The Economic Impact of the Recent Internet Disruption in Africa

Since last week, Africa has faced unprecedented internet outages. Reports from Netblocks, an internet observatory, revealed that the disruptions are due to several damaged subsea cables. The damage has impaired essential subsea fibre networks, notably WACS, MainOne, SAT3, and ACE, leading to a significant downturn in the telecom sector. The affected countries include Benin, Burkina Faso, Cameroon, Cote d’Ivoire, Gabon, Gambia, Ghana, Guinea, Lesotho, Liberia, Namibia, Niger, Nigeria, South Africa, and Togo. This prolonged disruption adds a layer of complexity to the array of mobile network and internet outages over the past year. These disruptions signal a critical point in the continent’s digital infrastructure crisis. The economic repercussions of these internet disruptions are profound. Businesses across various sectors, from finance to manufacturing and e-commerce, rely on internet connectivity to conduct operations, communicate with clients and customers, and facilitate transactions. In 2019, when many African countries suffered multiple internet shutdowns, it cost Africa, $5.29 billion. The continuity of these internet and mobile network interruptions will affect productivity and revenue, amplifying the operational difficulties for businesses within an already challenging economy.

VENTURES AFRICA