Africa Interconnection Report 2021
Africa Interconnection Report 2021
Africa Interconnection Report 2021
INTERCONNECTION
REPORT
ANALYSIS OF SUB-SAHARAN AFRICA’S CLOUD & DATA CENTRE ECOSYSTEM
CONTENTS
INTRODUCTION 2 OVERVIEW OF
CLOUD SERVICES 19
THE CURRENT CLOUD
SERVICES LANDSCAPE
METHODOLOGY 3 IN SUB-SAHARAN AFRICA 20
UNDERLYING CLOUD
SERVICES DYNAMICS 21
EXECUTIVE SUMMARY 4
FACTORS ENCOURAGING
THE DATA CENTRES AND CLOUD
SERVICES ECOSYSTEM 8 INTERCONNECTION
OPPORTUNITIES IN
SUB-SAHARAN AFRICA 30
THE GROWING NEED FOR
MAPPING SUB-SAHARAN
LOCAL INTERCONNECTION 31
AFRICA’S DATA CENTRES 10
CONSOLE CONNECT IN
EXISTING AND PLANNED
SUB-SAHARAN AFRICA 32
GROWTH OF CARRIER-NEUTRAL
DATA CENTRES 11
INTERNATIONAL PRESENCE
IN IXPS AND CARRIER-NEUTRAL
DATA CENTRES 14
FUTURE DISTRIBUTION OF
CARRIER-NEUTRAL DATA
CENTRES IN THE REGION 16
1. All country markets chosen have proven Private cloud: It is defined as computing
data centre and cloud services potential. services offered either over the internet or a
private internal network and to selected users
2. Our own broader data gathering and only.
reports support the findings and insights
offered. Public cloud: It is a type of computing in which
a service provider makes resources available
3. All those interviewed were CEOs, Managing to companies and the public via the internet.
Directors or Heads responsible for data Some public cloud providers offer resources
centres and/or cloud service activities. for free, while clients pay for other resources by
subscription or a pay-per-usage model.
There were many, many useful insights in
these conversations but as ever, the opinions Tiers II, III and IV: The different service level
and findings expressed in this study are entirely provisions of a data centre provided by the
from Balancing Act (except for Section 5 of Uptime Institute.
the report).
Hybrid implementation
Although migration to cloud applications is
accelerating in key markets in Sub-Saharan
Africa, more cautious companies are relying on
platform technologies before making everything
cloud based. This means that enterprise
customers may choose to take parts of their
services to the cloud, such as Know Your
Customer (KYC) implementations.
On security, companies may feel more An example taken from India illustrates how
confident that an external provider can handle this might happen to the payments ecosystem
all of the business of security, such as automatic for telecoms. Vodafone Idea, a player in India’s
back-up, intrusion detection, SSL encryption hotly contested telecoms space, is moving to a
and vulnerability tests. The estimated number cloud-native charging solution delivered using
of security professionals on the continent its own private cloud. The pilot is managing over
(around 10,000) is about the same size as, for 4 million live subscribers and serves up more
example, Oracle’s security team. than 1,000 transaction units per second (TPS)
traffic for online data charging. The purpose
Over the medium-term, the advantages of cost of the pilot is a two-step process: firstly, to
savings, more efficient processes, only paying roll-out the private cloud option across India
for what you use as demand scales up and and secondly, as a step towards a public cloud
down and the ability to make service changes platform.
more quickly will begin to be more persuasive
as the first cohort of major cloud users Data sovereignty and localisation:
demonstrate that the technology works. Data centres and cloud services raise particular
challenges for regulators. For example, a
One of the key cost savings is shifting from Kenyan’s individual data might be stored in any
time spent on manual processes (in say, payroll one of a number of data centres globally, some
payments) to automating processes and being on the continent and some not.
able to understand more easily the meaning of
a company’s own data. Therefore how can national law protect
the individual from abuse in non-national
Digital disruption jurisdictions? What right does that Kenyan
Whether globally or in Sub-Saharan Africa, individual have to see the data that has been
there is an increasing level of digital disruption. collected on him or her? Data sovereignty
According to Weetracker, US$679 million was covers legislation that information which is
invested in African start-ups in the Fintech stored in the cloud is subject to the laws of the
sector in 2019. Most of this investment was country in which it is physically stored.
