Altman Solon is the largest global TMT consulting firm with expertise in telecommunications consulting. In this insight, we explore opportunities for legacy African telcos to take the lead in digital infrastructure transformation.
Why Africa? Why now?
Africa stands at a pivotal moment in the global digital infrastructure race. While developed markets debate incremental network expansion, most African markets face a more transformative question: can they leapfrog legacy models to capture value in the AI-driven economy?
Three forces are converging to define this next phase:
- Declining legacy telecom revenues.
- Surging demand for AI computing and data services results in outsized infrastructure requirements.
- The rise of platform-based business models.
Together, they present a once-in-a-generation opportunity for those ready to rethink infrastructure and business models for an AI-powered future.
Carriers are already adapting. Liquid Intelligent Technologies is building a pan-African fiber and data center network; Airtel Africa has freed up capital through asset monetization; and Telecom Egypt has turned geography into a competitive edge as a key transit hub between continents. Yet despite these gains, global players still dominate higher-value digital services like cloud and communications platform as-a-service (CPaaS), a gap that local players are increasingly looking to close.
When geography becomes destiny: Africa’s CPaaS challenge
Geography has always shaped Africa’s telecom landscape, but today, it defines survival. As voice and SMS revenues decline, operators must fund next-generation infrastructure with fewer traditional sources of income.
While players like Telecom Egypt and Liquid Intelligent Technologies have leveraged their geographical positions to build regional leadership, Africa’s CPaaS market remains fragmented. Global providers such as Twilio, Sinch, and Infobip control over half the market, despite having a limited physical presence. The opportunity for African players lies in integrating their network strengths with digital service innovation to build scale across borders.
Platform players and the pan-African opportunity
Africa’s diversity and fragmentation create challenges, but also fertile ground for platform-based growth. No pan-African communications platform has yet emerged, though demand spans sectors from financial inclusion to agriculture and healthcare.
Sub-Saharan Africa already leads globally in mobile money usage. The growth of platforms like Kenya’s DigiFarm (serving over 1 million farmers) and South Africa’s telehealth platform Vula Medical shows how digital ecosystems can address local needs at scale. The next step is expansion: building platforms that combine local knowledge with regional integration to compete against global incumbents and capture Africa’s growing enterprise and consumer markets.
Overcoming infrastructure constraints: power and connectivity
Africa’s power paradox defines both its challenges and potential. Sub-Saharan Africa, excluding South Africa, produces just 90 gigawatts of electricity—less than Spain—but has some of the world’s richest renewable resources. Markets like Kenya, where 90% of electricity comes from renewables, show how Africa could lead in developing the world’s greenest AI infrastructure.
Connectivity remains uneven. Despite a 50-fold increase in international bandwidth since 2010, Africa still accounts for only 1% of global data center capacity. Sparse terrestrial fiber and complex cross-border routes slow intra-African data movement, sometimes routing traffic through Europe. Solving these bottlenecks will require not just investment, but policy harmonization and collaboration across 54 national markets.
The window of opportunity
Africa’s digital transformation is inevitable, but who leads it remains to be seen. Hyperscalers like Google, Meta, and Microsoft are investing heavily, but they rely on local partners to navigate complex operating environments.
For investors and operators with the vision to act now, Africa’s infrastructure super cycle represents not only a compelling growth story but a blueprint for long-term economic transformation.
