Assessing the impact of Universal Service Funds in expanding African internet access

During the late 2000s, the idea that telecoms services should be accessible to the widest number of people at affordable prices started to take root in Africa. The mechanism designed to ensure this goal would become a reality was the Universal Service Fund (USF). By 2013, Africa had over 20 USFs and most recent data indicates that of the 54 countries on the continent, 51 have either introduced or are in the process of introducing USF programs. Now that a decade of USF activity has passed - it’s fair to take stock and try to assess how impactful these programs have been and continue to be presently…

A GSMA survey and report on Universal Service Fund activity in Africa informs most of our coverage. The survey assessed 40 (of Africa’s 51) countries with USF programs in order to better understand how the funds operate, where the majority of their money comes from, the progress being made in and out of telecoms along with the challenges USFs are facing thus far.

The scope of the problem being solved by Universal Service Funds

In the context of Africa, the problem to be solved was (and still is) significant. Presently, the continent still has the widest coverage gap of any region globally and at the end of 2022 - 72% of people in Africa still did not have access to mobile internet. GSMA defines the unconnected in two ways; 1) those who live outside of areas covered by mobile broadband networks (the coverage gap) and 2) those who live within areas covered by mobile broadband networks but do not yet subscribe to mobile broadband services (the usage gap).

Service provider and USF efforts have meant that the coverage gap has been closing - from 56% in 2012, the coverage gap went down to 13% at the end of 2022 - with an estimated 200 million people living in areas not covered by a mobile broadband network.