👨🏿‍🚀TechCabal Daily – Africa Data Centres raises $108.9 million

Cloud Computing

Africa houses less than 2% of the world’s co-location data centres.

These statistics come as no surprise, as the continent lacks energy infrastructure and government policies to support the launch of these data centres. While the government may be unable to support these data centres, external investors have jumped in. 

Since 2022, 25 new data centers have been launched on the continent, with big name data centre operators like Equinix and Microsoft launching in Cape Town and Nairobi. In February, Airtel also announced plans to launch its data centre in Kenya.

And now, Africa Data Centres, a telecom service provider, has raised $108.9 million to expand its capacity in South Africa. ADC, which currently operates four data centres across South Africa, will use the funding to increase its data centre’s power capacity by 20MW to support more servers and infrastructure.

The increased inflow of data centres across the continent might also be partly attributed to artificial intelligence, as systems need large amounts of data and computational resources to operate effectively. 

While these investments signify positives for Africa, there’s room for improvement. According to data from the Africa Data Centres Association, more than half of the data centres in Africa are located in South Africa, leaving room for investments across other regions in the continent. 

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Internet

Poor internet connectivity may be coming to an end in Africa with the activation of subsea cables. 

With the aim of spanning three continents and reaching 1.3 billion people, the 2Africa project is the world’s longest subsea cable designed to interconnect Africa, Europe, and Asia. It will provide high-speed internet to Africa’s remote regions and boost 4G/5G adoption.

Shortly after Google announced its first undersea fiber optic cable that will connect from Africa to Australia, Airtel Telesonic, the wholesale arm of Airtel Africa announced the activation of the first phase of 2Africa cable.

The first phase connects Kenya, Tanzania and South Africa thereby boosting internet connectivity across Kenya, Tanzania and South Africa.

Airtel Telesonic achieved this feat by partnering with well-respected Alcatel Submarine Networks (ASN) which specialises in building underwater cables with advanced technology. This partnership was essential for Airtel to achieve building 16 pairs of optical fibers.

Eight companies joined forces to create the 2Africa cable consortium: Bayobab, MTN, Center3, China Mobile International, Meta, Orange, Telecom Egypt, Vodafone Group, and WIOCC. 

The cable measures 45,000 kilometers and is the world’s longest subsea cable; it will connect 33 countries across Europe, Africa, and Asia. With landing points in 46 locations, this massive undersea infrastructure boasts a high capacity of up to 180Tbps, significantly boosting internet connectivity for millions of people.

In March, internet connectivity was disrupted causing telecommunications and banking services in some parts of Africa due to subsea cable cuts. Since then we have seen increased attention on protecting subsea cables and providing more cables to avoid a recurrence of the disruption.

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Fintech

When it comes to loans in East Africa, Safaricom is at the top of the game. Its Fuliza product, as of 2022, was being used by over 7.8 million East Africans who borrow KES1.57 billion ($12 million) everyday—over $5 million annually. 

Another loan offering, M-Shwari, has over 10 million customers and disburses 50,000 loans every day. Kenya’s lending market is so ripe, even the government jumped in for a bite with the launch of the Hustlers’ Fund in 2022.

Safaricom is also pushing deeper into this market by expanding its loan offerings. It has teamed up with Pezesha, a digital lender, to offer Mkopo wa Pochi, a loan product that will provide small business owners with convenient access to credit through their M-PESA business accounts. 

Launched as part of the M-PESA super app update, Mkopo wa Pochi complements Pochi la Biashara, Safaricom’s business wallet catering to small business owners. Pochi La Biashara users are business owners such as food vendors, small kiosk owners, boda-boda operators, secondhand clothes dealers, etc.

The partnership leverages both companies’ strengths: Safaricom’s vast M-PESA user base (over 32.4 million active users) and Pezesha’s expertise in digital lending.

Here is how the loan works; Mkopo wa Pochi offers short-term financing and is meant to be repaid quickly, with a base term of 7 days. Borrowers can choose to extend the loan for another 7 days, but there’s an additional fee for doing so.

Kenn Abuya has more important details in his coverage.

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Telecoms

If, like this writer, you wonder why you spend so much money on internet data, the Consumer Affairs Bureau of the Nigerian Communications Commission (NCC) has answers for you.

The NCC gave a broad range of reasons why your internet data is zapped away quickly, including malware and viruses, excessive usage of internet data, automatic app updates, unsolicited advertisements, and background data usage. GPS and location services like Google Maps also consume a lot of data. (Good luck finding your way.) 

It’s not all gloom, as the regulator has suggested cost-effective ways to help you “manage” your data subscription.

“You can connect to Wi-Fi at home, work, or in public places like cafes or libraries,” the regulator said.

The NCC also recommends turning off GPS and location services in certain apps and installing ad-blockers to help stop unwarranted in-app advertisements.If you’ve done all of this and still have complaints, the NCC said you should consider upgrading your data plan. 

If, like this writer, you don’t agree with the NCC and believe that MTN and it peers have a hand in the quick expiration of your data bundles, the regulator has instructed these Mobile Network Operators (MNOs) to conduct an independent audit of their billing systems.

Jobs

• Big Cabal Media – Senior Video Producer, Deputy Editor (Zikoko), Event Production Assistant, Client Account Manager – Nigeria 
• TechCabal – Features Writer, Features Director – Africa
• Leadway Assurance – Relationship Officer – Lagos, Nigeria
• Kuda Bank– Content Writer – Lagos, Nigeria
• Quidax – Market Operations Intern, Revenue Assurance Analyst – Lagos, Nigeria
• Carry1st – Growth Manager – Lagos, Nigeria
• Bumpa  – Senior Mobile Engineer, Senior Backend Engineer – Nigeria (Remote)
• Comiblock – SEO Specialist, Data Engineer, Machine Learning Engineer – Lagos, Nigeria

Here’s what we’ve got our eyes on

• Uganda banks on tax exemption incentive for the e-mobility drive
• Access Bank completes acquisition of Tanzanian lender in East African foray
• New AI for Africa report suggests a ‘just transition’ in the workplace

Written by: Faith Omoniyi & Towobola Bamgbose

Edited by: Timi Odueso

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