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    High Cost of Data In Africa Hindering Digital Innovation

    Jimmy
    By Jimmy Mbogoh
    - September 18, 2018
    - September 18, 2018
    African Wall StreetKenya Business news
    High Cost of Data In Africa Hindering Digital Innovation

    East African countries continue to enjoy the cheapest data even as other African countries struggle with high data cost.

    The region currently enjoy 1 Gigabyte of data for below $10 with the lowest at only $3.35 being Kenya while the highest being Uganda and Ethiopia at $7.10 and $5.99 for the same amount.

    A report by Eco Bank shows that Equatorial Guinea has the highest data tariff rates, at an average of $35.47 for 1 GB of data which is way above the $5 monthly income to buy data.

    ‘’The sobering reality is that Africa has the most expensive mobile data, both in real and income-relative terms, in the world. At a regional level, East Africa has the most affordable mobile data,’’ reads the report.

    It continues to show that the average cost for 1GB in Ethiopia, Tanzania, Burundi, Kenya and Rwanda lies below Africa’s relatively expensive median of US$7.04.

    ‘’In contrast, the oil-rich CEMAC countries are far pricier. Equatorial Guinea’s average cost of US$35.47 is Africa’s most expensive gigabyte. However, income levels make a big difference,’’ it continues.

    According to the report the variations in the cost and access to mobile data have a huge impact on a country’s ability to spread digital innovation, from mobile banking to pay-as-you-go solar energy.

    Two of Africa’s leading tech hubs – Nigeria and Kenya – both have relatively cheap mobile data, while other countries with emerging tech ecosystems – Rwanda, Ghana, Senegal, Tanzania and Cameroon – are also on the cheaper end of the pricing spectrum

    The report comes at a time when telecommunication service providers in Kenya are reviewing their tariff, in an effort to woo more customers in the data space.

    Kenya remains one of East Africa’s cheapest data center after Rwanda closely followed by neighboring Ethiopia and Tanzania.

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