High spectrum costs squeeze African telecom investment and digital growth

Africa's mobile networks have grown substantially in recent years, yet the continent lags behind in internet adoption and network quality. A new GSMA report highlights high spectrum costs as a major obstacle to investment and consumer empowerment. African operators pay more for less spectrum compared to the rest of the world, with spectrum costs consuming 0.82% of mobile operators' revenue per 100 MHz in Africa, compared to 0.66% globally.

Operators also hold about 24% less spectrum below 7 GHz than their global counterparts. The issue extends beyond pricing and availability to the duration of spectrum licenses, which are shorter in Africa. Lowering spectrum fees alone does not guarantee better connectivity, as improved access must be tied to measurable enhancements in network quality and internet adoption, especially in underserved communities.

While mobile broadband coverage has risen to 92% in 2025, only 28% of Africans use mobile internet on their own devices, compared to 66% globally. This usage gap highlights two main challenges: extending coverage to reach more people and making internet access affordable and useful for those already covered. Spectrum pricing affects operators' capacity to invest in network expansion and quality.

African operators face higher per-unit spectrum costs, which are about 24% higher when adjusted for the amount of spectrum held and operator revenues. As mobile data traffic is projected to grow by 160% in Africa between 2025 and 2030, addressing the spectrum and investment challenges is critical to avoid congestion and maintain service quality.

The report cites Egypt and Tanzania as examples of how spectrum policy can impact investment and growth.