Telecom
Extending Telecoms Connectivity to rural Africa
In spite of tremendous growth in telecommunications service delivery in Africa, greater percentage of rural populace in the region is yet to enjoy telecom access, due mostly because rural areas are not commercially viable.
Governments in Africa have attempted to lure operators in providing service to rural dwellers through incentive such as tax waivers and provision of telecom infrastructure to no avail.
Against this backdrop that a report dealing with the broader issues of rural connectivity in Africa launched last week by the Commonwealth Telecommunications Organisation (CTO). The report reveals that a number of novel and multi-stakeholder partnerships, unique business models and innovative technologies are, for the first time, paving the way to connect many of Africa’s rural communities, on a sustainable, profitable basis.
The report provides evidence that contrary to some assumptions that the private sector can lead the effort to connect Africa’s rural populations, the experiences of industrialized countries like Canada, the Unites States and Australia is that governments have had to lead the effort, but in close collaboration with the private sector and local communities. The report calls for Commonwealth African governments to implement their national ICT policies as part of a wider national development strategy and to make faster in-roads into rural ICT rollout through public private peoples partnerships (PPPPs), with local communities playing a more pivotal role.
The report finds that the key to successful partnerships between the public and private sectors and other ICT stakeholders is to encourage local ownership, thereby nurturing the community’s enthusiasm for effective connectivity and ensuring the sustainability of ICT investments.
The CTO study found that whereas Commonwealth countries such as Malaysia and India have made significant in-roads in rural connectivity, Commonwealth African countries like Sierra Leone and Zambia are lagging behind in rural access, leading to poor and overall slow economic growth. The report finds that although recent years have seen dramatic growth in penetration rates in some African countries, especially through mobile networks, the continent’s aggregate penetration rate is still less than 20 percent.
"For Internet access and use, the figures are well below 5 percent for most of Africa. Over 60 percent of Africa’s population lives in unconnected rural areas and represent an untapped market, holding enormous potential for growth for service providers, equipment manufacturers and the entire telecommunications industry", the report claims.
By way of conclusion the report calls for ICT policy provisions that focus on universal and rural access, in order to affirm the commitment of governments to providing basic ICT services to poor, isolated and marginalized communities . There is also the need for continued incremental and a more methodical process of liberalization and privatization of the telecommunications sector in many African countries, and a variety of regulatory safeguards need to be put in place to foster competition and promote a conducive environment for rural connectivity.
Commenting on the initiative, Dr. Ekwow Spio-Garbrah chief executive officer of CTO said that the evidence they have accumulated in the course of the 9-month study demonstrates that most of Africa’s rural populations could well be connected over the next decade. "This is partly because an unusual confluence of sounder policies, relevant legislation, improving regulatory practices, the establishment of universal access and service agencies and the revenues they have acquired, new technologies and business models, and the availability of funding from a plethora of sources, all make it now possible for most of Africa to be connected wirelessly within the next ten years," he said. According to Spio-Garbrah, who is a former Minister of Communications in Ghana, ‘the pilot project models we have found to work best are where a combination of public institutions and private ICT operators or equipment vendors have found it possible to involve local groups or communities in structuring, ownership or management of the ICT assets, to ensure their more effective use and sustainable operation. We hope that more companies will join the CTO as we move to the second phase of this important initiative to replicate and scale-up a number of selected model projects, so that the benefits of ICTs can be enjoyed by millions more in Africa’. "Connecting the majority of Africans to the Information Super Highway is necessary if African countries are to benefit from the global knowledge revolution," he said.
The project was undertaken under the auspices of the Commonwealth Connects programme, which involves collaboration with a number of Commonwealth agencies, including the Commonwealth Secretariat. It is supported by the International Telecommunication Union, as part of efforts to help unearth market opportunities, enhance technological advancements, as well as accelerate social development and economic growth by connecting rural communities in the 18 Commonwealth African countries.
