UNDERSERVED,
HIGH GROWTH SECTORS

Paucity of fiber and sub-sea capacity juxtaposed against projected demographic and economic growth portends massive supply/demand imbalance, increasing capacity utilization and appreciating valuation for data transmission assets.

Africa currently has one of the lowest densities of data center capacity in the world; enterprise data center services and adoption by corporate clients is still at an early stage. Hyperscalers such as Facebook, Amazon, Google and Microsoft are the primary anchor customers and are planning significant investments in data centers and supporting infrastructure to build a strong African presence. Data sovereignty and the nascent digitization of government, health and financial data create attractive demand extension opportunities.

Upward trends in mobile, data and mobile financial service ARPUs, as well as rapid growth in mobile and smartphone penetrations from current levels will support rising values for tower portfolios and spectrum licenses in the African market.

Fast growing, youthful populations with some of the lowest mobile penetration rates in the world support strong subscriber growth and increasing interest in streaming content and services, such as e-sports, interactive e-gaming and mobile money underpin rising levels of ARPU and EBITDA as infrastructure platforms scale and broadband access points develop.