04 November 2024

Helen Weedon, managing director,
Satcoms Innovation Group

South Africa’s Liquid Intelligent Technologies recently signed a deal with Eutelsat Group that will see enterprise-grade Low Earth Orbit (LEO) satellite services being made available in Africa. The companies claim it will lead to enhanced performance for services across the continent. Will this help make Africa more connected and ultimately bridge the digital divide?

The state of connectivity in Africa

Africa is widely reported as lagging behind in internet connectivity. A report by SES in 2022 cited just 33% internet penetration. While it seems it has risen quite considerably since then, we are still looking at around 43%, much lower than elsewhere in the world. And there are bigger problems when you look at the regional differences. According to the SES report, while as many as 50% of people in urban areas are connected, this drops to 15% in rural areas. And of course those rural areas are also less connected in terms of other infrastructure, access to medical support and education, making the internet connectivity all the more important.

There is also a massive difference in different areas. For example, Gabon has reportedly the highest rate of internet access, with an estimated access rate of 64.9% of the population, while Zambia has the lowest rate of internet access, with only an estimated 6.9% share of the population having access. At the same time, access to computers and tablets is very low across Africa. In fact, according to a report by World Bank Group, only around 11% of individuals live in a household with access to a computer. Interestingly 43.9% have access to radio and 38.6% to a television, while as many as 76% have access to a mobile phone.

While Africa still lags behind, there has been recent movement to further connectivity in the region. Last year, SES introduced an additional satellite, SES-26, to provide much needed connectivity to the Middle East and Africa. We have also seen some satellite launches from countries across Africa, including Uganda and Kenya, and others are reportedly working on their own projects. However that comes with a high price tag, which is not feasible for many African countries. The East African Community (EAC) is trying to address that by collectively investing in a satellite to improve regional internet connectivity.

And, of course, the recent announcement by Liquid Intelligent Technologies and Eutelsat is set to see further connectivity brought to the region, perhaps most notably as it will use LEO satellites to deliver that.

The impact of better connectivity

It is clear that better connectivity would improve the lives of people across Africa. Findings from World Bank Group would suggest the enhancements would be staggeringly significant in fact, helping to dramatically increase economic growth. According to its report, a 10% increase in broadband penetration in Africa could increase GDP per capita by around 2.5%.

Internet connectivity is something we take for granted in other regions of the world. While we would likely all agree we would be lost without it, it can be hard to imagine what that actually means but the impact is wide-reaching. For one thing, delivering better connectivity enables better education and provision of information, which leads to better job prospects. The World Bank Group findings suggest that high-speed internet boosts employment, with individuals nearly 14% more likely to be employed.

Better connectivity can also improve healthcare provision, offering online healthcare services to treat patients better; improve agricultural production, by providing access to information to improve productivity; enhance governance, making governments more accountable with data more readily available and making it easier for citizens to contribute; as well as helping to improve social wellbeing with better connections. Improving connectivity also enables small businesses to succeed and grow.

Can LEO help?

Despite a flurry of activity aimed at getting Africa online, it is clear that we still have a long way to go to bridge the digital divide. The announcement by Liquid Intelligent Technologies and Eutelsat is significant as it will see LEO satellites being used to enable that connectivity. Why does this matter? The main advantage of LEO for a region such as Africa is the huge cost savings compared to more traditional satellites. While it is true that you need more satellites to cover a specific geographical area, the cost to launch much smaller satellites into an orbit that is considerably closer to earth, is a lot lower, making the overall costs lower. The relative proximity also makes the operational costs lower meaning that service provision can be more affordable.

There has been a great deal of discussion over recent years about the need for the ground segment to keep pace with LEO. Maximising the potential of LEO requires simpler, more integrated ground solutions to be provided at a lower cost than ever before. The growth of LEO and the upcoming mega constellation launches has therefore led to innovation in the ground segment, with solutions launching to get us there.

There is already an abundance of lightweight antennas built for LEO, that are easy to install and at a much lower price point than previously possible. This could make rollout across Africa much more attainable. However, when it truly gets interesting is when we see the widespread introduction of satellite-to-cellphone connectivity. Given that 76% of people across Africa already have access to a mobile phone, this will certainly be a game-changer.