The first phase of the project was aimed at discovering how telecommunications regulation, policy, legislation, and operational, technological and financial models affect the potential for cost-effective rural connectivity in the 18 African Commonwealth countries. The research compiled similar information on initiatives and best practices of five selected non-African countries such as USA, Canada, Australia, Malaysia and India, countries that have enjoyed greater success in connecting their rural populations. Subsequently the initiative is to devise effective dissemination channels for the report and identify 10 pilot projects for adaptation and replication to form the basis for the second phase of the project.
Can it happen in Nigeria?
Just as the telecom sector in India is fully liberalized and fastest growing so also is Nigeria’s. The question now is why is Nigeria moving at a slow pace? Currently, all the successes recorded in the sector are essentially an urban phenomenon. The four digital mobile operators have concentrated their activities in high density areas. Locations without access are either remote or are relatively poor communities. This has therefore affected some regions more than others.
A Nigerian Communications Commission NCC/World Bank study has looked at the market potential for telecoms services in the country. The study looked at a range of variable including geo-demographic, socio-economic and infrastructure data. It concludes that the entire country is reachable and that a significant market scope exists. The study conducted ranking among states. The most challenging northern states are typically low socio-economically.
They have low revenue potential, poorest infrastructure and highest cost for telecoms development. However, some challenging southern states exist, but are less difficult to serve. These states usually are small in size: have potential to cover cost, and have good chances of returning a profit.
So far, digital mobile licensees have been slow in expanding into rural areas, despite the fact that the NCC requires them to invest part of their income in setting up services in the rural communities. Market assessments suggest that about 22 states will need some form of incentive to attractive mobile operators. The universal Access fund (UAF) operated by the stakeholders (operators, government and donors) is expected to be a vehicle to deliver these incentives.
Over two thirds of Nigeria’s population resides in rural area. Increasingly, poverty in the country is wearing a rural face. From 28.3 percent in 1980 poverty among the rural population grew to 51.4 percent in 1985, has since risen to 69.8 percent.
Little wonder that global consultancies and analysis believe that if only the operators could convert the challenges in rural Nigeria to opportunities, Nigeria would be an exciting story for other countries of the world to emulate.
SHELT System Integration (SHELT SI) has announced its achievement of Cisco Select Partner certification in Nigeria, marking a significant milestone in its commitment to delivering top-tier networking and security solutions to businesses across the region.
This certification underscores SHELT SI’s dedication to excellence in providing innovative networking and security solutions tailored to meet the evolving needs of the market.
The Cisco Select Partner certification is a validation of SHELT SI’s technical expertise and commitment to customer satisfaction, as well as its ability to deliver cutting-edge networking and security solutions that drive business success. With this recognition, SHELT SI is affirming its ability to further enhance its offerings and support its clients in navigating the complexities of the digital landscape.
Cisco Nigeria General Manager Sebastine Nzeadibe comments: “We are delighted to welcome SHELT SI to the ranks of Cisco Select Partners in Nigeria.
“Their demonstrated commitment to excellence and customer satisfaction aligns perfectly with our values, and we look forward to collaborating closely together to empower businesses with transformative networking and security solutions.”
Youssef Abillama, CEO of SHELT, comments: “Achieving this certification strengthens our relationship with CISCO and is a testament to our team’s dedication and expertise in delivering best-in-class solutions.
“This milestone reinforces our commitment to empowering businesses in Nigeria with innovative technology solutions that will enable them to thrive in the digital age through cutting-edge technology solutions.”
SHELT’s Country General Manager, Walid Bou Abssi, added, “The Cisco Select certification empowers us to provide an increased level of support and further enhances our ability to address the requirements of our clients’ evolving needs in Nigeria.
“It is an acknowledgement of the ability of our pre-sales, sales, and client support teams to design, quote, deploy, and support Cisco solutions.”
Nigeria may reinstate a previously suspended telecom tax and other fiscal measures as it seeks to secure a new $750 million loan from the World Bank, as per Nairametrics report.
