AfricaCom – On My Own, but Not Alone

First time attending AfricaCom in my new role on my own. It was an incredible few days at AfricaCom, engaging with ex-colleagues, new partners, existing and potential clients. The event is undoubtedly a fantastic platform to exchange big ideas, learn from each other, and explore new opportunities for collaboration. I strongly believe in the power of partnerships, especially when it comes to expanding digital infrastructure in emerging markets. This is not a journey to take alone—it requires working alongside experts, investors, and doers to achieve success.

Here are my key takeaways:

Data Centers

There was a significant focus on data centers this year. The exhibition showcased major players alongside supporting energy, DCIM, and related infrastructure providers—the nuts and bolts of the industry. However, there remains some skepticism about when large-scale expansions will truly take off. Conversations with Development Finance Institutions and Private Equity Investors highlighted a shared effort to understand the driving factors needed to unlock demand.

Back in 2019, I conducted due diligence on a pan-African data center just as Microsoft and AWS launched their cloud services in South Africa. At the time, I anticipated that next-frontier markets like Kenya and Nigeria would follow suit within two to three years. Unfortunately, COVID-19 and subsequent high interest rates delayed this progress. Many hyperscalers have since reprioritized their CAPEX toward AI training data centers in developed markets. Issues like data sovereignty and limited access to reliable power continue to delay major developments. However, this isn’t a question of if, but when. Success in this space will favor those who can secure hyperscaler clients, as the trend is moving toward cloud-based applications. Traditional co-location services are expected to decline, except in specific private cloud deployments.

Submarine Fiber

Submarine fiber dominated discussions during the latter half of the conference—a particularly hot topic following the 6/10 cable failures earlier this year, along with challenges surrounding ACE and countries reliant on a single cable landing station. The upcoming launch of 2Africa is expected to have a significant positive impact. Resilience in submarine connectivity is crucial and could play a pivotal role in encouraging more cloud providers to invest in Africa. Reliable international connectivity is a prerequisite for such investment. The current surge in data center investments in APAC correlates directly with FAANG companies building out submarine capacity in the region.

Terrestrial Fiber

I had hoped for more discussion on terrestrial fiber, but it was evident that submarine fiber and data centers were the more pressing topics. For me, resilience is not just about expanding submarine fiber but also about establishing more cross-border terrestrial options and regional exchanges. Industry leaders like Liquid and WIOCC were present, alongside emerging competitors such as Paratus and BCS. Discussions revolved around closing east-west corridors, with Paratus announcing its new links between Mozambique and Namibia, and others eyeing opportunities in DRC and Angola.

However, monetizing fiber remains a challenge—not only in terms of local demand but also in access fiber. The market currently feels like a land grab, with players like Starlink offering cheap, short-term solutions that are beneficial for consumers but pose challenges for long-term competition and infrastructure investment, upsetting the mobile operators and other fixed providers in the market. We’ve seen the risks of prices dropping too quickly, which fail to adequately compensate for the costly infrastructure required to meet growing consumer demand for bandwidth.

Take a day off

Finally, I believe it’s important to take a day off after a four-day conference—especially when you’re in a beautiful city like Cape Town. Cycling along Chapman’s Peak is an incredible experience and a perfect way to absorb the beauty of the region. Taking time to enjoy and reflect on the insights from the event is invaluable. Cape Town and AfricaCom never fails to inspire me.