Chart of the Week

Namibia has one of the slowest internet download speeds in the world, ranking 143rd out of 152 countries with a median download speed of 13.72 Mbps, according to the '25 Speedtest Global Index by Ookla.Namibia has long suffered from poor internet infrastructure, internet quality, e-security, and e-governance, ranking in the bottom 20% worldwide in these components in the '24 Digital Quality of Life Index conducted by Surfshark. Namibia's strongest component was internet affordability, although this metric considers the work time required based on the average wage to afford the cheapest mobile internet - thus, this is skewed by Namibia's very high inequality.Meanwhile, Huawei's '24 Digitalisation Index, which assesses the level of ICT maturity and economic development, ranked Namibia 75th out of 77 countries assessed.According to the '23 Census, only 15.0% of Namibian households have access to home fixed internet connectivity, with the proportion among rural households just 5.1%. Due to Namibia's low population density and the distance of rural areas from urban localities, providing high-speed broadband internet has proved challenging for current operators.Concerns remain around the lack of competition in the sector. In MTC's '24 Annual Report, it is stated that the company services an estimated 82% mobile market share in Namibia.Currently, Starlink operates in 18 African countries, with Nigeria being the first to launch in January '23. Where data is available (12 countries), the cheapest Starlink package is more affordable than the cheapest non-Starlink unlimited fixed internet package in five countries - roughly half the price in Ghana and Kenya, 22% cheaper in Cape Verde, 14% cheaper in Mozambique, and more than 20 times cheaper in Zimbabwe.Starlink packages are currently sold out in six African countries due to exceptionally high demand. In Zimbabwe, terminals sold out in October, less than two months after receiving permission to operate. Its strong demand in other African countries and subsequent impacts suggest that a more competitive ICT industry can drive costs down and improve availability in Namibia’s distant rural areas.Setting aside the current controversy surrounding Elon Musk, the economic impacts are clear - a competitive internet environment benefits a significant number of struggling households, while also generating strong interlinkages with the broader economy through multiplier effects, such as improved employment opportunities. This is particularly crucial in Namibia’s most rural regions, where unemployment is highest, and internet access is lowest.In the ‘24/’25 Mid-Year Budget, the Ministry of Finance forecasts the sector to grow at an average annual rate of just 2.3% over the next four years - the slowest among all broad sectors. Furthermore, MTC reported unforeseen delays in expansion projects in '24, with a shift in focus towards hiring additional personnel.

Chart of the Week

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Namibian Sun 2025-02-24

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Chart of the Week

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Namibian Sun 2025-02-24

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