Africa told to invest in own satellite infrastructure as digital race gathers pace

However, the report warns that unless African countries move quickly to strengthen regulation, invest in local infrastructure and coordinate policies, the continent risks becoming dependent on foreign-controlled digital systems.

The report, titled Telecoms Offshored – The Strategic Challenge of Satellite Internet for African Economies, argues that satellite connectivity should become part of Africa’s long-term digital transformation strategy rather than simply another imported service.

For East African countries such as Tanzania, Kenya, Rwanda and Uganda, where governments are pursuing ambitious digital economy agendas while millions remain offline, the debate is becoming increasingly important.

The report says satellite technology could help bridge connectivity gaps in rural communities, support emergency communications during disasters and improve internet access for schools, hospitals and businesses located far from fibre networks and mobile towers.

However, it argues that Africa’s biggest challenge is no longer simply network coverage.

According to the findings, nearly 87 percent of Africans already live within mobile broadband coverage, yet only 27 percent actively use mobile internet services, leaving a usage gap of around 60 percentage points.

The report attributes the gap to high smartphone prices, costly internet bundles and limited digital skills, factors that continue to leave millions disconnected despite expanding network infrastructure.

Askya Investment Partners founder and managing partner, Mr Babacar Seck, said Africa is at a critical turning point in shaping its digital future.

“Africa is at a genuine inflection point in its digital journey. Satellite connectivity can help expand coverage, strengthen resilience and economic dynamism if it is integrated through partnerships that complement terrestrial networks,” he said during the Kigali briefing.

The report argues that satellite internet should not replace existing telecom operators, fibre optic networks or mobile infrastructure, but instead complement them through what it describes as a hybrid connectivity model.

Under such a model, satellite systems would work alongside terrestrial telecom companies to expand internet access in underserved areas while preserving local investment and strengthening Africa’s digital ecosystem.

“One of the central findings of the report is that a hybrid model is likely to be the best approach going forward, combining stronger onshore telecoms with fibre and mobile infrastructure,” said report co-author, Mr Abdullahi Tsanni.

The report notes that Africa’s telecom sector has already attracted around $220 billion in investment and contributes nearly 7.7 percent of the continent’s GDP.

The industry also supports about eight million formal jobs and generates roughly $30 billion annually in taxes.

However, the report warns that some offshore satellite operators currently operate under lighter licensing, taxation and infrastructure obligations than traditional telecom companies, despite competing in the same market.

It says this could weaken local telecom firms that continue investing heavily in fibre networks, towers and rural coverage expansion across African countries.

Mr Seck said the discussion should not be viewed as opposition to satellite technology, but rather as a broader debate on how Africa can build a stronger and more self-reliant digital economy.

“Satellite internet is the future. There is no world in which Africa should regulate out satellite internet. We need to leverage it where it is most effective,” he said.

The report also argues that Africa must move beyond simply consuming digital services developed elsewhere and start investing in African-owned digital infrastructure.

It recommends stronger investment in fibre optic networks, data centres, internet exchange points and eventually African-controlled satellite systems capable of supporting the continent’s long-term digital ambitions.

The authors argue that digital sovereignty increasingly depends on who controls connectivity infrastructure, data systems and communication networks.

The report further recommends harmonising licensing systems, spectrum management rules and consumer protection standards across African regions to strengthen the continent’s bargaining power as satellite internet expands.

Africa CEO Forum chief executive, Mr Amir Ben Yahmed, said innovation alone would not guarantee Africa a stronger digital future unless governments establish clear and enforceable rules.

“Our message is simple: the technology is welcome, but it must compete under clear, fair and predictable rules,” he said.

The report also calls on African governments to strengthen regulators so they can better supervise rapidly evolving digital technologies and negotiate more effectively with global technology firms entering African markets.

It says stronger regional coordination will be critical in ensuring Africa develops connectivity systems that expand access while protecting local investment, jobs and public revenues.

The report concludes that while satellite internet could unlock new opportunities in education, e-commerce, agriculture, banking and healthcare, the real challenge for Africa is whether the continent will actively shape the future of digital connectivity or remain dependent on systems controlled elsewhere.