Despite growth in the number of people on the internet in countries like Nigeria, the cost of accessing mobile broadband in many parts of Africa still remains prohibitive.
A report released by Alliance for Affordable Internet (A4AI) studied the cost of mobile broadband in 99 countries and found that 1GB costs 6.31 per cent of the monthly income on average, well above the ‘1 for 2’ affordability threshold, where 1GB of mobile data is priced at no more than 2 per cent of the average income.
The ‘1 for 2’ threshold for affordable internet was adopted as the new affordability target by the United Nations in January, 2018. Nigeria, Ghana and the Economic Community of West African States (ECOWAS) were among the early endorsers of the threshold.
According to A4AI, only 30 of the countries surveyed have affordable mobile broadband, suggesting that at least 1.3 billion people live in a country where an entry level plan of 1GB of mobile data is not affordable. Billions of others live in countries that meet the ‘1 for 2’ threshold but because they have a lower than average income, they nonetheless struggle to pay for basic mobile data packages.
The price of 1GB of mobile data for millions of people living in sub-Saharan Africa is well beyond what is considered affordable and in sixteen countries across Africa, 1GB costs more than 10 per cent of the monthly average income.
“Worryingly, we’ve seen a slowdown in mobile broadband affordability for people in low-income countries (as defined by the World Bank), over the last four years,” authors of the report noted. “In fact, this year’s projected broadband cost (relative to 2017 income data) has actually increased by nearly 16 per cent in low-income countries since last year’s snapshot.”
The implication is very significant. Many countries are investing heavily in the new digital economy which is widely seen as the future. The World Bank projects that a major source of new jobs will be the digital economy and is expected to account for 25 per cent of the world’s gross domestic product (GDP) in less than a decade, eclipsing the momentum of the traditional economy.
Kristilina Georgieva, CEO of World Bank and interim president of the World Bank Group describes a flourishing digital economy as one in which people have digital skills, a digital ID and access to financial services and ecommerce.
High cost of mobile broadband means that Africa accounts for 20 of the 25 least connected countries in the world. Only 22 per cent of homes have access to the internet, while 24 per cent of people use it. It also means that too few Africans have digital IDs or mobile wallets – locking them out of access to critical services and ecommerce.
Earlier this week the Nigerian Communications Commission (NCC) disclosed that broadband penetration has reached 33 per cent. Although this looks like progress, it is still far behind countries like Japan, Finland, Estonia, and the United States with subscriptions per 100 inhabitants at 168%, 155%, 146% and 137%.
“Without action from policymakers, this two-speed trend for internet affordability will grow the digital divide and deprive low-income countries of valuable opportunities for revenue and development. As the rest of the world continues to develop and embrace new internet technologies, users in low-income countries that remain unconnected will face growing digital deprivation. Countries that fail to address affordability today will see unaffordable mobile broadband costs create deeper social and economic divides in the future,” the A4AI report authors noted.
