Telecom
IFC Invests in Convergence Partners’ Fund to Boost Digital Access in Africa
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To help strengthen broadband infrastructure and improve online access to digital services for individuals and businesses in more than 12 countries in sub-Saharan Africa, IFC announced that it invested in a new fund by Convergence Partners Africa, an investment management firm focused on the technology, media and telecom sectors in Africa.
The COVID-19 pandemic has accelerated the adoption of digital technologies and the demand for digital infrastructure which are helping connect businesses with customers and suppliers, creating new channels to access health and education services, and enabling entrepreneurs. However, it has also exposed the digital divide in Africa.
IFC’s equity investment of $25 million in Convergence Partners’ Digital Infrastructure Fund will promote improved digital connectivity and access to digital services by investing in independent operators and service providers in sub-Saharan Africa. The fund has a target size of $250 million. IFC invested in Convergence Partners’ previous fund, Convergence Partners Communication Infrastructure Fund.
Investments made through the Digital Infrastructure Fund will support critical digital infrastructure companies and projects including broadband networks, fibre cable systems, mobile towers, digital service provider platforms and data centers, adding new connectivity and data center capacity in many countries in Africa where such infrastructure is currently limited.
“We are very pleased to extend our relationship further with IFC, who were also investors in our last fund and co-investors with us in underlying portfolio companies. We share a joint ambition to invest in those businesses on the African continent that are contributing meaningfully towards addressing the digital inclusion gap that exists.
“Africa is ready for high throughput pervasive fibre networks, independent hyperscale data centers, edge, AI, 5G and IoT. Connectivity is at the foundation of 4IR. Our new Digital Infrastructure Fund is the platform for building Digital Africa for future generations,” said Andile Ngcaba, Chairman of Convergence Partners.
Internet access in Africa relies largely on mobile networks. Mobile broadband penetration stands at only about 34 percent and fixed broadband at less than five percent across most of sub-Saharan Africa, excluding South Africa.
Africa also experiences a large urban and rural connectivity divide, with 28 percent of urban households having access to the Internet compared to only six percent in rural areas, according to the International Telecommunications Union.
“Increased broadband connectivity supports economic growth, job creation, and quality of life. Together, we can help connect more homes and businesses in Africa by supporting funds such as the Convergence Partners Digital Infrastructure Fund to bridge the $100 billion digital infrastructure financing gap to reach universal connectivity by 2030,” said Makhtar Diop, IFC’s Managing Director.
Telecom
Starlink Becomes Nigeria’s Second-Largest ISP, Overtakes FiberOne
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Elon Musk’s Starlink has become the second-largest Internet Service Provider (ISP) in Nigeria, surpassing FiberOne in customer numbers while Spectranet remains the market leader.
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Elon Musk
This was revealed in a recent report by the Nigerian Communications Commission (NCC).
According to NCC’s Q3 2024 data, Spectranet maintained its top position with 105,441 active subscribers, despite losing over 8,000 users since December 2023.
Meanwhile, Starlink, which launched in Nigeria in January 2023, grew rapidly to 65,564 subscribers, adding 41,667 users in just nine months.
This pushed FiberOne to third place with 33,010 customers.
The report also showed that out of 241 licensed ISPs in Nigeria, only 124 had active users in Q3 2024, collectively serving 307,946 subscribers.
However, these numbers remain far below the dominance of mobile network operators such as MTN, Airtel, Globacom, and 9mobile, which together accounted for over 130 million internet users as of September 2024.
Starlink’s expansion has been driven by its satellite-based internet service, which provides coverage in remote areas where traditional ISPs struggle.
By the end of 2023, the company had already secured the third position with 23,897 users, marking a 113% growth from the previous quarter.
Its growth has also been supported by partnerships with Nigerian companies like TD Africa and Konga.
In 2023, Starlink briefly stopped accepting new orders in major cities, including Lagos, Abuja, and Port Harcourt, due to capacity issues.
Telecom
FG Commits $2Bn to Digital Infrastructure
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The Federal Government says it has committed $2 billion to enhance Nigeria’s digital infrastructure, aiming to boost the nation’s economy and safeguard the digital identities and rights of its citizens.
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Bosun Tijani, Minister of Communications, Innovations and Digital Economy
Bosun Tijani, Minister of Communications, Innovations and Digital Economy disclosed in Abuja on Tuesday while briefing newsmen on the forthcoming International Telecommunication Union, (ITU) Summit holding in Abuja from Wednesday to Thursday this week.
The ITU International Submarine Cable Resilience Summit will feature over 250 participants from 194 ITU member countries, with key representatives from the private sector and academia expected to attend.
