encompass all those
contributing to this ambitious target. who derive economic benefit from
the investment. It is critical that
• African Union (AU) and regional governments not only invest their
economic communities (REC). resources effectively but also that
It is critical that such a massive they support the development and
initiative be endorsed at continental establishment of enabling policy and
level by the AU, taking on the regulatory environments that will
role of coordinating efforts and incentivize and promote investments
ensure that such efforts are aligned and market growth. Increased
with, for example, its upcoming coordination between governments
Digital Transformation Strategy. In on this agenda, for example in
collaboration with AU, RECs such context of the Smart Africa Initiative
as ECOWAS, SADC, COMESA, and or within regional economic
EAC, are also central to various communities, should be fostered to
transformation programs of the achieve bigger harmonized markets.
continent. They facilitate accelerated
planning, design, development, • Sector regulators. Regulators have a
operation and management of key role to play in both establishing
regional broadband infrastructure a level playing field in the market,
and other crossborder initiatives for but also in the implementation of
the subregion. RECs also play a key key policies and regulation aiming
role in coordinating donor support at achieving universal, affordable,
and aligning programs with regional and good quality broadband. It is
priorities. critical that sector regulators invest
in the needed skills and tools and
• African governments and respective develop their policy and regulatory
public investment agencies. frameworks for digital markets, with
Governments have the ultimate the support of ITU, MDBs, and other
responsibility to ensure that their relevant organizations.
citizens have access to affordable
and good quality broadband
A “Digital Infrastructure Moonshot” for Africa 109
• Multilateral development banks • United Nations and other
(MDBs) and regional development development agencies, including
banks (RDB) and other donors. MDBs the ITU. As a leading United Nations
should increase their commitment agency for ICT, the ITU has a key role
to ICT infrastructure and projects in in coordinating technical, economic
general and to Africa specifically.73 and regulatory matters relating to
ensuring universal, affordable, and
»» The World Bank Group will good quality broadband connectivity.
mobilize and make available a The ITU also finances national,
number of financing mechanisms, regional, and global ICT development
notably through the International projects through its ICT Development
Development Association (IDA) Fund (ICT-DF).75
under a Mobilizing Finance for
Development approach, to facilitate • Private sector (national and foreign).
and expedite the distribution and Network operators and service
allocation of a share of the $25 providers are expected to play a
billion earmarked for all dimensions critical role as key investors in the
of the DE4A Initiative to support the ICT sector through continued and
implementation of the Roadmap increased levels of commitment to
and Action Plan recommended to expand network coverage beyond
achieve the 2030 target of universal urban population centers. Achieving
access to affordable and good commercially sustainable investment
quality broadband, including the would require innovations to lower
milestone for doubling connectivity the CapEx and OpEx of cell sites and
by 2021. infrastructure overall and enhanced
demands for mobile services and
»» EU-Africa Infrastructure Trust Fund corresponding market growth. Digital
(EU-AITF) of EIB also has dedicated services are increasingly provided
fund programs for developing Africa by non-network operators and as
ICT infrastructure.74 the infrastructure gap is caused by a
funding gap, innovations to finance
»» Other MDBs such as the African models may of necessity require
Development Bank, the Islamic obtaining contributions from non-
Development Bank, the European network operators on a direct or
Investment Bank, and many others, indirect basis.
are invited to join forces with
bilateral development partners and • NGOs are another critical player in
with the World Bank to coordinate the DE4A Initiative and should play a
their investment plans and ensure key role as implementing partners, in
that together they are making particular in supporting digital skills
investment decisions that will building, and content development.
support this strategy and roadmap.
73. According to the Alliance for Affordable internet, “…despite increasing recognition of the importance of digital access to the
realisation of the Sustainable Development Goals, MDBs are investing just 1% of their total commitments in ICT projects.” A4AI
and World Wide Web Foundation. 2018. Closing the Investment Gap: How Multilateral Development Banks Can Contribute
to Digital Inclusion. https://1e8q3q16vyc81g8l3h3md6q5f5e-wpengine.netdna-ssl.com/wp-content/uploads/2018/04/MDB-
Investments-in-the-ICT-Sector.pdf
74. https://ec.europa.eu/europeaid/regions/africa/eu-africa-infrastructure-trust-fund-eu-aitf_en
75. https://www.itu.int/en/ITU-D/Projects/Pages/ICT-DF.aspx?Status=&Theme=&Region=&Country=&ICTDF=1&Keyword=
110 Broadband Commission Working Group on Broadband for All
All participating organizations must (CapEx) and network operations
collaborate to ensure that their resources and maintenance (O&M). Another
are used in the most effective way. significant aspect of the MFD approach
Partnership among the financing demonstrates that public investment
partners, as well as other implementing participants (e.g. MDBs, bilaterals and
partners, is more likely to result in other development aid agencies) will
effective investments, and ultimately, channel investments in areas that the
greater impact. Figure 9.1 below provides private sector sees as non-commercially
an indicative distribution of cost sharing viable.
between the public and the private
for infrastructure capital expenditure
Figure 9.1. MFD Indicative Distribution of Cost Sharing
Urban Population Rural Population Remote Rural
New Users New Users New Users 1.2
550 million 550 million 100 million BILLION
NEW
(46%) (46%) (8%) USERS
Funding Requirements Funding Requirements $83
$63 billion (75%) $20 billion (25%) US$
BILLION
PRIVATE PUBLIC
Infrastructure CapEx Infrastructure CapEx $30
$28 billion (93%) $2 billion (7%) US$
BILLION
Network O&M Network O&M $53
$35 billion (66%) $18 billion (34%) US$
BILLION
Note: New users in remote rural area are estimated at ~100m (~15%-20% of the rural population). This rep-
resents the low-density areas out of reach of traditional mobile networks.
