Telecom
Ready for African Data Boom?
Opinion by David King
Africans like their mobile phones, too. So surely the African continent will simply follow the same telecom development and usage pattern as the rest of the world, just maybe a little later?
Well, not quite. Africa has proven to be somewhat different when it comes to mobile telephony; Just look at the unexpected speed with which cellphone usage took off as it substituted for the lack of fixed-line networks and other key infrastructure.
Africa has always had myriad challenges for mobile operators and other telecom companies to overcome: lack of or substandard infrastructure, political uncertainty, regulatory issues, challenging environments, vast and sparsely populated geographical areas to cover, unreliable energy supplies and poorer target groups.
These challenges have been overcome with ingenuity and perseverance. Prepaid cards in small denominations sold in numerous mobile booths have given consumers with little money access to mobile telephony.
Off-grid base stations are increasingly using green power solutions almost completely replacing the use of dirty and expensive diesel.
Roaming costs are often lower than in the developed world, enabling communities separated by colonial borders to communicate. M-PESA and other mobile money systems have revolutionised the way money is transferred, making it possible for almost everybody to use basic banking services.
Africa-Next Market for Data Boom
It is no great secret that the next big step for Africa is the “post-mobile data revolution”. The penetration of data in African markets is still low, even in South Africa, and prices are still high. And even if everybody agrees that data will take off in a big way, it is difficult to predict when it will happen and how fast. There are of course going to be a number of challenges to overcome.
How can you best prepare to quickly respond to the anticipated demand without investing too much too early?
The biggest challenge is infrastructure. High quality, efficient data centres are essential. They house and power all the equipment needed for transmission of data and are both the heart and brain of any network. But traditional builds for data centres take a lot of time to plan, co-ordinate (with different suppliers) and construct.
Furthermore, challenging environments add a lot of risk to a data centre project, often resulting in delays and budget over-runs.
Buildings for data centres are often not purpose built to be used as technical facilities, often with water leaks and other problems, as well as being over-dimensioned since they cannot be expanded quickly and easily.
Pre-fabricated Modular Data Centres Ideal for African Networks
The solution is pre-fabricated modular data centres. They are quicker to deploy and will in most cases save considerable time and money compared to traditional brick and mortar buildings.
The facility will always be the “right” size since its modular structure makes it easy to quickly expand in response to changing needs.
More efficient power and cooling will make a pre-fabricated data centre more cost effective to run. And quality, budget and the time plan can more easily be ensured for pre-fabricated purpose built facilities, bringing predictability to the project.
A pre-fabricated solution also makes it much easier to customise the data centre for specific needs and it can be deployed anywhere. Let us take a look at a live example: Vodacom in Mozambique (a subsidiary of Vodafone) recently decided to deploy a modular data centre (the eCentre) on top of a six-storey parking garage next to its corporate headquarters in central Maputo.
The roof top turn-key deployment is a 126 square meter open space data centre. Vodacom needed to put the facility in place quickly, efficiently, and on time.
The pre-fabricated build reduced the project risk significantly because the construction work was all done in ten weeks in a clean environment (in Sweden) and the installation work needed on site was completed in only eight days, in total a fraction of what a similar local brick and mortar project would have taken.
Speed and predictability in challenging environments are critical issues in Africa considering it is the fastest growing mobile market in the world and the take off for data could be right around the corner.
Pre-fabricated, modular and custom-designed data centres that can be deployed very quickly, and easily re-deployed if needed, is yet another innovative solution to an African problem (or rather African situation, since there is nothing problematic with fast growth).
It is a solution that will allow data centre owners – internet service providers, hosting companies, mobile operators and banks – in Africa to act quickly and confidently towards a demand for data that might be stronger than any of us expect.
David King is CEO of Flexenclosure, a specialist developer of hybrid power systems and pre-fabricated data centres for the ICT industry.
King has decade-long experience from C-level work with many international high-tech companies, many in emerging markets.
Dimension Data has said that the proceeds from its Series 1 corporate bond, will support the expansion of the company’s fibre infrastructure to meet Nigeria’s growing demand for digital connectivity.
This followed the successful subscription of the corporate bond.
Recall that Dimension Data Limited said that it has completed the signing ceremony for the issuance of N4.05 billion (approximately US$2.9 million).
This sum marks the first tranche of a N20 billion (US$14.7 million) bond programme announced earlier this year.