This is according to the Stakeholder Engagement Plan for Nigeria – Accelerating Resource Mobilisation Reforms (ARMOR) P-For-R (P177308) program dated March 2024, between Nigeria and the World Bank.
A copy of the plan’s document was obtained and seen by Nairametrics suggest the government reintroduces the excises on telecom services, EMT levy on electronic money transfers through the Nigerian Banking System among other taxes.
President Bola Tinubu in July 2023 ordered the suspension of the 5% excise duty on telecommunications and the Import Tax Adjustment levy on certain vehicles.
However, it appears that this suspension may be lifted to meet the program targets for a new, yet-to-be-approved World Bank loan.
Nairametrics has confirmed that negotiations are ongoing between the Federal Government and the World Bank.
The program’s development objective is to strengthen the government’s financial position by enhancing its capacity to manage and mobilize domestic resources effectively, which includes improving tax and customs compliance and protecting oil revenues.
Affected stakeholders and sectors
The planned tax reforms under the ARMOR program are expected to have significant implications across various economic sectors.
According to the plan, affected stakeholders will include manufacturers of goods such as alcoholic beverages, tobacco products, and sugar-sweetened beverages (SSBs), telecom and banking service providers, as well as the general tax-paying public.
Importers and international traders will also feel the impact of these new fiscal policies.
Key industry groups such as the Association of Licensed Telecom Operators of Nigeria (ALTON) are engaged regarding the excise duties on telecom services.
The banking sector, represented by the Committee of Bankers, are engaged regarding the introduction of an Electronic Money Transfer (EMT) levy on transactions processed through Nigerian banks.
Additionally, the Manufacturers Association of Nigeria (MAN) will play a crucial role, particularly for those involved in producing targeted products such as tobacco and alcoholic beverages.
The plan document read:
“Domestic Revenue Mobilisation drive in the government ARMOR program seeks to increase revenue on some targeted industries and sectors of the economy. Specific groups and agencies within affected sectors include
“1. Association of Licensed Telecom Operators of Nigeria: The introduction of excises on telecom services requires that all telcos are mobilised to fully participate in the collection of such revenue.
“2. Committee of Bankers: Introduction of EMT levy on electronic money transfers through the Nigerian Banking System would need the buy-in all banking institutions
“3. Manufacturer’s Association of Nigeria: Manufacturers of tobacco products, sugar sweetened beverages(SSBs) and alcoholic beverages who would be required to collect excises on their products are critical stakeholders for the introduction of the new excise regime. They are currently organised into various sectoral groups under the Manufacturer’s Association of Nigeria (MAN). Producers of alcoholic beverages organised under the Distillers and Blenders Association of Nigeria also need to key into the reforms
“4. Importers: Strategic partners involved in importation of different items into the country will be mobilised to participate in the ARMOR program. A key stakeholder group is the Association of Nigeria Customs Agents (ANCLA).
“5. Vehicle Importers and Manufacturers: Stakeholders in the automobile trade industry must be engaged on reforms involving the introduction of green taxes on high GHG emission vehicles. Local manufacturing and assembly of vehicles is growing through a phase of growth in Nigeria. The demand for vehicles is mostly met through importation by vehicle importers under the aegis of Association of Motor Dealers of Nigeria (AMDON).”
The document also emphasized the importance of engaging vulnerable groups to ensure they are not disproportionately affected by these changes.
It also said:
“Services that will be subjected to the newly introduced excises are regulated by key public sector agencies. The introduction of the new revenue measures will require the application of existing regulatory mechanisms available within these institutions. The concerned institutions include
“1. Nigerian Communication Commission
“2. Central Bank of Nigeria.
“There are also agencies with the mandate for making policies on some of the issues covered in the ARMOR program with respect to policy framework on matters of public interest in Health and Environmental Protection. The government institutions relevant to ARMOR in this regard are.
