Bridging continents: The role of connectivity in Africa’s digital transformation

Africa’s IT landscape is experiencing accelerated digital transformation due to a young, tech-savvy population, boost in gross domestic product (GDP), and increase in demand of low-latency connectivity.

While expanded internet access drives digital growth and opens opportunities for the adoption of more digital solutions, challenges remain in meeting the continent’s connectivity needs. Simply put, there’s a direct link between economic progress and IT infrastructure, with robust trade dependent on a strong digital foundation.

The state of connectivity in Africa

The African Union’s cross-border trade ambitions hinge on a connected Africa with ready access to the internet’s core data routes (called the “backbone of the internet”), neutrality, and cross-governmental cooperation.

The first challenge Africa must tackle is increasing interconnection throughout the continent. Interconnection opens access to foreign markets, but it also encourages cross-continental trade.

But for the continent to expand to international markets, it needs strong and dependable access to interconnection hubs. And for Africa to become a global powerhouse in the digital economy, leaders on the continent must prioritize:

• More subsea cable connections to enhance reliability in the event of a cut in other cables
• Terrestrial cable networks to rural areas with minimal transportation infrastructure
• Increased investment in digital transformation infrastructure

The role of subsea cables in Africa’s digital economy

Undersea cables serve as a critical part of Africa’s connectivity journey. Take the regional economic community of 16 countries known as the Southern African Development Community (SADC), for example. It launched a Regional Information Infrastructure Project, enabling access to the international internet backbone through undersea cables.

Member states made the first steps to cross-border trade by establishing cross-border transmission links. These transmission links enable the buying and selling of energy between them and leaders of the South African Power Pool. This has fast-tracked infrastructure projects to upgrade or create energy systems in less developed countries in the SADC trade bloc.¹

Overview of major subsea cable projects in Africa

With economic progress, Africa needs comprehensive connectivity to fulfill its potential, though the continent has seen an exponential increase in capacity and network infrastructure from its shores compared to those of Europe and the Middle East.

For example, 2Africa connects 33 countries (16 of which are in Africa) and delivers internet access to 3 billion people (30% of the world’s population). Other major connectivity projects of note include:

• The Africa-1 subsea cable system: A 20,000 km submarine cable system linking Europe, the Middle East, and South Africa.
• The PEACE (Pakistan and East Africa Connecting Europe) cable: A 15,000 km cable spanning from France to Singapore with landing stations in North Africa, East Africa, and the Middle East.
• The Equiano subsea cable system: A 12,000 km Google-owned system from Portugal to South Africa with several branches either planned or in operation along the west coast of Africa. Its first landing is in Lagos, Nigeria, with planned branches in Togo and Namibia.

Note: Submarine Telecoms Forum lists Equiano’s biggest benefit as redundancy to serve as a backstop against outages that slow or put a stop to trade and other communications.

Amidst this progress, however, the lack of data center access raises a big challenge to Africa’s connectivity, as most countries in Africa have a national data center.² In fact, nearly 300 million Africans live more than 50 km from a fiber or cable broadband connection.³

With Africa poised for expansive economic growth stemming from its burgeoning digital transformation, a lack of connectivity threatens the bright future the global community sees for the continent.

The importance of terrestrial cable networks

Without the resilience of international connections within Africa to global digital infrastructure through subsea cables, analysis of the number of data centers on the continent becomes futile.

That’s why major service providers have invested in terrestrial connections that link African nations and subsea connections linking the African continent to the rest of the world.

One recent example from the cloud computing space is Google’s announcement of the Umoja fiber optic cable route, which connects two of the continent’s strongest economies, Kenya and South Africa. Other examples are the efforts of Orange linking markets in West Africa or cross-border fiber routes by Yafibr.

Also, the investments from satellite companies in Africa will bring internet access to the masses. Either by providing backhaul links for 4G/5G base stations by Avanti or SES or direct internet access, such as SpaceX's Starlink or Amazon's Project Kuiper.

Increased digital infrastructure investment unlocks Africa’s economic potential

Other drivers of digital infrastructure include latency and data sovereignty. From South Africa to Kenya and the other 52 African nations, each will want to retain data within their countries to protect state secrets, the privacy of citizens, and intellectual property rights. But to build this data residency, increased data center and digital infrastructure investment is needed.

