Ict/Telecom
Nigeria, South Africa, Kenya Exchange 80% Internet Traffic Locally
Nigeria, South Africa and Kenya exchanged between 70 and 80 per cent of their Internet traffic locally and are the most developed Internet ecosystems in Africa.
Internet Society, which disclosed this in its “Moving towards an interconnected Africa: the 80/20 Initiative,” report, said that the number of African IXPs has increased by 58 per cent over the past eight years, from 19 in 2012 to 46 in 2020.
An IXP is a technical infrastructure where multiple networks, including Internet service providers, mobile operators, enterprise networks, research and education networks, e-Government services, and content delivery networks (CDNs) come together to connect and exchange Internet traffic.
IXPs enable the local exchange of Internet traffic instead of using expensive international transit routes. This not only makes Internet access much more affordable but also improves the quality of access by providing more direct network connections. Access speeds for content can be up to 10 times faster with an IXP because traffic is routed locally versus international transit routes.
The report, which examined the Internet ecosystem in Africa, observed that more than half of the countries in Africa have an IXP; six countries have more than one, stressing that IXPs provide significant savings by localising Internet traffic.
Internet Society disclosed that a network could save up to $240,000 per year by connecting to a local IXP. It added that the presence of content delivery networks has increased significantly and the amount of locally available content and demand for content hosting has increased.
The new report expanded on a 2020 analysis of IXP growth in Kenya and Nigeria and provided an overview of the evolution of Internet interconnection on the continent by examining a country in each of the six sub-regions: Angola (Southern Africa), Burkina Faso (Western Africa), Democratic Republic of Congo (Central Africa), Egypt (Northern Africa), Mauritius (Indian Ocean), and Rwanda (Eastern Africa).
Africa Regional Vice President for the Internet Society, Dawit Bekele, said: “Thanks to the continued work with partners over the years, we have many more sustainable IXPs that exchange a considerable amount of Internet traffic in Africa. But there’s still work to do to ensure that more Internet traffic is exchanged on the continent.”
Bekele added that a key success factor for IXPs is that governments understand the value that Internet infrastructure provides, which encourages the adoption of policies and regulations that enable Internet ecosystems to thrive.
While noting that Internet Exchange Points are critical to improving internet access and lowering connectivity costs in Africa, the report outlines the state of Internet interconnection in Africa and the critical role Internet Exchange Points (IXP) play in improving access and lowering costs.
There is an urgent need to increase Internet access across the continent, especially in the wake of the coronavirus pandemic.
According to the United Nations Economic Commission for Africa, fewer than one in five households have Internet access. Reliable and affordable Internet access also fuels economic growth. A recent study estimates that the Internet economy has the potential to contribute up to $180 billion to Africa’s gross domestic product (GDP) by 2025.
The Managing Director, Shell Nigeria Exploration and Company Limited (SNEPCo), Elohor Aiboni, said Bonga, Nigeria’s first deep-water asset, has recorded major milestones, due to effective leadership, cutting-edge technology, continuous improvement and collaboration with stakeholders.
She noted that since coming on stream in November 2005, Bonga has maintained a track record of production that saw it achieve one-billion-barrel export on February 13, last year.
In her presentation, titled “The Bonga Journey to a Billion Barrels”, at the ongoing 2024 Offshore Technology Conference in Houston, Texas, United States, Aiboni, said: “SNEPCo is grateful for the contributions of all the parties to the Bonga story and we can all be proud of the milestones.
“Bonga has been consistent. In 2014, nine years after coming onstream, it achieved half a billion barrels of crude and doubled it in 2023. We have worked relentlessly to ensure excellent asset management, project and wells delivery and deployment of technology and innovations in our operations”.
According to her, these factors, “coupled with the supportive partnership of the Nigerian National Petroleum Company Limited and our co-venturers – TotalEnergies, EP Nigeria Limited; Nigerian Agip Exploration; and Esso Exploration and Production Nigeria Limited, make Bonga stand out as a world-class investment case”.
