E-Business
ISOC Says Internet Economy Presents a Major Opportunity for Africa
Many African countries have made significant progress toward creating an Internet sector, with broad sector reforms and focus on increasing broadband availability. However, there is still much work to be done to strengthen the Internet sector and to create an Internet economy in Africa.
This is according to a report by Internet Society titled “Promoting the African Internet Economy” which looks at Internet adoption and usage by companies and governments throughout Africa.
The study says Internet access infrastructure is no longer the roadblock to Internet adoption that it once was. While it is not available to everyone, and not affordable to all people, in many countries mobile broadband is now available to a far higher proportion of the population than are using it, it adds.
A focus on building the Internet sector is critical for development, but will have an ultimately limited impact on the size of the economy, says Internet Society.
The study says the Internet’s contribution to gross domestic product (GDP) in Africa is low relative to other developed and emerging economies. Internet-based companies currently represent a single digit percentage of the economy of most African countries, it adds.
In developed countries, the Internet contributes up to 3.7% of GDP on average, while in African countries it’s just 1.1%, says the report. In Organisation for Economic Co-operation and Development countries the Internet sector makes up 3% to 5% of the workforce countries, but in developing countries only 1%.
Policy must focus on deepening the Internet sector, to ensure all users and organisations can go online, with good quality access that is affordable and supported by online skills training, says the study.
Two areas of focus should be: online platforms that can support further online growth, ranging from mobile money services to online employment platforms and supporting entrepreneurial efforts to allow innovative new companies to emerge, says Internet Society. These platforms themselves can grow into entire ecosystems that propel broader economic growth, it adds.
“The result will be an Internet economy that offers business-to-consumer services online with new opportunities for all citizens, business-to-business services to make the economy more efficient, and e-government services for all that are inclusive and reach all citizens.” This will enable growth and opportunities within the country, while also allowing all in the country to fully interact with the global digital economy, buying and selling goods, and providing services around the world, says the study.
If the Internet begins to match or exceed the levels seen in other countries, the impact on the continent’s economic and social development could be immense, says the study. As it stands today, there are already signs of growth of the Internet economy in some African nations – but there is great disparity across and within countries on the continent, it added.
However, a thriving Internet economy in Africa could be put at risk by the increasing number of Internet shutdowns in the region, says Internet Society.
Africa needs a secure and reliable Internet infrastructure that users trust to bring large and small businesses online, along with governments and other social services,” says Dawit Bekele, Africa region bureau director for Internet Society.
“In addition to the economic costs, Internet shutdowns also affect trust. If people don’t know whether they will have connectivity, they can no longer rely on that connectivity to build Internet-based businesses. This will affect entrepreneurs in greatest need of digital-led innovation for their own future, and the future of the Internet economy in Africa.”
Meta, a multinational technology company, has informed advertisers that it will begin applying new location-based fees to certain advertisements delivered in six selected jurisdictions starting July 1, 2026, as the company moves to offset costs linked to digital services taxes and other regulatory charges.
In an email sent to advertisers, the company explained that the new charges will apply to ad impressions delivered to audiences in specific countries, regardless of where the advertiser’s business is based.
“Meta will soon apply new location fees to ads delivered in specific jurisdictions to cover digital service taxes (DST) and other location-based fees imposed on Meta in those jurisdictions,” the company said in the mail.
According to the notice, the fees will be applied to ads delivered in Austria (5%), France (3%), Italy (3%), Spain (3%), Türkiye (5%), and the United Kingdom (2%).
The company added that these rates and jurisdictions could change over time.
Meta described location fees as additional charges tied to where ads are delivered rather than where the advertiser operates.
“Location fees are additional charges that may apply to ads delivered in selected jurisdictions to cover part of the costs associated with doing business in those jurisdictions,” the company said.
The company noted that the charges will be calculated after ads are delivered and will not be deducted from campaign budgets.
Meta gave an example in the email: if an advertiser spends $100 on ads delivered in Italy, where the location fee is 3%, the final cost would be $103, excluding any applicable value-added tax.