A “Digital Infrastructure Moonshot” for Africa 111
10
Monitoring
Progress
towards
Broadband
for All
112 Broadband Commission Working Group on Broadband for All
Given the magnitude of this initiative, • Affordability of broadband services:
it is critical that all partners involved Monthly cost of 1 GB per month of
support the ongoing efforts to monitor mobile data, as a percentage of gross
progress towards the 2030 goal. It is national income (GNI) per capita.
therefore proposed that a monitoring
framework be set up to help Africa track • Quality of service (QoS): Upload
the progress and achievement of targets and download speeds, a minimum
outlined in the Roadmap and Action Plan amount of data, and device type.76
in chapter 8 of this report.
• Infrastructure location and
A new, crowdsourced monitoring availability: Data on exact points and
platform could serve as a repository for lines – or on an approximate spatial
all projects (public and private initiatives) level – representing nodes and
taking place to help measure the targets routes of the infrastructural network
against the total investments made under (first mile, middle mile, and last
the auspices of the DE4A initiative. mile). The ITU, the GSMA and some
independent stakeholders have
In addition to a database of infrastructure developed mapping projects that
investments, several metrics should be are a reference to this indicator (see
monitored to measure the progress boxes 2.1-2.3).77
of the overall initiative. The suggested
metrics for monitoring progress are: In addition, it is important that progress
be measured across all areas of the road
• Broadband coverage: Percentage map to achieve digital transformation
of the population living within zones by 2030, such as policy and regulatory
with at least 3G and 4G mobile frameworks, digital skills and content,
network coverage, respectively. and device affordability. For this purpose,
Visualizing such information as well we propose the following approach:
as service areas on maps has proven
to be effective in improving the • Policy and regulatory frameworks:
efficiency of the investments and A measure of progress towards
accelerating broadband connectivity agreed best practice policy and
in some parts of the world. regulatory frameworks, such as
ITU’s ICT Regulatory Tracker and the
• Broadband penetration: Percentage Affordability Drivers Index (ADI).78
of population that have access
to affordable and good quality
broadband, with segments by gender
and rural/urban, gender across urban
and rural, age groups, among other
relevant metrics.
76. A4AI is developing a proposed standard for meaningful access based on this quality of service concept. This will be published
in the Fall of 2019.
77. See https://www.itu.int/en/ITU-D/Technology/Pages/InteractiveTransmissionMaps.aspx and
https://www.mobilecoveragemaps.com
78. See A4AI’s Affordability Report, https://a4ai.org/affordability-report/
A “Digital Infrastructure Moonshot” for Africa 113
• Digital skills and content: there
remains a challenge in measuring
digital skills across countries
because of a lack of high-quality
comparable data. Under this
initiative’s framework, suitable
metrics need to be identified or
developed, in partnership with
other relevant stakeholders such
as UNESCO, the ITU, and others.
Content development is another area
where better data is needed, though
there are some existing indices that
measure and track the development
and availability of locally relevant
content.79
• Affordability of devices: (1)
Percentage of the population that
can afford a mobile broadband
capable phone with less than 15
percent of monthly GNI80 and
with ongoing payments related to
financing of less than two percent
of monthly GNI. (2) Cost of internet
enabled devices as a percentage of
GNI per capita.
Overall monitoring progress will be
publicly available and reported at the
country, regional and continent level.
79. See for example,
https://www.mobileconnectivityindex.com/
80. Analysis of Average Selling Price (IDC) as a percentage
of income (C-GIDD) for feature phones and ultra-low-
end smartphones in Nigeria, 2019H1. Assumes ordinality
between income and corresponding phone purchase, e.g.
the top 10% of phones are purchased by the top 10% of
income earners
114 Broadband Commission Working Group on Broadband for All
A “Digital Infrastructure Moonshot” for Africa 115
Appendix A.
Model
Methodology
and Results
116 Broadband Commission Working Group on Broadband for All
The estimates outlined in this estimates should be considered high
assessment are subject to the following level and directional in nature. More
considerations and caveats: detailed country modelling must be
carried out to build a deeper picture
• The focus and scope of the of individual country investment
modelling exercise were strictly requirements and constraints.
on estimating the cost to achieve
the stated targets – namely • The use of the terms 3G and
anticipated capital expenditures 4G in this assessment does not
(CapEx), infrastructure operation and represent an endorsement of some
maintenance costs, policy, and skills. technologies at the expense of
While other components of feasibility others. This assessment is technology
are acknowledged to warrant strong agnostic, and 3G and 4G are used
consideration (notably service here only as broad proxies for
affordability, economic feasibility, preferred minimum download
sources of funding, and a broad speeds, and in recognition of the fact
assessment of the sustainability of that mobile networks will be central
the proposed investments), they are to achieving the proposed targets.
beyond the scope of this particular
modelling exercise. These additional
factors will be assessed in more detail Key Assumptions
in separate, dedicated phases of
analysis.
and Definitions
The following critical assumptions
• While they share some similarities, underpin the estimates of investment
the 2021 and 2030 digital
requirements:
transformation targets are considered
separately for the purposes of this
assessment. They address two
Defining Broadband
related but different questions,
The definition of broadband across
that is, how much it would cost to
countries continues to evolve as
double penetration by 2021 versus
technologies improve, new generations
how much it would cost to achieve
emerge of wireline and wireless
universal access to broadband
broadband and baseline expectations
by 2030. They also use different
continue to be raised of what constitutes
parameters to define broadband
minimum download speeds for the
(3 Mbps versus 10 Mbps). While
optimal end-user experience. Our
complementary, the results of these
quantitative forecast model seeks to
two assessments should therefore
adhere to these changes by applying a
not be considered cumulative.
definition of broadband that is consistent
with the minimum levels of download
• While based on estimates on a
(and upload) speeds expected to prevail
country-by-country basis across a
during the period under assessment.
sample of 54 markets, the model
was primarily built to develop an
For the purposes of achieving the 2021
assessment at the regional level, with
objective, “broadband” speeds are thus
attendant constraints with respect
defined as 3 Mbps or above (download);
to country-level granularity, along
for mobile connectivity, 3G is used as
with some region-wide, or cluster-
the primary proxy for broadband. For
based assumptions. The resulting
A “Digital Infrastructure Moonshot” for Africa 117
the purposes of achieving the 2030 penetration target for 2021 was set. In
universal access to broadband target, it effect, the 2021 target is thus “doubling
is anticipated that the definition of what penetration from 2016 levels by 2021,
constitutes a basic level of broadband or increasing penetration to at least 20
speed is likely to evolve. In turn, percent, whichever is higher.”