She continued that, “SNEPCo also enjoyed the support of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Content Development and Monitoring Board (NCDMB) in the success of Bonga operations”.
Aiboni also listed the challenges of keeping the Bonga Floating Production, Storage and Offloading vessel full as the asset ages and dealing with unexpected developments with subsea wells and equipment.
She said: “SNEPCo responded with a campaign of operational excellence, which among other initiatives, led to the creation of a programme known as the Bonga Business Improvement Plan that continually reviews and identifies improvement initiatives and drives sustainability in operations and upskilling of staff.
“The Bonga success story has been led by Nigerians who have been managing directors of SNEPCo since it was established in 1993, in a deliberate policy by Shell to develop indigenous manpower for deep-water operations in Nigeria.
“Today, some 97percent of the SNEPCo workforce is Nigerian and overall, Bonga has helped to create a new generation of Nigerian deep-water professionals.
“Our vision at SNEPCo remains to be the best deep-water business, powering growth and achieving net zero emissions in line with Shell’s Powering Progress strategy”.
Banks’ borrowings from the Central Bank of Nigeria (CBN) fell month-on-month, (MoM) by 44 percent to N12.16 trillion in April from N21.7 trillion in March.
Analysis of latest data from the CBN shows that the 44percent drop represents the first MoM decline in banks borrowing from since January when it increased by 268.7 percent to N3.6 trillion from N976.29 billion in December 2023.
However, further analysis showed that banks’ deposits in the CBN SDF grew MoM by 118.4 percent to N428.97 billion in April from N196.37 billion in March 2024.
Banks make use of the SLF to access liquidity to run their day-to-day business operations while the Standing Deposit Facility window (SDF) on the other hand, is an overnight deposit facility that allows banks to lodge excess liquidity (money) with the CBN and earn interest.
The decline in banks’ borrowing from SLF may reflect an increase in banking system liquidity and also the decision of the apex bank last year to remove the limit on the remunerable daily placements by banks at the SDF.
According to the CBN Governor, Mr. Olayemi Cardoso, the CBN removed the cap on the remunerable SDF to increase activity in the SDF window and manage liquidity.
A Financial technology expert, Olatunji Akinrinola, has highlighted the exponential growth of the FinTech industry, which according to him, was driven by technological advancements.
Akinrinola made this assertion in a press release recently, where he stressed that the role of technology in driving this exponential growth in the FinTech sector was very outstanding.
According to him, Technology has revolutionised the way financial services are delivered, making them more accessible, efficient, and inclusive.
“Through innovations such as mobile banking, digital payments, and blockchain technology, FinTech companies have been able to reach a larger population and provided them with access to financial services”, he stated.
Akinrinola emphasised the role of technology in enabling financial inclusion, adding: “Technology has democratised access to financial services, particularly in regions with limited banking infrastructure.
“Mobile money platforms and digital wallets have empowered individuals to conduct financial transactions conveniently and securely, without the need for traditional banking services”.
He also underscored the role of Artificial Intelligence (AI) and data analytics in driving innovation within the FinTech industry, noting: “AI-powered algorithms and predictive analytics have revolutionised risk assessment, fraud detection, and customer personalisation in financial services.
“These technologies enable FinTech companies to provide tailored solutions and mitigate risks more effectively, ultimately enhancing the overall customer experience”.
Akinrinola stressed the importance of regulatory frameworks in fostering the growth of the FinTech industry.
“While technology has accelerated the growth of FinTech, it is essential to establish robust regulatory frameworks to ensure consumer protection and maintain market stability. Regulators play a crucial role in balancing innovation with risk management, thereby creating a conducive environment for the sustainable growth of the FinTech sector”, he stated.
Akinrinola underscored the role of technology in driving the exponential growth of the FinTech industry, saying, “Technology has been a game-changer for the FinTech sector, enabling innovation, expanding access to financial services, and driving economic growth.
“As technology continues to evolve, the FinTech industry will undoubtedly play a significant role in shaping the future of financial services ecosystem”.
Corlins Walter