As the uptake of fourth-generation (4G) communications technologies continues to grow on the African continent, along with early adoption of fifth-generation (5G) technology in some countries, technology companies agree that more enabling regulation is required if Africa is to realise universal connectivity or widescale 5G rollouts.

Consultancy and research company Balancing Act CEO Russell Southwood noted during a panel discussion at the Africa Tech Festival, which is being hosted from November 7 to 11 in Cape Town, that mobile technology, such as digital payments, or “mobile money”, and the Internet have had a profound impact on Africa’s development, but greater job creation and economic growth can be unlocked if regulators were to ease up on their intervention.

Connectivity and technology group Liquid Intelligent Technologies CEO Nic Rudnick agreed, explaining that many telecommunications and technology companies, particularly in the mobile technology space, emerged when the information, technology and communication (ICT) industry was unregulated in the 1990s and early 2000s.

He said companies thrived in a free and open market, but that regulators have since become more assertive institutions that, while serving many countries positively, also pose an impediment in other countries – particularly with the rollout of new networks.

Mobile money hub MFS Africa executive director Nika Naghavi noted that more than 60% of all mobile money accounts globally are in Africa, and that the technology has ensured financial inclusion for millions of people. She highlighted that the demand for digital transactions increased significantly during the height of Covid-19; however, Africa was still some way from on-boarding third-party services seamlessly.

She mentioned that many African countries’ regulators impose lengthy due diligence processes for technical partnerships to form and offer more sophisticated financial services on the continent.

Naghavi hoped that, in ten years’ time, Africans would become creators through faster broadband and digital education, after becoming connected consumers for the most part in the last decade.

Impact investment firm Convergence Partners founder Andile Ngcaba strongly suggested the role of the State in terms of regulation should change entirely to be aligned with an enablement approach. He said the regulation model may have worked at some point in the industry, however, it would prove counterproductive in the digital era.

He recommended that regulators transform into “digital enabling organisations” instead.

Connectivity solutions provider MainOne CEO Funke Opeke said the biggest influencer of tele-density and ICT infrastructure had been liberalisation and political will on the continent. However, she pointed out that regulation had not quite kept up with what was required to continue driving development.

“In many countries and cities, development has slowed down or become more concentrated in urban areas only. Unless governments create the enabling environment in our markets, it is tough to deploy the kind of capital that is necessary for development.”

She added that once these policies were in place, there remained work to be done on digital literacy, bringing device costs down and getting more digital infrastructure in place, if Africa’s informal sector was to become digitally connected.

Opeke believes there is much opportunity for more creativity and productivity to be unleashed in Africa.

Liquid Intelligent Technologies hosted Engineering News in Cape Town for Africa Tech Festival 2022.