“broadband” speeds are defined as 10
Mbps or above (download). For mobile Network Capital Expenditure
connectivity, 4G is used as the primary (CapEx) Assumptions
proxy for broadband.
Infrastructure investment requirements
Universal Access are estimated for three main network
and Target Population segments:
For the purposes of this analysis, the • Mobile radio network CapEx:
population aged 10 and older is used as While acknowledging that other
the baseline for calculating broadband technologies will likely be available,
penetration. In addition, connectivity 3G network coverage and 4G
penetration numbers are based on the network coverage are used as the
estimated number of “unique” broadband main proxies for broadband network
connections, that is, adjusted where availability and the baseline for
applicable for multi-SIM usage. Finally, estimating network infrastructure
universal access to connectivity is investments for the 2021 target and
defined as 90 percent penetration of the the 2030 target respectively. Mobile
population aged 10 and older. network infrastructure costs are
based on the capital expenditure
Estimating Broadband Penetration needed to extend coverage to the
unconnected population, and provide
For the purposes of this model, estimates adequate capacity and allow for
of broadband adoption are based network upgrades once new users
on unique broadband subscribers. have been connected and traffic
Broadband penetration is obtained expands. Estimates include a mix of
by dividing the estimated number of greenfield and upgraded sites, along
unique broadband subscribers (that with existing levels of broadband
is, connections adjusted for multi-SIM network buildout and coverage.
usage) by the population aged 10 and
older. In addition, the definition of • Network backhaul: Infrastructure
broadband with respect to the 2030 capital investment estimates
target includes 4G/10 Mbps speeds integrate the need to invest in
or above only. As a result, penetration adequate transmission infrastructure
estimates in this model may differ from based on metro fiber, microwave, or
traditional penetration estimates. satellite. The model assumes that a
countrywide fiber backbone must be
Defining the Baseline and Notional in place to achieve universal access
to connectivity, using 4G speeds.
Target Thresholds
Estimates are based on the total
fiber backbone kilometers required
For the purposes of this assessment, the
to meet this overarching objective,
year 2016 was established as the baseline
based on available data and/or
from which broadband connectivity will
minimum fiber density target levels.
be doubled by 2021. In some markets,
however, this initial baseline was too low
Satellite for remote areas: It is generally
to be meaningful, and the proposed 2021
anticipated that, for a variety of reasons,
target has already been met as of the
a proportion of the rural population
end of 2018. In such cases, a notional,
in remote locations will typically be
20 percent minimum broadband
118 Broadband Commission Working Group on Broadband for All
out of the reach of traditional mobile Skills and Content Costs
networks. The forecast model assumes
this proportion at between 10 and 20 The availability of local, relevant content
percent of the rural population in most and adequate end-user skills are vital
countries, with variations depending on to a broader, more inclusive adoption
population density levels. Populations in of broadband connectivity services.
remote locations will generally need to Investments in skills and content may
be covered by local solutions consisting take the form of establishing tech hubs,
of satellite backhaul and fixed wireless local content ecosystems, or internet
access (predominantly Wi-Fi) for the last literacy training programs. The model
mile. In turn, infrastructure investment integrates these components, by
estimates include a satellite/Wi-Fi including costs per user for training and
requirement for remote communities. content. Baseline estimates are based
on a broad framework as outlined by the
Network Operational Expenditure World Economic Forum.81
(OpEx) Assumptions
Data Sources
For the purposes of this analysis,
infrastructure investment requirements The Digital Transformation Initiative
include estimates of network operating investment requirement model uses a
expenses, applied on an annual basis. variety of sources, including:
Network operating expenses typically
include repair and maintenance, site • GSMA data, for mobile broadband
leases, and other site operating costs. connections, user, network coverage,
For satellite/Wi-Fi infrastructure, and other data;
network OpEx includes support, user
management platform, and bandwidth • United Nations and World Bank, for
capacity recurring costs. population and demographic data;
Policy and Regulatory Costs • The Alliance for Affordable Internet,
for affordability and policy rating data;
The model assumes that most countries
will require some form of policy and • Xalam Analytics, for supplementary
regulatory intervention to develop broadband connections, some
and strengthen frameworks that network assumptions, and fiber
promote cost-effective rollouts, lower backbone data;
connectivity retail prices, and increase
broadband usage. This includes fostering • World Economic Forum, for skills and
the availability of adequate spectrum, content investment assumptions.
infrastructure sharing, open access
fiber, and other relevant regulations. Top • ITU, for population baseline analysis
line policy and regulation investment
requirements are estimated using In addition, key assumptions in the
assessments of policy support needed model are based on service provider
in each country and based on the policy data and/or insights garnered through
and regulation components of the consultations with key stakeholders. This
Affordability Driver Index (ADI) score as is explained in appendix B.
developed by A4AI.
Model Structure
Figures A.1 and A.2 explain how the
investment models for the 2021 milestone
and 2030 target were developed.
