• Africa needs $36 billion yearly for fiber-optic investment through 2040

• Network growth expanded internet access, but affordability remains a challenge

• OECD urges greater private investment amid rising public debt burdens

Africa will need to invest about $36 billion a year in fiber-optic cables through 2040 to accelerate the continent’s economic transformation, according to a report published in late November by the Organisation for Economic Co-operation and Development (OECD) and the African Union Commission (AUC).

The amount represents around 23% of Africa’s annual infrastructure investment needs, estimated at $155 billion. It is lower than projected spending needs for roads ($50 billion) and railways ($38 billion).

The authors attribute this mainly to progress made over the past decade through public and private investment. Africa’s operational fiber-optic network expanded significantly, from about 466,000 kilometres in 2010 to 1.3 million kilometres in 2024, helping to quadruple the share of the population with internet access, the report said.

Despite the rapid rollout of digital infrastructure, major challenges remain, not least affordability. Monthly broadband internet costs in 18 African countries averaged $56 in 2024, compared with $46 in Latin America and the Caribbean and $17 in developing Asian economies.

The report also highlights the importance of public digital infrastructure in supporting businesses and public services. Strengthening these systems could help simplify customs procedures, expand cross-border digital services and trade, support the integration of renewable energy systems and improve access to trade finance for small and medium-sized enterprises.

Mobilising private investment

To meet financing needs, African governments will need to rely more heavily on private investors, the report said.

Public authorities have limited fiscal space as sovereign debt burdens rise. Between 2019 and 2023, African governments spent seven times more on debt servicing than on infrastructure investment on average, and in 15 countries, interest payments exceeded total infrastructure spending.

The private sector already plays a major role, and a more supportive regulatory framework could increase its involvement over the medium and long term, the authors said. Between 2016 and 2020, private investment dominated digital infrastructure, accounting for 55% of total commitments, compared with 1% in water infrastructure and 7% in transport, which rely more heavily on governments and development partners.

On average, railway construction and fiber-optic deployment also deliver strong economic returns, the report said. Railways have the highest unit costs but generate substantial productivity gains and are less polluting than road transport. Fiber-optic cables generate lower returns but are the least expensive form of infrastructure per unit.

Espoir Olodo