Speakers

Africa has seen a surge in broadband penetration, with over 160 million new users gaining access between 2019 and 2022. However, as Voscarides noted, the region still struggles with infrastructure challenges.

“The Middle East is a natural extension that could go to at least the East African part that we’re presenting,” he said, citing Djibouti as a crucial interconnect point. Djibouti’s strategic location and partnerships, including those with Du and other carriers, facilitate the import of equipment and connectivity services.

Voscarides highlighted past difficulties in obtaining cross-connects and installations in Djibouti, a situation that wingu.africa has worked to simplify. “It was extremely tricky for a customer to even get a cross-connect. It would take six months,” he recalled. By easing logistical and regulatory hurdles, Voscarides’s company helped drive connectivity and competition, leading to lower prices and increased business opportunities.

Coker echoed this sentiment, emphasising Africa’s increasing integration with the Middle East. “If you look at what happens on this show, it’s almost like you’re at Capacity Middle East and Africa,” he observed, underlining the growing synergy between the regions. He stressed the importance of proximity and data exchange, noting that Africa is increasingly being recognised as a critical part of the global digital ecosystem.

Malik asked the panellists about the economic advantages of stronger Africa-Middle East connectivity. Ogbunude referenced IFC’s past studies on digital dividends, highlighting the GDP impact of increased broadband penetration.

“We did a study about 12 years ago looking at digital dividends and the impacts on economic growth,” she noted, estimating that a 10% increase in broadband penetration could lead to a 1.4% GDP rise. With evolving regional collaboration, this figure is likely to increase.

Ogbunude also pointed to specific sectoral benefits, particularly in agriculture and healthcare. “What we have is access to market, being able to effectively monitor those production farms,” she explained. Enhanced connectivity facilitates digital jobs, cross-border trade, and improved service delivery in healthcare and education.

Coker reinforced the macroeconomic implications, particularly in terms of data classification, workload distribution, and sovereign data regulations. “Sovereign data rules are now being not just per country, increasingly per continent,” he remarked.

He also highlighted the role of Africa in global data flows, linking the Middle East and the Far East. “The Red Sea cable cuts last year showed how critical this infrastructure is,” he added, describing how disruptions impacted global connectivity.

Voscarides expanded on this idea, referring to Africa’s evolving data centre ecosystem. “The network’s really like a fabric woven,” he said. The introduction of new cables, such as an upcoming landing in Djibouti, is already driving down costs and increasing interconnectivity. “The more cables that come in, the more competition you get,” he explained, urging financial institutions to support last-mile connectivity.

The conversation then shifted towards the challenges of building digital infrastructure. Ma, from HMN Tech, provided a technical perspective, highlighting Africa’s evolving submarine cable landscape.

“Ten years back, there were only a few cables like SEACOM. Now, we have more and more cables like Peace Cable and the G2A cable,” he said. Demand has surged, with clients now requiring 16 to 24 fibre pairs per cable, compared to just two pairs a decade ago.

Ma also discussed innovations in reliability, referencing HMN Tech’s open cable platform. “We allow our clients to purchase their own preferred transmission equipment,” he explained, promoting flexibility in network management. Additionally, HMN Tech is advancing high-fibre-count subsea solutions. “We deployed the first 16-fibre-pair system in 2021, and we’re now working on 24 and even 32-fibre-pair systems,” he revealed.

Coker emphasised the importance of resilience, especially after the Red Sea cable cuts of last year. “You can’t have too much resilience in fibre interconnectivity,” he said. While satellite technology has its place, the backbone of global internet traffic remains fibre-based subsea cables. He cited recent disruptions in East and West Africa, reinforcing the necessity for diversified connectivity.

Voscarides highlighted the role of data centres in mitigating outages. “As a data centre operator, we played a role in rerouting traffic when things went down,” he explained. However, he cautioned that while data centres provide temporary solutions, broader investments in network redundancy are required.

Power availability emerged as a key factor influencing digital expansion. Voscarides pointed out that countries like Ethiopia offer extremely cheap electricity at three cents per kilowatt-hour, but reliability remains an issue. “Delivery is not as reliable as you want it to be,” he admitted. He also noted the challenges in securing funding for infrastructure. “Funding, not that easy,” he quipped, underlining the difficulty of securing capital for power projects despite growing investor interest.

Ogbunude discussed the role of renewable energy in shaping Africa’s digital infrastructure. “A lot of data centres are moving towards solar and wind energy,” she said, adding that this trend enables operators to tap into ESG-linked financing. She noted that this shift is particularly relevant in countries with high energy costs, such as Pakistan.

However, Voscarides offered a pragmatic view of solar energy’s limitations. “I’m a huge fan of solar, love it, but we have to be realistic,” he said, arguing that large-scale data centres require continuous power, which solar alone cannot provide.

The panel concluded that Africa’s digital transformation is integral to Middle East connectivity. Enhanced infrastructure will lower costs, improve business opportunities, and strengthen global trade links. However, challenges remain, particularly in last-mile connectivity, power supply, and resilience planning.

Ogbunude emphasised the need for ongoing collaboration, stating, “If from an African and Middle East perspective, they’re able to increase connectivity amongst both parties, immense opportunities exist.”

Coker summed up the strategic importance of connectivity: “There’s an interplay between connectivity, data centre capacity, and energy. Get these right, and the economic upside is huge.”

Voscarides reinforced the need for infrastructure investment. “The data centres and cables will take care of the connectivity—what we need is to tie funding for power and smart ways of delivering it.”

Ma concluded with a technical perspective, stating, “With more fibre pairs, with longer distances, we must solve power feeding issues. That’s where we’re innovating.”

Ultimately, Africa’s role in Middle East connectivity is not just about geographical proximity but about fostering an integrated digital ecosystem. The panellists agreed that addressing infrastructure, power, and resilience challenges will be critical in ensuring long-term growth for both regions.