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For the 50% of the world’s population estimated to lack internet access, the biggest barrier is cost, according to a new report from the Alliance for Affordable Internet – and nobody pays more than Africans.

The average cost of 1GB of data on the continent is 7.12% of average income, with some countries having rates as high as 20%. The figure is well above the 1%-2% deemed to be affordable, contributing to the so-called digital divide – the gap between people with ready access to the web and those without.

This is particularly pronounced in Africa.

Despite the success of mobile phones since the turn of the century, average broadband penetration stands at just 25%. This is according to the World Bank, which estimates that it will take $100 billion in the next decade to achieve universal access.

Eighty percent will need to go directly to infrastructure maintenance and development, supported by regulation to drive competition and investment.

Achieving all of this will require “exceptional and coordinated efforts” from governments, businesses, and donors, according to the Bank.

It’s a tall order, but making progress is crucial.

African economies are being left behind in the digital economy, which now accounts for up to 15.5% of global GDP. The continent’s share of this is less than 1%.

This report reflects the views of the author alone, not those of How we made it in Africa.

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Today’s picks

From the continent

Ethiopia is planning to issue two new licences to multinational mobile operators by April 2020, pushing back an original timeline of the end of 2019. The licences are part of a liberalisation drive of the state-controlled sector, which is Africa’s last major untapped mobile market. More: Reuters

Angola’s central bank has stopped using a trading band for its kwanza, limiting the currency’s movement at auctions to 2%, contributing to an 18% slide against the dollar this month. This follows a $3.7 billion loan from the IMF, which has urged Africa’s second-biggest oil producer to free-float the currency. More: Bloomberg

The global perspective

Volkswagen is considering expanding a new ride-sharing business being trialled in Rwanda into Ghana, and will make a decision on the matter in January. The German giant is among a number of major car manufacturers ramping up their investment on the continent. More: Reuters

Tanzania’s government has issued strict new conditions to Chinese investors seeking to develop its $10 billion Bagamoyo port project, including the removal of planned tax breaks and a reduction in the lease period from 99 years to 33 years. The project, which would be East Africa’s biggest deep water port, was suspended in June. More: The East African

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