Tijani who addressed journalists alongside Tomas Lamanauskas, the Deputy Secretary General of ITU,said the present administration was not making two billion dollars investments in digital infrastructures for the fun of it.
He said the present administration is committed to digital connectivity for the people to make lives more meaningful and impactful, adding that the investments would ensure that Nigerians enjoy the best quality of digital services and protection in the nearest future.
The ITU International Submarine Cable Resilience Summit aims to foster global collaboration, secure innovative solutions, and engage leaders from government, industry and international organisations to strengthen the global digital infrastructures.
“This investment is part of a larger vision to provide every Nigerian with access to high-quality digital services, while safeguarding their digital identities,” Tijani said.
The ITU International Submarine Cable Resilience Summit, co-hosted by Nigeria and Portugal, will explore innovative strategies to strengthen the security and resilience of submarine cables—vital infrastructure for global digital connectivity.
The summit is bringing together government leaders, industry experts, and international organizations to discuss ways to safeguard submarine cable networks, which are increasingly vulnerable to disruptions.
Tijani emphasized that the discussions at the summit will focus on finalizing a global declaration on submarine cable resilience, calling for heightened action from both governments and private sectors to protect digital infrastructure worldwide.
In his words, “Nigeria is not just solving local issues; we are taking a global leadership role in securing submarine cables, which are essential for digital connectivity”.
The summit will address the growing concern of disruptions in submarine cable networks, with an average of 150 to 200 cables being damaged or cut annually, severely impacting global digital connectivity.
To tackle these challenges, the summit will include key international organizations such as the International Maritime Organization (IMO) and the Food and Agriculture Organization (FAO), promoting coordination across industries such as telecom, shipping, and fishing, which impact submarine cable integrity.
Tijani also highlighted Nigeria’s leadership in the digital space, stating that while the country already boasts a robust submarine cable network, with around eight or nine cables landing in Nigeria, the key challenge now is expanding these networks inland and ensuring reliable, high-speed internet access for all Nigerians.
“We are committed to connecting every Nigerian, ensuring that digital infrastructure benefits all citizens,” he added. Tomas Lamanauskas, Deputy Secretary-General of ITU, praised Nigeria’s forward-thinking investments in digital infrastructure.
He highlighted that Africa is experiencing rapid growth in digital traffic, and Nigeria’s investments will play a pivotal role in ensuring the continent remains competitive on the global digital stage.
According to him, “This region is the fastest-growing for international digital connectivity, and Nigeria’s leadership is critical to ensuring Africa’s success in the global digital economy.
The summit is expected to provide a platform for robust discussions on enhancing submarine cable security, a critical pillar for the global digital economy, with over 50 countries participating in this essential dialogue.
Telecom
Network International Partners with MTN Group to Enhance Digital Payment Solutions Across Africa
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Network International, a leading enabler of digital commerce across the Middle East and Africa (MEA), has been appointed as a Payment Processor – Issuing partner for MTN Group Fintech, Africa’s leading mobile financial services provider.
This partnership marks a significant extension of Network’s portfolio of issuer processing collaborations throughout the African continent.
With a footprint spanning over 50 countries and serving over 250 financial institutions, Network International brings its expertise to this partnership which will enhance MTN Fintech’s cutting-edge mobile services and provide even greater value to stakeholders and customers across Africa.
The partnership will focus on rolling out card issuance products across key MTN Fintech markets, starting with Rwanda which is already operational. Soon Uganda, Ivory Coast, and Nigeria will also be covered under this collaboration.
Network International will provide a comprehensive range of services, including transaction processing, card management and online fraud prevention. MTN Fintech users will benefit from a seamless experience accessing both traditional mobile services and innovative digital payment solutions.
Dr. Reda Helal, Group Managing Director – Processing, Africa and Co-Head Group Processing at Network International commented: “Our collaboration with MTN Group Fintech marks a major milestone for our outsourced payments services in Africa.
“It demonstrates our ability to successfully serve Mobile Network Operators (MNOs) via our fully-fledged processing solutions and our continued dedication and commitment to the African region.
“We are excited to support MTN Group Fintech’s growth strategy, and its business development plans across the continent.”
Cedric N’guessan, Executive for Payment and E-commerce at MTN Group Fintech added, “This collaboration with Network International is pivotal in enhancing financial inclusion across Africa and beyond.
“It enables our customers to actively engage in the global economy, aligning perfectly with our strategic goals alongside Mastercard to broaden access to digital financial services across the continent.”
MTN Group provides voice, data, fintech, enterprise wholesale and API services to more than 288 million customers in 14 African markets.
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