How Djibouti became the internet center of the region

Djibouti’s status as the sole African nation with an overseas military base maintained by China appears to have delivered additional advantages.

Djibouti has been transformed into the digital center of the region as a result of substantial Chinese investment in information and communication technology (ICT). This has surpassed the economic powerhouses of Kenya and Ethiopia.

A recent report from the World Bank references a study conducted by the International Telecommunication Union (ITU) that indicates that Djibouti had the highest internet connectivity in the region at the end of last year, with 69 percent of the population being online.

With a population of approximately 1.1 million, Djibouti has a connectivity rate that exceeds the global average of 65 percent, and it is significantly higher than Kenya’s 29 percent and Ethiopia’s 17 percent.

Djibouti’s ICT infrastructure has been substantially constructed by China, according to the report.

The World Bank report stated that China is a significant contributor to the financing of Djibouti’s communications infrastructure, as Djibouti Telecom has partnerships with Chinese companies like Huawei.

Huawei is at the vanguard of several transformative technologies of the Fourth Industrial Revolution, including artificial intelligence and 5G, which are both proven to be imperative in contemporary warfare.

The World Bank’s study, “Leveraging Private Sector Investment in Digital Communications Infrastructure in Eastern Africa,” evaluated the preparedness of 11 countries in Eastern Africa to attract foreign investment.

Strategically situated at the intersection of the Red Sea, the Gulf of Eden, and the Indian Ocean on the Europe-Asia maritime route, Djibouti is emerging as a “theatre of great power competition” between the United States and China, two of the most powerful nations.

The United States, which maintains a military base approximately 10 kilometers from China’s, has also allocated funds to Djibouti’s digital communications infrastructure. The state-owned service provider, Djibouti Telecom, has a substantial joint venture with BringCom, a communications technology provider based in the United States, according to the World Bank document.

IP connectivity and international backhaul services for aeronautical and maritime satellite services are provided by the joint venture, Djibouti Teleport. However, it is China, which in 2017, established a military base in the port nation at the entrance of the Red Sea, that is playing an extremely significant role in the transformation of Djibouti into a digital center.

Doctor Oscar Otele, a researcher on China-Africa relations and a lecturer at the University of Nairobi, suggests that China’s substantial investment in Djibouti’s ICT infrastructure may be attributed to the significance the world’s second-largest economy places on the military facility it maintains in the country.

Djibouti’s undersea fiber-optic cables, which are installed on the ocean floor and utilized to transmit data between continents, are dependent on the country’s strategic location. These fibre optic cables enable individuals to communicate via the internet.

The World Bank report indicates that Djibouti was hosting nine landing sites as of 2023, with additional landing points anticipated.

Ben Roberts, CEO of Kenya Data Networks, asserts that Djibouti is potentially the most interconnected nation in the world due to the submarine cables that connect it to Africa and Europe.

Djibouti has adopted the objective of establishing itself as a global digital center.

“Our investment in submarine cables has allowed us to establish a foundation upon which we can then capitalize.” A digital economy can be established in the country through the establishment of data centers and start-ups. In an interview with African Business magazine, Mohamed Ahmed Mohamed, director of international business at Djibouti Telecom, expressed his belief that traffic will experience a significant increase in the future.

However, despite its status as the largest fiber-optic center in the region, Djibouti’s services are less affordable than those in Ethiopia and Kenya, despite its relatively well-connected status. This, according to the World Bank, is indicative of a dearth of competition in the domestic sector.

It is imperative that we enhance the cost of electricity in order to enhance our competitiveness. The current rate is 23 cents per kWh, which is substantial, according to Mr. Mohamed in an interview with African Business.

The World Bank stated that the proportion of the population that uses the internet is marginally higher than the global average, indicating that the population has a high demand for internet access.

The veracity of the connectivity figures has been a subject of debate among some observers, who have emphasized that the data is sourced from an impartial regulator.

A consultant who contributed to the ITU report observed that the government’s figures were inconsistent with numerous prior studies, the majority of which did not identify Djibouti as a “high flyer in terms of internet penetration.”

On the basis of a population of 1.1 million, the consultant estimated that 365,000 individuals in Djibouti were using LTE (Long-Term Evolution), a fourth-generation (4G) wireless standard that enhances the speed and capacity of mobile phones and other cellular devices.

This is a matter of the telecom regulator reporting to the ITU, according to the consultant.

There is a high likelihood that the figures will be manipulated, as they are derived from a state-owned monopoly, Roberts said.

But experts suggest that the high internet connectivity in Djibouti may also be attributed to the country’s high urban population concentration.

The World Bank investigation revealed that Kenya and Ethiopia had much lower internet costs than Djibouti.

By the conclusion of 2023, the investigation determined that the average Kenyan expended 1.97 percent of their aggregate national income per capita on 2GB of data.

Kenya was succeeded by Ethiopia (2.42 percent), Rwanda (2.46 percent), Somalia (5.11 percent), and Djibouti (6.58 percent).

Madagascar, Malawi, Mozambique, and Burundi had respective rates of 8.78 percent, 8.95 percent, 9.04 percent, and 12.59 percent.

2 GB of mobile data consumes 32.5 percent of the average monthly income of a typical consumer in South Sudan.