made in Kenya and Nigeria. There are now
significant pan-continental operators in In 2016, the European Union passed the
this space. General Data Protection Regulation (GDPR),
which had five key provisions:
Alongside the newcomers, there has been a
steady transformation in the digital offerings • Requiring the consent of subjects for data
of African banks, particularly in Nigeria. For processing
example, the country’s largest retail bank, First • Anonymising collected data to protect
Bank of Nigeria, has over one million downloads privacy
of its Android app. The same is also true for • Providing data breach notifications
Kenya’s largest retail bank KCB. • Safely handling the transfer of data across
border
The combination of start-up and existing • Requiring certain companies to appoint a
enterprise innovation is creating new data protection officer to oversee GDPR
transaction ecosystems. This migration can compliance
be seen most clearly in the financial sector
Nigeria (1475)
Kenya (1080)
Ghana (232)
Angola (200)
Existing Planned
0
Nigeria
Kenya
Cote d’Ivoire
Mozambique
Zambia
Senegal
Rwanda
Uganda
Zimbzbwe
South Africa
Ghana
Angola
Mauritius
Djbouti
DRC
Ethiopia
Alban
Africa Cloud
Airtel India Communications Amazon Broadcom
Exchange
(BW)
BICS Angola Cables Akami Alibaba Cloud Cisco
BT Aptus (TZ) Cachefly AWS SITA
Rogers Capital
China Telecom Avoxi Cloudflare G-Core Labs Technology
Services (DC in MU)
CM Telecom BTC (BW) Facebook Google Cloud Route Views
CMC Networks Canal+ Telecom Fastly Microsoft Azure The Packet House
Dialpad Congo Telecom FFG Connection Tiggee
G8 Liquid Telecom GVA Canalbox Ubuntunet
Mahanagar
Hurricane Electric I3D.net Epsilon
Telecom (MU)
IPTP Networks Mauritius Telecom Misaka Network
Layer3 Telecom OPQNet (BW) NSOne
Netnod Orange Tunisie Psychz Networks
Netovate Paratus Africa Reunicable
Orange Business
Safaricom Showmax
Services
Packet Clearing
SEACOM Tysflo
House
PCCW Global Skyband (MW) Valve
Saudi Telecom Swaziland PTC VeriSign
SG.GS Telecom Nambia
Siliconsky TNM (MW)
Swisscom Telone (ZW)
Togo Telecom
Utande (ZW)
Virtual
Technologies and
Solutions (BF)
Webmasters (MZ)
WIOCC
Existing regional
hubs
Potential regional
hubs
International
hub
EXISTING
INTERNATIONAL CROSS-BORDER FIBRE
REGIONAL ADDITIONAL COMMENTS
SUBSEA CABLES LINKS
HUBS
Existing: EASSy, LION 2, Ethiopia, South Sudan • Strong East African trading links
SEACOM, TEAMS (via Uganda) Tanzania, • Nairobi is a regional
Kenya Uganda and on- business centre
Under construction: connections to Burundi, • Nairobi Stock Exchange is the fourth
A2Africa, PEACE Rwanda, DRC (Gombe) largest on the continent
Existing: ACE,
Main One, SAT3 Gambia, Mauritania,
Senegal Mali (and on to Guin-
Under construction: ea-Bissau and Guinea)
A2Africa
POTENTIAL REGIONAL HUBS
CAR, Chad, Republic of
Existing ACE, NCSCS, SAIL,
Cameroon Congo, Equatorial Guin-
SAT3, WACS
ea (and on to Gabon)
Eritrea (planned),
Existing: SEACOM (via
Ethiopia Kenya, Somalia, South
Djibouti)
Sudan, Sudan
Existing: ACE, GLO 1,
Main One, SAT3, WACS Benin, Burkina Faso, • Ghana Stock Exchange is
Ghana
Under construction: Cote d’Ivoire, Togo the fifth largest on the continent
A2Africa
INTERNATIONAL HUB
As a regional data centre hub, Nigeria is still Furthermore, the differences between
very much a work in progress. There is no Anglophone and Francophone business areas
single company that looks like a leading player may lead to two very different regional entry
yet; the corporate market is still transitioning points. Likewise, there is a complicated set
into external data centres; and connections to of regional policy considerations in the Horn
Francophone Africa are weak (both in terms of of Africa that could lead to several countries
trade and fibre links). That said, Rack Centre has bidding to be a regional hub there.
