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.
OpenAI, the developer of ChatGPT, is reportedly in discussions to offer the U.S. government a five per cent equity stake in the company as part of efforts to address growing political and regulatory scrutiny surrounding artificial intelligence (AI).
According to a report by the Financial Times, the proposal is still at an early stage and would see other leading American AI companies consider similar arrangements to allow the public to benefit from the industry’s rapid growth.
OpenAI Chief Executive Officer, Sam Altman, was quoted as saying that public ownership would enable citizens to share in the economic benefits generated by AI while helping to build public trust in the technology.
Based on OpenAI’s March funding round, which valued the company at about 852 billion dollars, a five per cent stake would be worth approximately 42.6 billion dollars.
The report said the proposal comes amid increasing concerns over AI’s impact on jobs, national security and the concentration of wealth within a handful of technology companies.
Last month, U.S. President Donald Trump said his administration was exploring ways to ensure Americans benefit directly from the country’s leadership in artificial intelligence, including the possibility of government equity stakes in AI companies.
Under the reported proposal, OpenAI executives suggested that major AI firms could allocate five per cent of their equity to a public investment vehicle modelled after the Alaska Permanent Fund, which invests state oil revenues and distributes returns for public benefit.
The discussions are also taking place as OpenAI and rival AI company Anthropic prepare for potential stock market listings that would allow public investment in their businesses.
According to the report, implementation of such an arrangement could require approval by the U.S. Congress, while it remains unclear whether other AI companies would support the proposal.
OpenAI had previously advocated the creation of a “public wealth fund” that would give every citizen a stake in AI-driven economic growth, regardless of whether they participate in financial markets.
The proposal comes as the Trump administration intensifies oversight of advanced AI technologies while promoting U.S. leadership in the rapidly expanding sector.
Kashifu Inuwa, director general of the National Information Technology Development Agency (NITDA), has said the next phase of growth for Nigeria’s banking sector will be driven less by capital accumulation and more by the ability of financial institutions to build digital trust through artificial intelligence (AI), regulatory technology (RegTech) and cyber resilience.
From left: Wole Famurewa, Ayotunde Coker, Managing Director, Rack Centre; the Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa; Prof. Olayinka David West of Lagos Business School; and Femi Osinubi, Africa Advisory Leader, PwC, during the panel session, “The Efficiency Frontier – AI, RegTech and Cyber Resilience,” at the Future of Banking Nigeria Summit organised by CNBC Africa in Lagos.
Speaking during a panel session titled “The Efficiency Frontier – AI, RegTech and Cyber Resilience” at the Future of Banking Nigeria Summit organised by CNBC Africa in Lagos, Inuwa argued that while Nigeria’s banking industry has successfully weathered major reforms over the past two decades, the emerging threats confronting the sector require a different approach.
He noted that the industry has repeatedly demonstrated resilience through landmark milestones such as the 2005 banking consolidation, the 2009 banking reforms and the ongoing recapitalisation exercise. According to him, the priority has now shifted from simply raising capital to ensuring that such capital is protected and sustained in an increasingly digital economy.
“Today’s question is no longer whether we can raise capital, but whether we can protect, preserve and grow that capital in the digital era. Trust has become the foundation of modern banking, and that trust must be built on resilient digital infrastructure and effective regulation,” he said.
Inuwa observed that digital channels have become the primary point of interaction between banks and customers, making technology resilience, cybersecurity and uninterrupted service delivery essential to maintaining public confidence in the financial system.
He described artificial intelligence as a strategic tool capable of transforming banking operations by improving productivity, strengthening decision-making, boosting revenue and delivering personalised financial services that reflect the expectations of digitally connected customers.
The DG also highlighted the growing importance of regulatory technology, saying its adoption can simplify compliance, lower operational costs, improve transparency and strengthen governance across financial institutions.
According to him, effective regulation must evolve alongside innovation. He explained that NITDA combines formal regulatory instruments with collaborative, innovation-friendly approaches that allow emerging technologies to develop while regulators establish appropriate standards and safeguards.
“Technology evolves much faster than traditional regulation. Regulators must work closely with innovators to create enabling frameworks that encourage innovation while protecting consumers and maintaining market confidence,” he said.
Using Nigeria’s thriving fintech ecosystem as an example, Inuwa said technology has fundamentally changed the delivery of financial services by enabling customers to open accounts, access banking products and carry out transactions remotely without visiting physical branches.
He further called for closer collaboration among regulators to improve access to finance for Small and Medium-sized Enterprises (SMEs). He explained that AI-powered credit assessment and digital financial management tools can help financial institutions better understand business performance, reduce lending risks and expand credit to underserved enterprises.
On responsible AI adoption, Inuwa disclosed that NITDA’s National Artificial Intelligence Strategy provides a framework for deploying AI across critical sectors in partnership with sector regulators, including the Central Bank of Nigeria (CBN) for financial services.
He added that the Agency is also developing National Standards for Sovereign Cloud infrastructure and data classification to strengthen Nigeria’s digital sovereignty and ensure that sensitive national and financial data remain adequately protected.
Inuwa concluded that deeper collaboration among regulators, technology innovators and financial institutions will be critical to building a secure, resilient and globally competitive financial ecosystem that supports sustainable economic growth.
Indian government has asked Meta Platforms to suspend the rollout of WhatsApp’s proposed username feature in the country over fears that it could fuel online fraud, impersonation and phishing attacks.
The directive, issued by the Ministry of Electronics and Information Technology (MeitY), comes days after WhatsApp announced plans to introduce usernames globally, allowing users to connect without sharing their phone numbers in a move aimed at enhancing privacy.
India, WhatsApp’s largest market with more than 500 million users, expressed concern that the feature could make it easier for cybercriminals to impersonate individuals and organisations, particularly among users with limited digital literacy.
According to media reports, the ministry, in a letter to Meta, warned that the feature could increase incidents of online fraud, phishing, digital arrest scams and identity theft.
A senior government official was quoted as saying that malicious actors could claim usernames resembling those of legitimate individuals and use them to deceive unsuspecting users.
The ministry has reportedly asked Meta not to launch the feature in India until consultations with the government are concluded and the company provides satisfactory explanations on the safeguards built into the system. Authorities have also asked WhatsApp to respond to the concerns within three days.
Responding to the concerns, Meta said the username feature had not yet gone live in India and stressed that multiple security measures had been incorporated to prevent abuse.
The company said usernames for high-profile public figures and verified organisations had already been reserved to prevent impersonation.
Meta added that users would still require a phone number to register for WhatsApp and that the platform had introduced several layers of protection, including limits on messaging unknown users, restrictions on repeated attempts to guess usernames, and systems to detect and remove impersonation and scam-related activities.
The latest development comes as India intensifies efforts to combat cybercrime amid a sharp rise in digital fraud cases across the country.
Government data indicate that financial losses from cyber fraud have risen significantly in recent years, prompting closer scrutiny of digital platforms and their security features.
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