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Opinions of Wednesday, 1 April 2015

Auteur: BBC

Is fibre optic cable key to Africa's economic growth?

The elite of Kenya's much-heralded entrepreneurship revolution work in an ultra-modern co-working space overlooking the bustle of Nairobi.

Their businesses are reliant on the high-speed internet available here.

The Nairobi Garage is one of a limited number of workspaces in the city boasting a dedicated 25 megabits per second [Mbps] fibre internet connection.

Fibre is definitely not the norm in Kenya - a country viewed as a leader in African technology innovation. In financial terms, fibre internet is way beyond the grasp of most entrepreneurs and small businesses.

A 25Mbps connection costs in the region of $4,000-$5,000 (£2,700-£3,380) a month.

"Tech is taking off in Kenya thanks in large part to the arrival of fibre internet - unfortunately the cost of this to companies is still extremely high.

"Large companies like banks can afford the prices of corporate internet, but for start-ups and SMEs [small and medium sized enterprises] the costs are crippling," says Hannah Clifford, general manager at Nairobi Garage.

Over 100 small businesses have started out life in the communal workspace, which currently accommodates 30 start-ups all using the stable high-speed internet connection offered at a subsidised cost.

"Through shared workspaces like Nairobi Garage, which is aimed at supporting the start-up sector, young businesses and entrepreneurs are able to get internet access as part of their office space at very affordable rates.

"High-speed, reliable internet is vital for these young businesses to compete with the likes of Silicon Valley," she says. 'Human right'

Companies such as Liquid Telecom are working to make fibre internet a reality across Africa. By the end of the year it will have spent about $500m (£337m) laying more than 18,000Km of fibre cable on the continent, making it the owner of the largest fibre network in Africa.

It has also started working on providing fibre-to-the-home - a service now beginning to be enjoyed by some customers in Zambia and Zimbabwe.

Chief executive Nic Rudnick is convinced that fibre roll-out is a human right as well as a business necessity. He says the "backbone" Liquid is laying will contribute to Africa's economic growth.

"Liquid Telecom was founded based on a conviction that telecoms connectivity is now a basic human right. We've devoted a tremendous amount of time, strategic thinking and good old-fashioned hard work to create the largest and fastest single fibre network across Africa," says Mr Rudnick.

"Traffic comes onto it from across Africa and from other continents. Access is not limited to just our direct business and retail customers. We sell capacity to other operators.

"I firmly believe that the small businesses of Africa need access to affordable broadband to grow. Fibre is key to the future economic prosperity of Africa."