MobileDataProvidersIn AfricaStill OverchargingUsersAfrican Consumers

MOBILE DATA PROVIDERS IN AFRICA STILL OVERCHARGING USERS AFRICAN CONSUMERS

Despite Africa?s accelerated drive towards a digital future, the high cost of data remains a major impediment to digital innovation and a connectivity obstacle for millions of Africans.

Information gathered by British provider Cable UK indicates that on average, African providers charge $3.30 per gigabyte. This limits smartphone users?ability to access opportunities, including access to quality jobs accessible via online job portals, digital educational material and the ability to connect with loved ones over social media, even with the inexorable spread of mobile phones and Internet connectivity across the continent.

According to the UN, internet access is considered affordable when the cost of a gig is less than 2%of gross monthly income. However, in Africa, data prices are 5.7%of gross monthly income compared to 2.7% in South America and 1.6% in Asia-Pacific.

Malawi is an extreme example of an African country with inflated data prices. One gigabyte of mobile data costs an average of $27.41. The United Nations recommends that this amount of data should cost no more than 2%of gross national income per capita. In Malawi, the equivalent cost is 87%.

South Africa also suffers from the problem of expensive data. President Cyril Ramaphosa announced increased efforts to reduce the price of South Africa?s pre-paid monthly data bundles. These efforts are focused on introducing data price discounts across the country?s mobile network operators for low-income households. Free daily data allocation and free access to education and other public interest websites were also proposed. The success of this initiative would effectively enable South Africa to capitalize on digital opportunities, which are sweeping across the globe at a rapid rate.

The 21st century is being reshaped by the internet. Reductions in data prices will not only enable Africans to connect to, but also embrace the wealth of digital opportunities. In doing so, inclusive growth can be promoted, and we can connect people and businesses to a digital future. 9 The Diaspora - African Magazine | Jan 2022

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