The bond programme was raised under Dimension Data SPV Funding Plc, following approval from the Securities and Exchange Commission (SEC) of Nigeria.
The company says the proceeds will support the expansion of the company’s fibre infrastructure to meet Nigeria’s growing demand for digital connectivity.
Speaking at the ceremony, Olugbenga Olabiyi, managing director of Dimension Data Limited, said the investment reflects the company’s long-term commitment to strengthening Nigeria’s digital economy.
The planned investments will fund the continued expansion of Dimension Data’s fibre network, supporting increasing demand from financial institutions, fintechs, enterprise customers and other technology-driven sectors.
Founded in 1983 and headquartered in Johannesburg, the company has grown its footprint across the Middle East and Africa.
Today Dimension Data is a member of the NTT Ltd Group, one of the world’s leading technology companies.
As cloud adoption, digital financial services and data-intensive applications continue to grow, the company believes resilient fibre infrastructure will remain a critical enabler of Nigeria’s digital economy.
The Federal Government has announced that work will commence within weeks on a 90,000-kilometre fibre optic network expected to connect every state, local government area and ward in Nigeria, marking what officials describe as one of the country’s most ambitious digital infrastructure projects.
Dr Bosun Tijani, Minister of Communications, Innovation and Digital Economy, disclosed this on Tuesday after briefing President Bola Tinubu at the State House, Abuja, on the progress of three flagship digital transformation initiatives being implemented by his ministry.
According to the minister, all resource mobilisation and contractual processes for the nationwide fibre project have been completed, paving the way for physical deployment.
“We’re now at the point where, in a few weeks’ time, we should start to lay those fibre, so people will start seeing us around the country deploying the fibre. This is going to transform Nigeria for good,” Tijani said.
He explained that the project would deliver fibre optic infrastructure to every geopolitical zone, state, local government area and ward, significantly expanding broadband access and improving the quality of internet connectivity across the country.
“This is a project where every state, every geopolitical zone, every local government and every ward in this country will be covered with fibre optic cables, which will transform the quality of connectivity,” he added.
Bosun Tijani attributed the progress in the digital economy to a series of reforms approved by President Tinubu, including the designation of digital infrastructure as Critical National Infrastructure, tariff adjustments and tax harmonisation measures sought by industry operators.
“I think our sector has been extremely fortunate. Mr. President has given us quite a number of things that the sector has been demanding for a long time. Whether it’s the Critical National Infrastructure designation for all digital infrastructure, the slight adjustment in tariff, or the tax harmonisation, these are reforms the industry has long requested.
“I think it’s probably the sector that is most appreciative of this government because when we came in, the sector was contributing between 16 and 18 per cent to our GDP, but today it is tracking close to 21 per cent. That represents significant growth,” he said.
The minister noted that the reforms had also improved the financial performance of major operators in the telecommunications sector.
On efforts to bridge the digital divide, Tijani disclosed that the government would begin deploying about 3,700 telecommunications towers from October to provide network coverage for more than 20 million Nigerians currently living in underserved communities without access to telecom services.
He said the President had approved the project after months of capital mobilisation and planning.
“Today we’re at a point where, before the end of the year, we’ll also start to deploy close to 3,700 towers. It’s taken a lot to put this project together and raise the required capital, but we are now ready to begin deployment around October,” he said.
The minister also announced that Nigeria would officially launch an alphanumeric postcode system on October 1, a move he said would place the country among a select group of nations operating an advanced digital addressing system.
“Nigeria will be amongst maybe 10 or 15 countries in the world with an alphanumeric postcode. It’s the latest design in postcode systems, where we can identify every property in this country. We’re hoping to launch that on the 1st of October,” he said.
Tijani explained that the new system would assign a unique address to every property nationwide, enhancing logistics, accelerating e-commerce, improving emergency response and strengthening public service delivery.
“Inability to locate places comes at a cost. You can imagine what this will do for e-commerce. It means goods can now be delivered in record time,” he said.
He added that integrating the postcode system with existing government identity databases would improve security and make public services more efficient.
“Our alphanumeric postcode is unique because it allows us to assign a unique address to every property. In many countries, such as the UK, postcodes cover clusters of buildings. What we are introducing will uniquely identify every building, and that will be a game changer for Nigeria in terms of security, commerce and public service delivery,” the minister stated.