81. World Economic Forum. 2017. Internet for All: An Investment Framework for Digital Adoption.
http://www3.weforum.org/docs/White_Paper_internet_for_All_Investment_Framework_Digital_Adoption_2017.pdf
A “Digital Infrastructure Moonshot” for Africa 119
Figure A.1. Estimating Requirements for the 2021 Target: Model Structure
(Indicative)
• Average number of subs per 3G site varies • Network OpEx includes repair and
between 1500 and 3000 maintenance, site leases and other site
• ~100% of new 3G BTS are built on existing 2G operating costs.
sites/towers • Model assumes a basic cost of $17 per
• Likewise, ~100% of new 4G sites are built on incremental unique user for skill training and
top of existing 2G/3G sites to support local content creation.
• Assumes that ~10% of mobile network capex • Please refer to Excel model for additional
is allocated to backhaul detail
2021
2016
broadband
broadband
penetration
2x penetration
target
Number of
broadband users that
need to be added to
hit the 2021 target
Number of Number of
broadband broadband
users added to users added to
3G networks 4G networks
Number of 3G Number of 4G Total
BTS needed to BTS needed to number of
support the new support the new sites needed
customers customers to support
the new
customers
# of # of # of # of
sites greenfield sites greenfield
upgraded sites upgraded sites Skills &
Average Policy Content
network costs as costs per
Average deployment cost per site OpEx per a % of connected
(including backhaul) site CapEx user
Total
Total Total Total
skills and
Network Network Policy
content
CapEx OpEx Costs
costs
TOTAL INVESTMENT REQUIREMENTS
120 Broadband Commission Working Group on Broadband for All
Figure A.2. Estimating Requirements for the 2030 Target: Model Structure
(Indicative)
• Average number of subs per 4G site averaged at • Satellite capex only including terminal + Wi-Fi
5000 over the forecast period; setup; OpEx including costs of backhaul capacity
• We assume that new 4G BTS are primarily built • Model assumes a basic cost of $17 per incremental
on existing 2G/3G sites/towers; any requirements unique user for skill training and to support local
beyond the existing 2G/3G tower base is content creation.
considered greenfield. • While the model does not explicity split out CapEx
• Assumes that ~10% of mobile network capex is dedicated to the connection of public institutions
allocated to metro backhaul; backbone CapEx (schools, hospitals, etc.), it implicitly accounts for
estimated separately based on CapEx per km. it. It is assumed that a network that reaches ~100%
• Network OpEx includes repair and maintenance, of the population will similarly reach ~100%+ of
site leases and other site operating costs. institutions.
• ~10%-20% of rural population only accessible via • Please refer to Excel model for additional detail.
satellite/FWA infrastructure, depending on density
levels;
2018 2030
broadband broadband
penetration penetration
- 90%
Number of
broadband users
that need to be Number of Total
added to hit 90% broadband number
penetration users of sites
connected needed to
Total through support
number of satellite/ the new
Number of 4G BTS backbone Wi-Fi customers
needed to support fiber Kms
the new customers required
# of # of Number
sites greenfield of Satellite
Average
upgraded sites Terminals/
network
VSAT
OpEx
per site -
including
satellite
Policy Skills &
CapEx backhaul
Average deployment costs as Content
CapEx per capacity
cost per site (inclu. a % of costs per
per Km Satellite costs
metro backhaul) CapEx connected
Terminal user
Total Total
Mobile Total Total Total
Satellite skills and
Network Backbone Network Policy
Last Mile content
CapEx CapEx OpEx Costs
BB CapEx* costs
TOTAL INVESTMENT REQUIREMENTS
A “Digital Infrastructure Moonshot” for Africa 121
Appendix B.
Additional
Case Studies
for Practical
Understanding
of Universal,
Affordable,
and Good
Quality
Broadband
122 Broadband Commission Working Group on Broadband for All
Benefits of Broadband Infrastructure and Services
Box B.1. ITU’S Smart Village Platform
The Smart Village platform is a multistakeholder, cross-sectoral initiative
that showcases how to cost effectively accelerate the implementation of
the Sustainable Development Goals in remote areas through an integrated
development and technology platform model. Through this model,
governments can aim to increase the efficiency, security, and effectiveness
of public services while reducing their cost, promote transparency and
good governance, enhance traceability of transactions, and encourage data
exchanges, among others.
The ITU is collaborating with the Niger Agence Nationale pour la Société de
l’Information (ANSI), as well as other UN agencies and stakeholders to support
the smart village initiative in Niger, which launched in 2018, to drive sustainable
rural development in agriculture, commerce, education, finance, and health.
Source: https://www.itu.int/en/ITU-D/ICT-Applications/Pages/smart-village.aspx
Broadband Access Loan and Grant Programs
Box B.2. Broadband Access Loan and Grant
Programs
The European Fund for Sustainable Development has developed a guarantee
worth €74 million for loans by the European Bank for Reconstruction and
Development (EBRD) and the European Investment Bank (EIB) to invest in
the infrastructure needed to provide affordable high-speed broadband in
countries neighboring the European Union – especially outside the main urban
centers and in rural, remote, and unserved areas to enable businesses, public
administration, and the general public. The program will:
• bring fast broadband to between 300,000 and 600,000 homes in rural
areas
• enable new small companies outside the main urban centers and in rural
areas to grow and employ local people
• allow people and businesses to take part more fully in the digital economy
– for example, by selling goods and services or banking online
A “Digital Infrastructure Moonshot” for Africa 123
Innovative Business Models and Technologies
for Expanding Broadband Access
Box B.3. Developing a Public-Private
Partnership for International Fiber Optic
Connectivity – São Tomé and Príncipe
São Tomé and Príncipe provides one example of a successful partnership. In
2011 and 2012, the Government of São Tomé and Príncipe and the incumbent
local fixed and mobile telecommunications service provider, Companhia
Santomense de Telecomunicações (CST, a subsidiary of Portugal Telecom),
partnered to invest in access to the Africa Coast to Europe (ACE) submarine
fiber optic cable, as well as a submarine cable landing station. This shared
investment resulted in a substantial expansion of telecommunications
infrastructure to and within São Tomé and Príncipe, and sharp price declines
for most telecommunications services in the country. This, in turn, helped
to achieve the government’s related objective of attracting a second mobile
telephony and internet service provider to São Tomé and Príncipe in 2014.
