• Senegal targets digital hub status by 2034 but faces connectivity-profitability tradeoff

• 540 uncovered zones, 7 million affected, upgrades costly amid margin pressure

• Operators urge incentives, infrastructure sharing, and regulatory support to sustain investment

The telecommunications sector is a central pillar of Senegal’s New Technological Deal, which aims to turn the country into an African digital hub by 2034. The industry, however, faces a fundamental dilemma: how to accelerate universal connectivity without undermining the profitability of private investment.

Telecom operators and service providers met in Dakar on Thursday, Feb. 5, at a forum organised by KPMG and Helios Towers. Under the theme “Digital Infrastructure and Universal Connectivity: Stakes, Models and Perspectives,” participants delivered a clear message to policymakers. Universal digital inclusion is achievable, but only if investment returns are adequately protected.

The scale of the challenge is significant. Alioune Sall, Minister of Communication, Telecommunications and the Digital Economy, said Senegal currently has 540 “white zones” with no network coverage, while more than 700 localities still rely on 2G technology and require upgrades. He added that an estimated 7 million Senegalese are affected by the digital divide, with direct consequences for the economy.

Extending connectivity to these areas remains costly and complex in a highly competitive market characterised by sustained pressure on prices and margins.

According to Ndeye Fatou Touré of KPMG Senegal, the debate has shifted. She said the issue is no longer about vision, but about expanding connectivity while keeping costs under control.

Investment pressure and infrastructure sharing

Investment requirements remain substantial. Fatou Sow Kane, chief executive of Expresso, said the group has already invested nearly $500 million and continues to pursue large-scale network expansion. In 2025 alone, 123 sites were added, with a further 171 planned, alongside an extension of the fibre-optic network, which now spans nearly 400 kilometres. The central issue, she said, is whether such investments remain economically viable, adding that operators require appropriate safeguards and policy support.

To address these constraints, infrastructure sharing is increasingly seen as a key model, though it requires a clear and transparent framework. Mamadou Bousso of Sonatel said the company supports sharing in principle, provided costs are fully accounted for.

He explained that deploying a shareable fibre socket, currently being tested, costs 80% more in capital expenditure than a non-shareable one. Reaching the target of one million additional fibre sockets by 2028 would therefore require an 80% increase in CAPEX if the infrastructure is designed for sharing. With investment budgets already under pressure, he said regulators must define clear and binding commitments for all operators. Under such conditions, infrastructure sharing would naturally contribute to digital inclusion.

The sector is calling for a climate of trust and an incentive-based regulatory framework. Key demands include streamlined taxation to free up investment capacity, stronger protection of sites against vandalism, simplified land-use procedures and clearer environmental standards.

Another critical constraint is the availability of stable and affordable electricity outside major urban centres. Power shortages drive up operating costs, undermine service quality and threaten the profitability of rural deployments.

The government’s central role

The Dakar meeting also underscored the need for a redefined public-private partnership. Dahirou Thiam, director general of the Telecommunications and Posts Regulatory Authority (ARTP), said sector investment rose by 72.39% in 2024 to 245.66 billion CFA francs. Of this total, 54% was allocated to internet services, 30% to mobile networks and 16% to fixed lines, reflecting operators’ strong commitment to connectivity.

In response, Minister Sall said the government was ready to act. He said the state would do everything necessary to ensure that all industry players operate under suitable conditions and acknowledged the scale of investment already made. Senegal, he added, is firmly committed to inclusive and sustainable universal connectivity and called on operators, investors and partners to work closely with the state to build a resilient digital ecosystem capable of supporting the country’s economic and social development.

Muriel EDJO