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Digital infrastructure: mobile networks will capture 60% of investments in 2024 (Xalam Analytics)

Digital infrastructure: mobile networks will capture 60% of investments in 2024 (Xalam Analytics)

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Digital infrastructure: mobile networks will capture 60% of investments in 2024 (Xalam Analytics)

The increase in internet consumption in Africa, driven by the development of new uses such as digital payments, video on demand, e-commerce, online services, etc., is accelerating the advent of the digital economy on the continent. However, to meet this growing demand for connectivity, the expansion of digital infrastructure is becoming urgent.

Investments in digital infrastructure in sub-Saharan Africa continue to grow. According to estimates by Xalam Analytics, spending will reach nearly $7 billion in 2024, up from approximately $6.3 billion in 2020. This trend reflects the strategic importance of connectivity in a region where digital technology is seen as a lever for development and economic inclusion.

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Priority given to mobile networks

In its report “The State of African Digital Infrastructure,” published in March 2025, the firm indicates that nearly 60% of these investments were directed towards mobile networks, confirming the central role of telephony in the continent’s digital transformation. The expansion of 4G capacity, as well as the gradual deployment of 5G, are mobilizing the majority of financing. In several countries, coverage in rural areas remains limited, which is forcing operators to intensify their efforts to expand access and improve service quality.

This dynamic responds to a rapidly growing demand: with a young and connected population, sub-Saharan Africa is among the most dynamic mobile data markets in the world. The increase in internet traffic, fueled by the widespread adoption of smartphones, requires operators to increase the capacity of their infrastructures to avoid network saturation.

Optical fiber in the second line

Fiber optic deployment is the second largest investment item, accounting for nearly 20% of total spending. This funding aims to strengthen terrestrial networks and support the construction of submarine cables connecting the continent to global digital hubs.

The proliferation of connectivity initiatives—such as major cable projects led by international consortia and African stakeholders—opens up prospects for better integration of the continent into the global digital economy. However, the profitability of these projects still depends largely on countries’ ability to develop local distribution networks to connect fiber to households and businesses.

Data centers still underfunded

While progress in connectivity has been notable, the data center sector remains the poor relation of investment. Less than 7% of total spending has been directed towards this segment over the past four years. Yet the needs are immense: content hosting, cloud services, artificial intelligence solutions… all of which require a robust local infrastructure to reduce dependence on servers located off-continent.

Insufficient investment in this area maintains a strategic gap. Data storage and processing in Africa could promote greater digital sovereignty, reduce costs, and improve the performance of digital services. But for now, operators and investors remain cautious, hampered by high construction costs and energy supply challenges.

A strategic challenge for the future

Spending trends show that sub-Saharan Africa is on a trajectory to consolidate its digital infrastructure, even if imbalances persist. The priority given to mobile networks reflects the urgency of expanding internet access, but the entire digital ecosystem—from fiber to data centers—must be strengthened to meet digital transformation ambitions.

As governments multiply national digitalization plans and African companies innovate in digital services, the question of investment sustainability arises. Transforming this effort will require mobilizing more local and international capital, as well as creating a favorable regulatory environment so that the continent can not only consume, but also produce and host its own data.

According to Xalam’s estimates, digital players ”  in the region will have to spend between 7 and 8 billion dollars per year over the period 2025-2030, with fiber optics, data centers and the cloud accounting for nearly half of these investments  .” According to the Broadband Commission for Sustainable Development, this volume of investment could prove insufficient in view of the growing need for connectivity and new uses that require new infrastructure.

Currently, the ICT sector is largely supported by the private sector. ”  Mobile operators in sub-Saharan Africa have invested more than $28 billion over the past five years and are expected to invest $62 billion for the period 2023-2030  ,” adds the Commission, which hopes that governments will invest more in the foundations of their digital economy, which will also promote the construction of their own digital sovereignty.  

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19 September 2025

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