The experience in São Tomé and Príncipe highlights the potential of PPPs
to absorb early-stage project risk and provide a bridge to substantial private
investment, both initially through the PPP and, subsequently, by facilitating
the construction of key infrastructure needed by new entrants. The availability
of low-cost international connectivity and access to the incumbent’s
infrastructure at cost-based prices were important considerations in attracting
Unitel as a competitive new entrant into the country’s telecommunications
market – a move which led to substantial decreases in prices for most
telecommunications services.
124 Broadband Commission Working Group on Broadband for All
The environment for investment in telecommunications infrastructure in
emerging markets has evolved substantially over the past few decades, with
important implications for the development of PPPs and other vehicles to fund
infrastructure in emerging markets. The factors that have helped to drive this
telecommunications infrastructure market evolution include:
• Private operators have experienced massive increases in mobile broadband
usage in their emerging market networks, and most now expect that this
rapid growth will continue.
• Active acquisition, construction, well-funded private infrastructure
investors (both service providers already active in-country and international
wholesale infrastructure access providers) are actively acquiring,
constructing, and investing in telecommunications infrastructure, including
fiber optic networks, towers (through focused tower owner-operators) and
data centers.
• Greater interest in sharing the ownership of telecommunications
infrastructure and capacity by operators, dedicated infrastructure providers,
banks and other high capacity users – both through the purchase of shares
and indefeasible right of use (IRUs) by, helping to create a market and set
tangible commercial values for such infrastructure assets.
• Lower cost and more proven infrastructure technologies that provide
high-speed broadband connectivity, including less expensive fiber optic
cable installations, more efficient software overlays that make fiber
optic terrestrial and submarine cables more productive, and wireless
technologies that provide broadband solutions for low-density areas and
irregular terrain.
• Increasing awareness by the government of the importance of
infrastructure sharing in reducing the cost of telecommunication
deployment – either by requiring operators to share infrastructure (for
example, towers), or by providing access to roads, railway lines or power
grids through a PPP.
These developments have reduced the risks to private operators in financing
and constructing telecommunications infrastructure, and have underpinned
a surge in telecommunications investment across emerging markets. While
the role of governments will remain important in structuring future PPPs, the
increase in available private funding would free up government funding to
achieve other pressing policy objectives while encouraging further use of PPP
structures that acknowledge the reduced risk and evolving interests of private
investors.
Source: A4AI. http://a4ai.org/wp-content/uploads/2015/11/PPPs-in-Sao-Tome-and-Principe.pdf
A “Digital Infrastructure Moonshot” for Africa 125
Box B.4. OneWeb – Strategy to Connect
Remote, Rural Villages and Roadways
OneWeb is building a global communications network powered from space to
deliver low-latency, high-speed broadband services globally. With commercial
services due to start in 2021, OneWeb will provide backhaul to last-mile
networks (for example, mobile and fixed wireless networks, and community
Wi-Fi hotspots) and direct-to-premise connectivity (for example, institutions,
enterprises, and households). A key market priority involves the thousands of
unserved rural/remote communities – especially those in sub-Saharan African
countries.
Despite the advantage of having no barriers from geographic location or
terrain, traditional satellite solutions have been considered a solution of last-
resort because of high-pricing and performance limitations (that is, slow speed,
high latency). Moreover, common business practices have exacerbated risks for
business cases already economically challenged (for example, lower densities,
ARPU, and/or adoption rates).
The OneWeb network will consist of 650 low earth orbiting (LEO) satellites
that will provide bandwidth comparable to high-speed fiber or 5G wireless
networks. Furthermore, OneWeb’s business model addresses the financial
viability risks through: sale of bandwidth (“pay as you grow”) and managed
services packages; upfront capital investment limited to the user terminal
equipment and installation; and public-private partnerships that pool capacity
demand and dynamically shift provision to areas of highest demand.
OneWeb considers such markets as a core part of its mission of bringing the
“Internet to everyone, everywhere:”
• Small, Scattered Villages: The average village has less than 500 people
with school enrollment at less than 50 students. The willingness to spend
is limited to $2-3 per month/user on internet access. Microwave links and
fiber lines are technically or economically infeasible, especially without
central planning and coordination.
• Operator Dynamics: Potential operators of a Wi-Fi network are
fragmented. The MNO may soon deploy a 3G network; however, 4G
services are only planned for the distant future given the low investment
returns.
• Government Programs: Universal service funds are limited, unavailable, or
small for sustainable purposes.
126 Broadband Commission Working Group on Broadband for All
Potential Service Package and Deal Structure via Public-Private Partnership
The potential solution design can vary, but the following public-private
partnership arrangements are being considered:
• Pooled Purchase Contract: Government stakeholders and operators (for
example, MNO, ISP) may band together to aggregate demand and purchase
capacity. The master contract holder would then assign bandwidth to
each group member, and service packages to each user-terminal, through
OneWeb’s service portal.
• Multidimensional Network and Cost Sharing: The last-mile solution
envisages a community Wi-Fi public hotspot that also has a fixed wireless
link to a school. The school would serve as the anchor client for the
hotspot owner. The government would have access to reporting and
analysis regarding usage at the school level. Capital expenditures (for user
terminal and base station) would then be shared across different user
segments.
• Redundant Links: The government and/or operators could seek satellite
services for redundant links to their terrestrial network. Otherwise,
bandwidth would be fully utilized for everyday broadband. During the
increasingly common event of a fiber-cut, mission critical sites could be
quickly activated through OneWeb. This approach is cost effective as it
obviates the need to purchase dedicated capacity for redundancy. But
the option to have this a redundant backup would incur a charge, which
in effect would contribute to the contract value and further drive volume
discounts.