35 carrier connections making it and MDX-i with
26 carrier connections the strongest current
contenders.
Table 3: Hyperscaler and local presence by country Source: Balancing Act (estimates)
LOCAL CLOUD
COUNTRY PRESENCE
PROVIDERS
• Microsoft
Nigeria • VMWare Cloud Provider 3-5
• Google Cloud
• AWS (Cape Town and Johannesburg)
• Google Cloud
• Huawei Cloud
South Africa • Microsoft Azure 40-50
• VMWare Cloud Provider
• Whale Cloud Services
• Teraco’s neutral cloud platform
• AWS
Kenya • Microsoft Azure 2-4
• Google Cloud
Ethiopia 2
Uganda 3
Cote d’Ivoire 1
Mozambique 2
This journey actually starts with quite a narrow The number of potential customers and rack
initial group of users. In more liberalised use strongly correlates with the size of the
communications markets, there are local telcos economy. In the bigger economies, like South
and ISPs who need a meet point function: Africa, Nigeria and Kenya, there is a larger
even with a relatively small number of players, number of racks per customer but in smaller
it makes no sense in an IP world to have countries, like Cote d’Ivoire and Ghana, there is
individual connections to all players. Later with usually only one rack per customer (or less).
smartphones, telcos needed the capacity to
service a growing number of handset apps. In some countries, the number of likely data
centre or cloud services users is relatively small
The other group of African companies in the and most are already in data centres, if not using
first wave of carrier-neutral data centre users cloud services. As one data centre operator said:
were banks, who were increasing under legal ”The economy here is not so stratified. There
obligations to have their disaster recovery are some industrial companies but there’s not
outside their own premises. enough quality of IP in their space.”
The second wave of users were multinational or Some Francophone countries like Cote d’Ivoire
multi-location companies looking for cost and seem ready for cloud services (“All realise the
operational efficiencies. This category includes importance of the cloud with the current crisis,”
a long list of potential business categories said one local ISP) but smaller countries like
including: Benin may be much slower to transition (“Local
companies don’t make many changes. It will be
• Oil and natural gas three years before it happens,” said a local ISP).
• FMCG
• Automotive
• Power distribution
• Retail
• Mining
• Fertilizers
• Betting companies
• International NGOs
• Insurance
• Conglomerates
Backup-as-a-Service 53.24%
Software-as-a-Service 42.16%
Infrastructure-as-a-Service 26.76%
Platform-as-a-Service 26.22%
Recovery-as-a-Service 20.54%
Other 0.81%
It decided to move straight from its legacy In June 2020, the bank, which uses both AWS
systems and to move its core business and Microsoft Azure, signed an agreement with
processes to the Cloud using the SAP S/4HANA Salesforce to power the Standard Bank Group
Public Cloud platform. Gadhoke said: ”In doing Digital Platform and service its ecosystem of
so, we aimed to leverage Cloud capabilities clients and partners.
to improve technical and operational agility,
enhance real-time visibility across the business, The group has more than 53,000 employees,
harmonise data, improve reporting, and enable approximately 1,200 branches and over 9,000
future growth and innovation.” ATMs on the African continent, which enable it
to deliver a complete range of services across
In order to keep costs down, it made the personal and business banking, corporate and
changeover in five and a half months. In a first investment banking and wealth management.
for Uganda, the business put its core business
systems into the cloud by the agreed deadline, In March 2019, it migrated its production
with minimal disruption to the business. The workloads, including its customer facing
company has already seen significant gains platforms and strategic core banking
in productivity and faster time to market. It applications to the cloud. It named AWS as
has greater visibility into its operations than its preferred cloud provider to enable it to
ever before, through an intuitive, unified use data analytics and machine learning, to
• Djibouti City
• Accra
• Abidjan
• Nairobi
• Maquto
• Lagos
• Dakar
• Cape Town
• Johannesburg (2 locations)
• Dar es Salaam
• Kampala
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