Obstacles of submarine and inland cables in Africa

  • Market Insight 2024年12月12日 2024年12月12日
  • 非洲

  • Technology risk

Technology has evolved rapidly over the past decades, and Africa is seeing a considerable investment in submarine cables due to the rapidly growing demand for broadband in the continent. These undersea or submarine communications cables are laid on the seabed between land-based stations, bridging vast oceanic expanses to connect different continents and countries. This technological marvel enables transmission of data at high speed and large volumes over long distances, fostering a global connectivity network and in some instances reducing the connectivity and user costs compared to alternative sources of internet.

East Africa became acutely aware of the submarine cables and their connectivity to the rest of the world due to an internet outage in March 2024. Based on online information, the reason for the outages is that four of the major undersea data cables serving Africa, including the West African Cable System (WACS) and the East Africa Submarine System (EASSy), were severely damaged somewhere near the Ivory Coast arising from seismic activity on the seabed.

For Africa to compete globally and join the digital economy, it is imperative to have internet connectivity that is readily available, reasonably priced, and stable. Despite having a growing demand, Africa lags behind the rest of the world in Internet consumption, with mobile phones that is, services provided by mobile network operators accounting for the majority of access, rather than broadband. Enhanced communication stimulates economic expansion and makes it easier for people and companies to connect and access wider markets. Let us look at what unique challenges are in the African continent.

Unauthorised occupation and lack of land planning

Laying underground fiber optic cables is an expensive venture and comes with technical challenges in most African countries. Inland underground fiber options are laid on public land mainly along roads and highways where the land belongs to the Government. However, it is not uncommon in most African jurisdictions for construction to occur without valid permits and there are plenty of unplanned occupations e.g. slums. In some cases, the areas are planned but the city plans maps by the Governments do not match the situation on the ground. Also, unauthorised digging or excavation may lead to cutting off the fiber cables and causing damage, leading to considerable costs of repair. Also, any repairs become difficult due to an unauthorised occupation along the route where the fiber cable is passing. Due to an unauthorised occupation, it becomes necessary to pay compensation and implement relocation before laying the fiber cables even when the occupants are trespassers to public land. In addition, getting approval to lay the fiber optic cables on public land has bureaucracy and Africa has low land security of tenure. 

Post-fiber deployment management

The laying of fiber cables has its challenges but the risks do not end at completion of laying the fiber cables. Post management and security of the cables become necessary. Some African countries are unstable and it’s a risk to the fiber cables inland and offshore. Also, there are piracy and terrorist activities in addition to wars and political unrest which make it difficult to secure the fiber cables due to the large area size where the fiber cable cut across. Although the fiber cables may be owned by private investor companies, African Governments need to chip in the security measures to secure the investment because it reaps the returns of such investment. 

Environmental factors

Laying of fiber cables inland and/or offshore are common although there are aerial fiber optic cables. Regardless of the nature of the fiber optic cables, there are considerable environmental factors that pose a challenge. Acts of God e.g. earthquakes, tornadoes, etc. can disrupt the fiber cables significantly and lead to outages and expensive repair costs. Such environmental factors are expected to significantly increase due to the ongoing climate change caused by human factors.

No unified administration and bureaucracy

It is without a doubt that the laying of fiber cables cut across various African jurisdictions. The persons laying the cables e.g. mobile network operators are required to apply for multiple licenses and permits before obtaining approval to proceed with laying the cables. Also, constant changes in the underlying laws can be a contributing factor in the slowdown of investment in inland and marine cables. Although overall Africa has been gearing towards a common system, there has been very little integration and uniformity across African countries. This makes it difficult/challenging for fast expansion and investment in this venture. Also, there are multiple fees imposed across regions and countries where the fiber cables are passing which adds to the costs and bureaucracy in managing the multiple fee structures.

Limited finance

Due to the challenges stated above and other real and preserved risks, Africa ranks low in inward investments in this sector. Most countries are still ranked as high-risk jurisdictions so deployment of capital for such ventures is limited, which gradually affects all other sectors. Submarine networks and cables are the lifelines of global communication and digital markets, enabling seamless data transfer across continents. Africans and their Governments should deploy more funds in support of expansion of fiber optic networks and gain a competitive edge.

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