Broadband expansion drives economic participation in Africa

The digital economy in Africa is transitioning from a focus on basic connectivity to a need for affordable, scalable, and high-capacity broadband that supports data-intensive activities. Research conducted by the Bureau for Economic Research at Stellenbosch University, sponsored by Nokia, indicates that home fibre has a significant impact on economic participation in township areas like Kayamandi. The study found that long-term fibre access was associated with a twofold increase in the probability of self-employment, as residents used the internet to find work or expand micro-enterprises.

In South Africa, competition in the affordable fibre segment is increasing. Ilitha Telecommunications CEO Vuyani Jarana notes that while affordability is a critical factor for lower-income and rural communities, it is not the sole driver of adoption. Successful expansion requires understanding specific community use cases and ensuring network quality. Ilitha recently expanded its network to the O. R. Tambo District in the Eastern Cape, having already connected 27 communities across the Eastern Cape and KwaZulu-Natal.