As Africa's digital economy grows, expensive internet is hampering investor activity in some countries

A new report detailing the cost of mobile data in different markets around the world shows why internet usage in most of Africa remains low despite broadband internet coverage growing band.

The Worldwide Mobile Pricing 2022 report, which surveyed 233 countries, shows that five of the 10 most expensive countries in the world to buy mobile data are in sub-Saharan Africa.

Mobile data is so expensive in these countries that 1 GB costs at least $10, which is 250 times more expensive than in Israel, the country with the cheapest data in the world.

In Sao Tome and Principe, 1GB of data costs $29, while in Botswana it costs $16. Togo ($13), Seychelles ($13) and Namibia ($11) are the other African countries with the most expensive data packages, hampering economic growth and job creation.

Dan Howdle, consumer telecoms analyst at price comparison site Cable.co.uk, said in a statement: "At the more expensive end of the list, we have countries where often the infrastructure is not excellent, but also where consumption is low. very small."

"People often buy data packets of only ten megabytes at a time, which makes a gigabyte a relatively large amount of data and therefore expensive to buy," he said.

In Africa, internet is cheapest in Ghana at $0.61, followed by Somalia, Nigeria, Tanzania, Sudan, Eswatini, Kenya, and Mauritius, where 1GB Mobile data costs less than a dollar. Clearly, affordable internet could explain the rise of digital economies in these countries, hence their appeal to venture capitalists and tech investors.

Notably, the cost of mobile data has dropped significantly this year compared to last in Malawi ($26 to $2), Chad ($23 to $2) and Equatorial Guinea ($50 to $10) - removing them from the list of countries. with the most expensive mobile data.

Why affordable internet is needed in Africa

Over the past eight years, the number of people connected to the internet in Africa has doubled to 28%, due to increased broadband internet coverage and smartphone penetration. However, more than half a billion (53%) people in regions with mobile broadband networks are still not connected due to high data costs, according to the 2021 State of the Mobile Internet report. in Africa from the GSMA, an umbrella organization representing mobile operators worldwide.< /p>

But that is likely to change as tech titans like Google and Meta are investing heavily in infrastructure to bring what they say is fast and cheap internet to Africa.

Affordable internet and growing smartphone adoption, which is expected to grow from 64% last year to 75%, means that Africa's digital economy, currently valued at $115 billion and expected to multiply by six by 2050, will have a positive impact on other sectors of the economy.

Endeavor projects that 44 million jobs could be created if internet penetration reached 75%, a 2.5% increase in GDP per capita for every 10% growth in mobile phone penetration, as well global recognition and increased investment by tech giants and international investors.< /p>