• Alignment of Cost with Usage: The MNOs will be able to dynamically
allocate capacity to remote and rural roadways and towns with limited
usage – aligning cost with usage. Similarly, public hotspot operators would
only pay for the usage, as long as the master contract calls for a minimum
amount of capacity purchased.
A “Digital Infrastructure Moonshot” for Africa 127
Box B.5. KT’s Copper Wire-Based Gigabit
Internet Technology Solution
KT developed GiGA Wire solution to improve gigabit broadband accessibility
for old buildings and historical sites where fiber installation is not available or
difficult. FTTH is considered to be the best solution for fixed broadband access,
however, last mile deployment is not possible in every situation. Since it can
cause environmental impact because of overhead cable installation, cable
attachment on the facade and cable work inside of the building, GiGA Wire
was introduced to provide gigabit broadband through existing copper/coaxial
infrastructure.
The GiGA Wire is a field-proven, market-oriented solution to provide over
1.4 Gbps of speed with existing copper/coaxial infrastructure. GiGA Wire can
provide gigabit broadband service to customers with shorter lead-time and
smaller investment cost than FTTH. In particular, GiGA Wire prevents damage
to buildings because it does not require any additional wiring by utilizing
existing lines and provides a quick and easy installation.
GiGA Wire is based on the international standard, ITU-T Gigabit Home
Networking, G.hn standard. It can be provided through copper and coaxial
cable and can also coexist with legacy xDSL technology and different vendors’
solutions in the same bundle.
KT implements GiGA Wire solution in old apartment complexes and historic
sites where difficult to attach fiber on façade or deploy fiber in vertical shaft. It
provides broadband speeds seven times faster than legacy VDSL.
KT has developed partnerships with several governments and companies in
the United States, Malaysia, Botswana, and so on, and pilot projects have been
conducted in Turkey and Egypt.
128 Broadband Commission Working Group on Broadband for All
Box B.6. Talia’s Quika Brings HTS Ka Band
Services to Remote Locations
Quika has partnered with GEO, High Throughput Satellite (HTS), Ka band providers
to provide low-cost internet services to remote locations with 0.75m antennas:
Arabsat-5C for Afghanistan and Iraq; Yahsat-3 for eleven countries in Africa. Later
in 2019, OneWeb’s LEO constellation will provide low latency services in the
Middle East and Africa regions with potentially full global coverage.
Quika’s unique business model integrates advertising and content to make
high-speed, low-latency broadband affordable as well as sustainable. Quika
Free’s consumer model is free to the consumer and funded by advertising or
government-funded Public Service Announcements (PSAs). The integrated
Wi-Fi network with the satellite system allows user access by computer
or smartphone. Communities have become empowered through the
transformational educational, economic, and social benefits online connectivity
brings.
Quika addresses the availability, affordability, throughput, simplicity and
sustainability issues of broadband services to the over 70 percent of African
households unconnected. Quika partners with local licensed operators and
regulators using USAFs to implement current and expanded coverage in African
and the Middle East. Quika’s service platform is scalable to support the regional
expansions and consumer-oriented applications.
Box B.7. The Smart Africa Broadband
Strategy Document
In an effort to improve the situation of broadband and internet, Smart Africa
launched an initiative with the aim of making broadband accessible and
affordable for the member states and organizations. This project seeks to
define a strategy which will serve as an overarching guideline for the member
states, on increasing the broadband penetration in Africa, with specific focus
on pragmatic ways of increasing the broadband penetration and finding
innovative economic models to support the projects that come out of this
strategy.
The vision of this strategy is encompassed into the Alliance global strategy to
transform the continent into a single digital market and a knowledge-based
economy by 2030.
A “Digital Infrastructure Moonshot” for Africa 129
A working group comprising of representatives from all member states and
some selected private sector members such as Facebook, Inmarsat, SES,
Orange, AfDB, GIZ, RISA were present at the first consultative meeting held on
the 30th and 31st July 2019 in Kigali, Rwanda.
The purpose of the working group was to identify the policies, rules and
guidelines the countries must put in place to ensure they are on the path
to achieving the Alliance vision, both individually and collectively, through
broadband connectivity. At the end of the workshop, a vision to ‘’Achieve
affordable broadband connectivity of 50% increase for Africa Citizens by 2025
facilitated by harmonized policy and regulation that emphasizes private sector
at all levels to enable the transformation of the continent into a single digital
market and a knowledge-based economy’’ was agreed upon.
Smart Africa Projects Towards the development of affordable digital
infrastructure in Africa:
• Inter-African cross border connectivity: This project being a collaboration
between the private sector, the republic of Guinea and Smart Africa, is set
to connect all the African Countries either by Submarine, Terrestrial or
Satellite technology. In its first phase, 3 countries comprising Mali, Guinea
and Senegal have been connected, 4 more are being worked on to be
closed by the end of 2020. The second phase consists of ten (10) African
countries and scheduled to complete by 2021.The remaining African
countries, with priority on the Smart Africa members will be in the third and
final phase, planned to be completed by 2025.
• One Africa Network: The goal of this project is to build infrastructure to
keep Africa traffic within Africa and to lower the tariff and costs of roaming.
This initiative started about 3 years ago and, until now, 7 west African
countries have activated this agreement as well as 3 east African countries.
• Data centers: The lack of local infrastructure, such as datacenters, diverts
internet traffic from Africa, poses quality problems (latency) and makes
internet costs high. African countries thus have no control over their data,
which leads to security and governance problems. Africa must face these
problems quickly, by focusing on developing storage and data processing
infrastructures in Africa.
130 Broadband Commission Working Group on Broadband for All
Digital Skills Development
Box B.8. GSMA’s Mobile Internet Skills
Training Toolkit
GSMA’s Connected Society program has developed the Mobile Internet Skills
Training Toolkit (MISTT), a resource for mobile operators, NGOs, development
organizations, and governments wanting to provide training to improve
people’s basic knowledge and understanding of the mobile internet. It provides
a visual and easy-to-understand introduction to using the mobile internet on
an entry-level smartphone:
• The MISTT is available in English, French, Hindi, Bengali, Kinyarwanda, and
Swahili and may be translated into other languages.
