IN CONVERSATION WITH ALAIN EBOBISSÉ, CEO OF AFRICA50

The COVID-19 pandemic has highlighted, amongst many things, the critical need to accelerate the growth of ICT infrastructure in Africa. Alain Ebobissé, CEO of Africa50, addressed questions on this issue during a webinar in July this year, convened to announce finalists of the Africa50 Innovation Challenge.

Ebobissé highlighted the evident positive economic impact of increased Internet access. World Bank studies, he said, had showed that an additional 10% Internet penetration can lift GDP by up to 4% in developing countries. And empirical evidence had highlighted that African firms using the Internet, he explained, are nearly four times as productive as those that do not.

Internet penetration was an issue and the lack of infrastructure, including that last mile internet connectivity, was a key constraint. It is this that the Challenge wants to overcome, and the private sector can provide the innovative solutions to leapfrog these constraints, as they did with cell phones two decades ago, he said.

How has the COVID-19 pandemic highlighted the need to improve ICT infrastructure in Africa?

ICT infrastructure, and especially the internet, has proven indispensable for maintaining a functioning economy in many countries and in addressing the health emergency.

In countries with good internet connectivity students could pursue their education online, merchants could sell via ecommerce platforms, government offices could provide services, and businesses could hold virtual meetings and keep functioning.

We can attest to this at Africa50. With advanced IT systems and good connectivity, our teams remained fully operational.

What more needs to be done to connect Africa?

While Africa’s most advanced countries and cities have some of the necessary ICT infrastructure, others, and especially remote rural areas, are deprived of connectivity and the socio-economic resilience it can provide.

Investing in ICT infrastructure is therefore key to generating inclusive growth and building Africa’s resilience. Infrastructure such as broadband connectivity networks and data centers is critical, but disruptive technologies are also needed to cater for the specific needs of the African context. We must find business models that are commercially viable and self-sustaining. Another key aspect is providing enough relevant content and services to increase demand to a level making investments economically viable. Related to this, prices for data and devices must fall to a level where people can afford access.

There is also a need to build supporting ecosystems, where new technologies can be developed, such as innovation hubs.

All of this requires coordination and collaboration between various stakeholders, from investors, telecom operators, governments, pan-African organizations, financial institutions, to address connectivity in a holistic manner.

How can investments in digital infrastructure support the economic recovery?

To attract investors in this space like in other infrastructure subsectors, governments must create a conducive regulatory framework and be willing to share the risks, with DFI help when necessary.

In most ICT sectors private sector participation is essential. ICT systems are complex and must be kept up to date with the latest innovations, which private investors can provide. Africa50, with ample equity capital and proven project development expertise, can serve as a convener of and bridge between these investors and the public sector to speed along ICT development.

Allow me to also mention a financial mechanism we have been promoting to free up public funding to fight Covid – asset recycling. This involves private investors buying or getting concessions for public infrastructure. It can also work for ICT systems, such as fibre optic and telephone networks that provide a steady revenue stream.

80% of submissions for the first Africa50 Innovation Challenge came from Africa. Is this an indication of a thriving innovation ecosystem?

Absolutely. Africa’s ICT ecosystem has grown tremendously over the past 20 years. By mid2019 there were 643 tech hubs of various dimensions in almost half of all African countries, a threefold increase over 2016.

The world’s largest ICT firms are taking note. Aside from M-Pesa, Africans have developed applications for anything from agricultural and weather information, to food delivery, and motorcycle taxis. Under Covid, health applications gained in importance, allowing people to access information on the virus and counter measures.

Indeed, the trend of Africans inventing African solutions for African challenges is accelerating tremendously. Africa50 is pleased to be part of this.