Explaining the reason for the change, the company pointed to regulatory developments affecting technology platforms.
“The cost of delivering ads in specific jurisdictions is changing due to the evolving regulatory landscape, including digital services tax legislation. Until now, Meta has covered these additional costs,” the company said.
The company added that the move aligns with broader industry practices, noting that other digital platforms may introduce similar charges linked to digital service taxes.
Meta said the location fees will apply to all ad formats, including image and video ads, as well as campaigns such as WhatsApp click-to-message ads that are billed together with advertising.
The fees will appear on invoices with clear descriptions by jurisdiction, such as “Italy digital services,” the company said, adding that taxes like VAT will still be applied on top of the total amount.
Advertisers were advised to review the affected ad accounts and share the update with their finance, procurement and marketing teams to prepare for the changes.
Tizeti Network Limited, West African broadband provider, has launched an advertising-supported internet platform across its hotspot network in Nigeria and Ghana, allowing users to watch short video adverts in exchange for data access.
The system converts advertising engagement into internet connectivity, offering users the option to view a short video advertisement to unlock data without paying upfront.
Tizeti said the platform is now active across all its hotspot locations in the two countries, covering residential areas, campuses, commercial districts and other high-traffic urban locations.
The service runs on Google Ad Manager’s rewarded web advertising technology, which allows users to voluntarily watch advertisements and receive data rewards once the video is completed.
At a hotspot location, users connect to the network as usual but are given the option to watch a short advert in exchange for a defined amount of data. Those who choose to participate can repeat the process to earn additional internet access.
The company said the approach creates a value exchange between users, advertisers and network providers.
Users gain internet access without immediate payment, while advertisers reach audiences who have actively chosen to view their messages.
“Internet access is a fundamental driver of opportunity,” said Nsikak Asuquo, West Africa manager at Tizeti Network Limited.
“By rolling out reward-based internet access across Nigeria and Ghana, we are expanding connectivity without financial barriers while offering brands a high-engagement platform to reach more than 2.5 million active users,” he added.
Tizeti said participation in the advertising programme is voluntary and operates under its privacy policies, with data handled in compliance with the Nigeria Data Protection Act and Ghana’s Data Protection Act.
The launch comes as Africa’s digital advertising market expands rapidly. Industry projections suggest programmatic advertising spending could exceed $5 billion on the continent by 2028 as brands increasingly shift marketing budgets online.
By integrating Google’s advertising infrastructure directly into its hotspot network, Tizeti aims to turn public Wi-Fi locations into scalable digital advertising channels while widening access to the internet.
Advertisers will be able to buy ad placements through Google Ad Manager’s ecosystem, including open auctions, private deals and programmatic guaranteed campaigns.
Tizeti said its hotspot network serves more than 2.5 million active users across Nigeria and Ghana.
The company provides broadband services using a mix of fibre infrastructure and public Wi-Fi networks, targeting communities, schools and businesses across the region.
National Information Technology Development Agency (NITDA) is partnering with Nkenne AI, a local artificial intelligence (AI) company, to develop language translation technologies tailored to the country’s diverse linguistic landscape.
There are more than 500 languages spoken nationwide, however many digital systems in Nigeria still operate primarily in English, leaving millions underserved.
NITDA and Nkenne AI have partnered with the ambition to improve accessibility and inclusion across Nigeria’s digital economy.
Nkenne AI’s chief executive, Michael Odokara-Okigbo, said the company is building localised AI translation tools designed for critical sectors, including healthcare, financial services and public administration.
According to him, these tools should enable users to interact with digital platforms in indigenous languages, thus improving accessibility and trust.
It’s not just a Nigerian challenge however, language barriers remain one of the biggest obstacles to technology adoption across Africa.
Beyond translation, the partnership between NITDA and Nkenne AI also seeks to strengthen Nigeria’s startup ecosystem by promoting responsible data practices and supporting emerging AI ventures.
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