By Chinenye Anuforo
Persistent internet outages linked to fragile submarine cable infrastructure are increasing the cost of capital for West Africa’s digital sector, the Executive Secretary of the West African Telecommunications Regulators Assembly (WATRA), Aliyu Aboki, has said.
Aboki, who was at the International Submarine Cable Resilience Summit 2026 in Porto, warned that weak resilience in connectivity systems is now being factored into investment decisions, making it more expensive to finance digital infrastructure and technology-driven businesses across the region.
He noted that investors and financiers are increasingly pricing in the risks associated with unreliable internet access, leading to higher risk premiums and stricter financing conditions.
According to him, resilience has become a critical factor in determining how capital flows into the digital economy, stressing that where infrastructure is vulnerable to disruption, it is treated as high risk.
The warning follows the March 2024 submarine cable disruptions along the West African coast, which led to widespread connectivity challenges across several countries. The outages disrupted banking operations, slowed digital transactions, and affected businesses dependent on cloud services.
In some cases, internet traffic dropped by more than 50 per cent, while service quality deteriorated significantly, exposing the economic consequences of weak infrastructure.
West Africa’s digital economy, estimated to generate between $100 billion and $150 billion annually, has been expanding rapidly, driven by fintech, e-commerce, and increased mobile broadband penetration. However, Aboki cautioned that the sector’s growth could be undermined if infrastructure vulnerabilities are not urgently addressed.
Despite being served by major submarine cable systems such as WACS, ACE, and MainOne, the region remains exposed due to limited route diversity and overlapping infrastructure, which increases the risk of simultaneous disruptions.
He further identified fragmented regulatory frameworks across West African countries as a key challenge, noting that inconsistent permitting processes, delays in emergency response, and weak coordination often prolong outages.
These factors, he said, introduce uncertainty into the market and contribute directly to higher financing costs.
Aboki also highlighted the high cost of submarine cable repairs in the region, stating that a single repair operation can cost between $1.5 million and $2 million, rising to as much as $8 million in more complex cases. The limited availability of specialised repair vessels in Africa further extends restoration timelines.
He called for stronger regional coordination through WATRA to address these challenges, emphasising the need for harmonised regulations, improved cable protection, and faster response mechanisms.
According to him, embedding resilience into infrastructure design and policy frameworks will not only reduce downtime but also improve investor confidence and lower the cost of capital.
He warned that the impact of unreliable connectivity extends beyond large corporations, affecting small businesses, traders, and individuals who depend on digital platforms for their daily operations.
“For many in West Africa, disruptions translate directly into lost income and reduced economic activity,” he said.
Aboki described the situation as a critical turning point for the region, stressing that internet outages are no longer just a technical issue but a financial risk with far-reaching economic implications.
He said addressing these vulnerabilities is essential to sustaining growth and unlocking the full potential of West Africa’s digital economy.
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