“1. Federal Ministry of Environment
“2. National Environmental Standards Regulatory and Enforcement Agency (NESREA)
“3. Federal Ministry of Health”
The Office of the African Union Chairperson’s Youth Envoy and Google today announced the launch of the #DiscoverMyAfrica Shorts Challenge, a month-long initiative to celebrate the rich diversity, heritage, and vibrant spirit of the African continent. Throughout May, YouTube creators across Africa are invited to share short videos capturing their unique perspectives, using the hashtag #DiscoverMyAfrica.
“#DiscoverMyAfrica empowers African youth to share their stories and rich cultural heritage globally,” said Chido Mpemba, African Union Chairperson’s Youth Envoy. “Partnering with Google fosters creative expression and dialogue on content responsibility, digital preservation, and AI’s impact on Africa’s creative industries. This aligns with our vision for a digitally-enabled Africa harnessing cultural wealth for economic growth and social progress.”
The YouTube Shorts Challenge encourages creators to showcase various facets of African life, from music and art to food, fashion, and local landmarks. To further celebrate Africa’s vibrant music scene, YouTube is turning up the energy with YouTube Music Nights in Nigeria and South Africa, showcasing the infectious rhythms of Afrobeats and Amapiano. Two dedicated playlists, “Africa’s Next Wave” and “Africa Superstars,” will highlight both emerging talent and iconic voices that have made the continent a global music powerhouse.
Nollywood superstar and style icon Osas Ighodaro will immerse viewers in the luxurious side of Lagos with her new show “Spa with Osas.” Enioluwa and The Geng will unravel the drama and secrets of high school elites in their highly anticipated series “All of Us.” And comedy superstar Broda Shaggi is guaranteed to bring the laughs with his hilarious new project, “Shaggi’s Palava.” These exciting new shows will premiere exclusively on YouTube.
Aspiring filmmakers and content creators can also take advantage of specialized workshops designed to hone their skills and expand their reach. A dedicated Nollywood workshop in Nigeria, and broader #DiscoverMyAfrica workshops for content creators will offer valuable insights and resources to creators at all levels.
“We are committed to supporting the diverse voices and talents that make up Africa’s creative landscape,” said Addy Awofisayo, Head of Music for Sub-Saharan Africa at YouTube.
“These initiatives provide valuable resources and platforms for African filmmakers, musicians, and content creators to share their stories and connect with global audiences.”
To learn more about #DiscoverMyAfrica and how to get involved, visit www.blog.google/africa or follow #DiscoverMyAfrica on social media.
Global Mobile Banking Malware Grows 32% in 2023
AMMBAN Decries CBN Directive on CAC Registration of PoS Operators
What we can learn from Africa’s small business success stories
Payment Link Integration as Growth Driver for E-commerce Businesses
SHELT SI Achieves Cisco Select Partner Certification
CBN Sacks another 50 Staff, 117 Disengaged in 20 Days
AfDB, AGF Partner on Female Entrepreneurs’ Access to Finance
IMF says Rising Cyber Threats Pose Serious Concerns for Financial Stability
Sun International Finalizes $14.4M Exit from Nigeria, Sells Interests to RFC
Financial Firms Lost $2.5Bn To Cyberattacks in 4 Years – IMF
Telecom2 days agoRewane, Financial Expert Backs Telcos’ Move to Hike Tariff
News2 days agoDigital Transformation Can Unlock Nigeria’s Prosperity -NIGCOMSAT Boss
E-Business2 days agoKonga Launches Free Same Day Deliveries on Starlink, Apple & Samsung Nationwide
E-Business2 days agoCybervergent’s Q1 2024 Report Reveals Rising Threat of Remcos RAT Malware in Financial Sector
- Uncategorized2 days ago
Uche Ikejimba Secures Sixth Consecutive AMVCA Nomination With Best Unscripted M-Net Original Nod
E-Business2 days agoISDL Achieves IMS Certification
Telecom2 days agoAfrica Data Centres Unveils ADC Channel Programme
E-Financial2 days agoCourt Jails Nwachukwu, Ex FCMB Manager 121 Years for N112m Fraud