In a bold move to strengthen Nigeria’s digital sovereignty and the digital economy, the National Information Technology Development Agency (NITDA) has formally unveiled the National Sovereignty Cloud Initiative (NSCI) Regulatory Instruments, thereby setting a new benchmark for the country’s digital future.
NITDA
The NSCI is a strategic programme of the federal government coordinated by NITDA. It is designed to bolster Nigeria’s digital sovereignty and accelerate the country’s adoption of reliable cloud infrastructure. The initiative consists of the National Computing Guideline, the National Cloud Technical Guideline, the National Digital Infrastructure Assurance Framework, and the National Cloud Investment Strategy.
Speaking during the ceremony in Abuja, the Director General, Kashifu Inuwa Abdullahi CCIE, described the NSCI as a strategic move to safeguard Nigeria’s digital future. He noted that the instruments will stimulate innovation, encourage investment in local cloud services, and enhance digital resilience.
“These instruments provide the regulatory certainty, technical standards, and assurance framework required to build a trusted cloud ecosystem that safeguards Nigeria’s digital sovereignty while creating new opportunities for investment, innovation, and sustainable economic growth.
“We should position ourselves not to serve Nigeria alone, but to serve West and Central Africa. Nigeria is already the digital gateway to West Africa and can extend to every part of Africa. But we can only realise that goal when we build our infrastructure. So, today’s event is the first step in that direction,” he stated.
Abdullahi appreciated the support of relevant stakeholders and the efforts of the NSCI Technical Working Group, which culminated in the successful development of the regulatory instruments. He emphasised that collective action of regulatory agencies is necessary for a seamless implementation of the initiative.
Speaking earlier, the Permanent Secretary of the Ministry of Communications, Innovation, and Digital Economy, Engr. Nadungu Gagare, declared that the launch of the NSCI underscores the federal government’s commitment to safeguarding Nigeria’s data borders and digital economy.
“By ensuring that government data remains strictly within national jurisdiction and under local operational control, we are guaranteeing data sovereignty and regulatory compliance. It will catalyse local cloud capacity, foster local job creation, and empower indigenous investors and innovators to build solutions on a secure, locally hosted foundation,” Gagare said.
The Permanent Secretary commended the management team of NITDA, the NSCI Technical Working Group, and other stakeholders for their collaborative spirit in driving the initiative. He promised that the Ministry would ensure that the strategic objectives of the NSCI are fully realised across all ministries, departments, and agencies.
In a message, the Governor of the Central Bank of Nigeria (CBN), Dr Olayemi Cardoso, congratulated NITDA for promoting a collaborative approach, adding that modern digital regulation succeeds through coordinated regulatory actions for common national objectives.
Cardoso, who was represented by Dr. Rakiya Opemi Yusuf, the Director of the Payment System Supervision Department, acknowledged that the launch testifies to the robust collaboration existing between the apex bank and other government institutions.
“CBN regulates the financial ecosystem. NITDA provides the national framework for digital infrastructure, cloud governance and assurance. These responsibilities are complementary, not competing. Together, they create a coherent national architecture.
“Together with NITDA, and with the continued cooperation of industry, we will continue to build an ecosystem that protects Nigeria’s financial system today and positions our nation as Africa’s trusted hub for digital finance and cloud innovation.
One of the most encouraging aspects of today’s event is the strong institutional collaboration between NITDA, the CBN, and other relevant government institutions. This collaboration demonstrates an important principle.”
Cardoso reiterated that as a responsive regulator, the CBN remains committed to providing clear expectations, firm principles, proportionate implementation, and constructive engagement with all stakeholders to position Nigeria as Africa’s trusted hub for digital finance and cloud innovation.
Also, the Managing Director/CEO of Galaxy Backbone Limited, Prof. Ibrahim Adeyanju, noted that the NSCI couldn’t have come at a better time than now, especially considering CBN’s recent directive mandating banks and financial institutions to localise their data.
Adeyanju expressed confidence that the initiative would push the ecosystem to greater heights by encouraging investment, developing indigenous talent, and creating employment opportunities akin to the gains brought by the deregulation of the telecoms sector.
NITDA will constitute the Sovereign Cloud Governance Committee (SovGov) within the next two weeks to oversee the implementation of the NSCI. The committee would comprise representatives from relevant Government institutions, sector regulators, industry, and the private sector, with NITDA serving as the Secretariat
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