High data costs, rural gaps threaten Africa’s digital inclusion - Report

High data costs, expensive digital devices and weak rural connectivity continue to slow Africa’s efforts to achieve meaningful digital inclusion despite increased investment in technology infrastructure, a new study by Paradigm Initiative shows.

The report, 'Digital Inclusion in Africa: Mapping the Ecosystem Gap,' assessed digital inclusion ecosystems in six countries: Ethiopia, Algeria, Namibia, Côte d’Ivoire, Mozambique and the Democratic Republic of Congo (DRC), examining government policies, funding, private-sector participation and connectivity.

The study says Africa’s digital divide extends beyond access to the internet, with affordability, digital skills, relevant local content and participation in the digital economy also determining whether people benefit from technology.

It warns that the gaps are particularly pronounced among women, young people and rural populations.

Affordability remains a major challenge, with the cost of 1GB of mobile data reaching as much as 8 per cent of monthly income in Ethiopia and Mozambique. This is four times the UN affordability benchmark of two per cent.

High device costs are also limiting access, particularly among low-income and rural households. The report notes that even where network coverage exists, the cost of smartphones and data can prevent people from using digital services regularly.

The rural connectivity gap is equally significant. While urban areas across the six countries generally have strong 4G networks and some are piloting 5G, rural communities continue to rely on slower networks or community access points.

In Ethiopia, only 45 per cent of rural areas have mobile coverage, mainly through 2G and 3G networks, while broadband penetration is below five per cent. Mozambique and the DRC also face significant rural connectivity challenges, with satellite technologies being used as temporary solutions.

Digital innovation infrastructure is also concentrated in urban centres. About 80 per cent of Ethiopia’s digital hubs are located in Addis Ababa, limiting access to skills training, entrepreneurship support and digital services outside the capital.

The report says funding remains another key issue. While Ethiopia increased its digital and ICT allocation from about $250 million in 2020 to $500 million in 2024, other countries rely heavily on donor-funded or project-based financing, raising concerns about long-term sustainability.

It recommends increased and ring-fenced government funding for rural connectivity, digital literacy and innovation, alongside greater transparency in the management of Universal Access Funds.

The study also calls for blended financing involving governments, private companies and development partners, as well as community networks and low-cost technologies to extend affordable connectivity to underserved areas.

The report concludes that expanding infrastructure alone will not close Africa’s digital divide unless connectivity is accompanied by affordable access, skills, relevant content and coordinated investment.