• The GSMA has been working to implement the training with a number of
partners including Tigo Rwanda, Banglalink in Bangladesh, DOT and the
Government of Rwanda, Ooredoo and Facebook in Myanmar, and several
others with positive results with large increases in internet adoption levels.
• In 2017, a pilot study of the toolkit was conducted in Sub-Saharan Africa,
by Tigo Rwanda. This resulted in over 300 sales agents being trained to
use the MISTT, who in turn trained over 250,000 data-paying customers.
Overall, Airtel Tigo Rwanda witnessed substantial benefits with 77 percent
of MISTT trained customers increase their data usage in the period after
their sales agents introduced the training, and MISTT trained sales agents
managed to increase the number of new data subscribers by 15 percent.
This led to a 240 percent increase in quarterly return on investment.
• More recently, by using a force of 3,200 sales agents, Banglalink trained
over 117,000 customers over three months following which, amongst
customers who were trained, there was a 228 percent increase in mobile
internet usage, a 143 percent growth in data revenue, and increased traffic
to Banglalink’s self-care app.
Those who received the training were able to access key services in the areas
of education, health, financial services, often for the first time, leading to
increased economic empowerment and socioeconomic opportunities.
Source: https://www.gsma.com/mobilefordevelopment/connected-society/mistt/
A “Digital Infrastructure Moonshot” for Africa 131
Box B.9. KT’s GiGA Island Initiative
KT’s GiGA Island Initiative cooperated with Bangladesh ICT Department,
International Organization for Migration (IOM), Korea International Cooperation
Agency (KOICA) and local nonprofit and nongovernment organizations
to improve the standard of living in Moheshkhali Island in Bangladesh. KT
introduced GiGA network and ICT solutions to solve social problems including
digital skills, education, medical services under Bangladesh government’s
national development policy named “Digital Bangladesh 2021.”
Moheshkhali Island has a population of 320,000 with a density of 900 per
square kilometer. The island, geographically isolated, lacks access to universal
services. The average literacy rate of the island is 30 percent, much lower than
the Bangladesh average of 50 percent. Additionally, there are a number of
public institutions, including schools and local medical clinics; there are not
enough teachers capable of teaching foreign languages or upper-level courses.
In medical services, there are limited hospitals, a low ratio of doctors to the
population – which is only 11: 20,000 – and a lack of female doctors to deliver
medical support and reproductive services that the population deserves. KT has
addressed digital skills and local content in four major industries, successfully,
as follows:
1. Remote education – creating/providing smart classrooms
and e-learning content
• Partnered with the NGO
Jaago Foundation, created
smart classrooms in 12
elementary schools
• Provided English and
literature classes using
e-learning content
(Teacher’s Portal)
2. Digital healthcare –
connecting through
telemedicine and mobile
health system and devices
• Connected community
clinics using the
telemedicine system
• Utilized mobile health
check-up devices
for diagnosis (Sonon
(ultrasound device), Yodoc
(urine tester), myCheck
(blood tester))
132 Broadband Commission Working Group on Broadband for All
3. Information access – teaching
ICT skills and building IT space
• Created IT space which can be
used as an IT classroom and
provides IT information
• Developed a recruiting website
specifically for low-skilled, manual
workers
4. E-commerce – manage and
connects to customers through
digital platform
• Partnered with KOICA, created
an e-commerce platform that
directly connects to customers
• Activated the AICC (Agriculture
Information and Communication
Center) and IPM (Integrated Pest/
Crop Management) by connecting
to an e-commerce platform
Source: KT Economics and Management Research Institute. 2018 B20 Taskforce Digital Economy, and KT
Integrated Report. 2019. Industry 4.0 Policy Paper.
Box B.10. ISTIC’s Double Hundred
Universities Cooperation Project
The International Science Technology and Innovation Centre for South-South
Cooperation (ISTIC), which operates under the auspices of UNESCO, is an
international platform for cooperation among developing countries to increase
the capacity for the management of science, technology, and innovation
in developing countries. ISTIC has many programs promoting south-south
cooperation, prioritizing initiatives with African countries.
One example is the Double Hundred Universities Cooperation Project, started
in 2017, a mentorship initiative that matches one hundred technical universities
in China with one hundred technical universities from countries with relations
with China, many of which are from African countries. Faculties and students
involved in the project focus on emerging technological issues, such as big
data, artificial intelligence, and the Internet of Things (IoT). The project will
enhance digital skills, nurture digital entrepreneurs, encourage digital startups,
and also train personnel in proper maintenance and operation of digital
infrastructure and the application of digital technologies with support from
digital technology corporations.
Source: http://www.istic-unesco.org
A “Digital Infrastructure Moonshot” for Africa 133
Box B.11. WomEng South Africa with One
Million STEM Girls Project
NAADIYA MOOSAJEE HEMA VALLABH
Co-founder Co-founder
WomEng was established in South Africa in 2006 by Cofounders Naadiya
Moosajee and Hema Vallabh. Naadiya is on the World Economic Forum Global
Future Council on Gender Education and the Future of Work, while Hema
holds a seat on the World Federation of Engineering Organizations (WFEO)
Women in Engineering Standing Technical Committee.
WomEng was founded with the objective of encouraging girls to consider
STEM (Science, Technology, Engineering, Mathematics) as a career by creating
STEM awareness for girls and developing, mentoring, and supporting them
through their engineering journey. The model for extending the reach of STEM
awareness to one million girls is based on an exponential train-the-trainer
scaling model, working with individuals and/or organizations passionate about
STEM, who can sign up for a #1MillionGirlsInSTEM toolkit to become an official
WomEng Activator. The reach is tracked on a live Google Map showcasing
the number of countries, cities and girls reached. The #1MillionGirlsInSTEM
campaign is a key component of WomEng’s efforts to meet the Sustainable
Development Goals by investing in girls’ education and creating gender equity
for the entire engineering sector.