Let’s examine recent trends in digital infrastructure investment. For instance:

• The African data center market has a 12.34% compound annual growth rate, outpacing North America’s data center market growth projections by 1.34% between 2024 and 2029.^4,5
• The African continent has made much needed progress in terrestrial network infrastructure and boasts 1.2 million km of terrestrial fiber networks as of 2022. That’s up from 820,000 km in 2017. Yet, it's clear the continent will benefit from more progress in this area⁶
• The African Union’s strategy for digital transformation in Africa lists expanded data center infrastructure and cross-border connectivity as a main priority for the continent’s growth plan.⁷

Increased investments in data center development unlocks the emerging potential of Africa’s economy. Partnering with a provider like us with an expansive network of data centers on the African continent speeds strategic development for enterprises looking to tap into the burgeoning economy.

The impact of improved connectivity in Africa

Intra-African trade stands at 16% of global exports today. In comparison, in Europe and Asia that percentage is 69% and 59%.⁸ To increase trade between nations, the African Continental Free Trade Area (AfCFTA) proposes an incremental reduction of tariffs, which is estimated to boost trade to 52%.⁹

With the internet economy of Africa poised to make up 5.2% of the continent’s GDP or $180 billion by 2025, it’s clear that navigating the digital landscape of this continent filled with opportunity carries risk and reward.¹⁰ By partnering with a data center provider that understands the digital economy in Africa, enterprises and service providers can focus on choosing markets that will not only contribute to the digital economy but also propel Africa further into the digital landscape of the future.

As we look to future trends and developments in Africa’s digital landscape, investment will undoubtedly increase from private and government sources. However, in the next 5–10 years, Africa’s network infrastructure will need to make major leaps forward to reach the goals set by the African Union, which seeks universal internet access on the continent by 2030 — just six years away. Mobile broadband would be the fastest path to universal connectivity for Africa since terrestrial infrastructure development can cost upward of $30,000 per mile.¹¹

Our role in Africa’s emerging connectivity infrastructure

For enterprises keen on leveraging digital integration in Africa, the prudent path forward is strategic partnerships. As the primary presence in digital transformation on the African continent with data center locations in all major markets, including South Africa, Nigeria, Ghana, Kenya, and Mozambique, Digital Realty is that partner.

Our diamond strategy consists of connecting South Africa with West Africa, East Africa, and Marseille, all through our subsea cable facilities with the highest standards for resiliency and sustainability.

Tapping into Africa’s potential in the global digital transformation

Success in digital transformation in Africa will take commitment, knowledge, and investment. Connectivity can consume much of those three elements, as it is the physical foundation of digital infrastructure.

Subsea cables and colocation data centers remain critical to enterprise success worldwide. Yet in Africa, the need for strategic-minded leadership in such an untouched environment has never been more essential.

Our extensive network and local expertise can help you navigate this dynamic environment and unlock the full potential of Africa's digital economy.

To discuss your African digital infrastructure strategy, please reach out to us here.

• Africa's digital economy and transformation
• Digital transformation in Africa: Insights from industry leaders

1. South African Research and Documentation Center, South African Power Pool Monthly Report, January, 2021.

2. UNECA, Digital Infrastructure in Africa, February, 2024.

3. African Union, The Digital Transformation Strategy for Africa (2020-2030), May, 2020.

4. Mordor Intelligence, Africa Data Center Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis Up To 2029, June, 2024.

5. Statista Market Insights, Data Center - North America, July, 2024.

6. United Nations Economic Commission for Africa, Digital Infrastructure in Africa, February, 2024.

7. African Union, The Digital Transformation Strategy for Africa (2020-2030), May, 2020.

8. The Brookings Institute, The Economic Significance of Intra-African Trade, Andrew Mold, August, 2022.

9. Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project, Deepening Regional Integration in Africa, 2012.

10. International Monetary Fund, Regional Economic Outlook, Sub-Saharan Africa: A Tepid and Pricey Recovery, April, 2024.

11. Empower Africa, Internet Infrastructure in Africa, Leah Ngari and Shira Aliza Petrack, 2020.