WomEng has gained international recognition by winning awards and honors,
such as Special Mention and Award by the Government of China and UNESCO
at the BRICS Summit, China, 2017; “Fortune” Most Powerful Women Awardee
2017; Global finalist for the 2015 Qatar WISE Award for Innovation in Education;
Finalist for Airbus Diversity Award in 2015; Best Practice in TVET awarded by the
African Union in 2015, and Top NGO in South Africa awarded by Top Women
Magazine in 2014.
Source: https://www.womeng.org
134 Broadband Commission Working Group on Broadband for All
Box B.12 Shared-Value Partnership for
Equitable Access to Digital Literacy in Kenya
Nokia and the Finnish National Committee for the United Nations
Children’s Fund (UNICEF) and UNICEF Kenya have launched a shared-value
partnership, to increase equitable access to digital literacy for some of the
most disadvantaged children in Kenya. This includes girls and children with
disabilities in urban informal settlements and some of the most remote areas
of Kenya.
The partnership builds on the Government of Kenya’s investment in the Digital
Literacy Project which provided one million tablets to primary schools with a
focus on improving the availability and use of quality digital content. In order
to address challenges and unlock opportunities for digital learning and literacy,
the partnership between Nokia and UNICEF Kenya brings together:
• Stakeholders from the Government of Kenya’s Ministries of Education
and ICT.
• The Kenya Institute of Curriculum Development (KICD).
• Children, teachers, content providers, and mobile network operators in
Kenya.
As an initial step, the Accessible Digital Textbook with special features for
children with hearing, visual and intellectual disabilities, was successfully
piloted in schools during the first quarter of 2019 and will be launched by the
Government of Kenya more widely. The textbook, which is the first of its kind,
was produced by KICD with the active involvement of disability stakeholders
who infused different media overlays with audio for children with visual
impairment, simplified text for children with intellectual disabilities, and Kenya
Sign Language video inserts for children with hearing impairment.
Source: Nokia press release, https://www.nokia.com/about-us/news/releases/2019/06/12/
nokia-and-unicef-launch-partnership-to-boost-digital-literacy-in-primary-schools-in-kenya/
A “Digital Infrastructure Moonshot” for Africa 135
Appendix C.
Multistakeholder
Consultation
Process
136 Broadband Commission Working Group on Broadband for All
As part of the strategy development A number of consultation meetings took
process, the WBG and A4AI facilitated place as follows:
multistakeholder consultation meetings
with key ICT industry actors between • December 11, 2018 – WG Kick-
December 2018 and July 2019, including Off Meeting to discuss objectives,
with the Commissioners from the approach, and outline of deliverables
Broadband Commission for Sustainable (Virtual)
Development’s Working Group on
Broadband for All, A4AI members
• February 4, 2019 – (Virtual)
and partners, and WBG partners. The • February 21, 2019 – Meeting on a
consultation members helped identify preliminary assessment, methodology,
possible ways of increasing connectivity and assumptions (Virtual)
and reaching full coverage in Africa. The
group included representatives from • February 27, 2019 – (Mobile World
over 35 private companies, international Congress 2019)
organizations, and civil society groups
(see below for a list of the members). • March 21, 2019 – (Virtual)
• April 15, 2019 – Meeting on strategy
and roadmap outlines, core
principles, and monitoring framework
(Virtual)
• April 17, 2019 – Meeting to review
the final investment model and draft
strategy and roadmap outline (Virtual)
• April 28, 2019 – (Broadband
Commission Annual Meetings)
• May 22, 2019 – (Virtual)
• July 9, 2019 – Meeting on draft
report (Virtual)
Throughout this process, in the spirit
of open communication and inclusivity,
the consultation members were
encouraged to provide feedback to the
investment estimate modeling process,
explain their organization’s suggested
technological and policy approach to
doubling connectivity and reaching full
coverage in the two regions (including
investment estimates associated with
each investment option), and other
thoughts on the strategy of the initiative.
The consultation group’s inputs were
incorporated throughout this strategy
document.
A “Digital Infrastructure Moonshot” for Africa 137
Members of the Multistakeholder
Consultation Group
• African Development Bank • Nokia
• African Union • Novartis Foundation
• Alliance for Affordable Internet (A4AI) • OneWeb
• America Móvil • Organisation for Economic
Co-operation and Development
• Association of Progressive
(OECD)
Communications (APC)
• Avanti • Paradigm Initiative
• Bluetown • SAMENA Telecommunications
Council
• Collaboration on International ICT
Policy in East and Southern Africa
• Smart Africa
(CIPESA) • Talia/Quika
• Ericsson • Telefonica
• European Commission • The Office of Electronic
Communications (UKE), Poland
• EUTELSAT IGO
• Facebook • United Nations Development
Programme (UNDP)
• Google
• International Science,
• GSMA Technology & Innovation Centre
• Huawei for South-South Cooperation
(ISTIC-UNESCO). Malaysia
• Inmarsat
• UNISOC
• Intelsat
• United Nations Office of the
• International Telecommunication High Representative for the Least
Satellite Organization (ITSO) Developed Countries, Landlocked
• International Telecommunication Developing Countries and Small
Union (ITU) Island Developing States (UN-
OHRLLS)
• International Trade Centre (ITC)
• United States Agency for
• Internet Society International Development (USAID)
• KaiOS • Vieira de Almeida
• Kenyatta University • Village Telco
• Korea Telecom (KT) • Web Foundation
• MainOne • World Economic Forum (WEF)
• Microsoft • Xalam Analytics
• MTN
138 Broadband Commission Working Group on Broadband for All
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