How the 2Africa cable system will empower inclusive economies

How the 2Africa cable system will empower inclusive economies

Development, as a transformative journey from a lower to a more advanced state, is fundamentally supported by robust physical infrastructures that facilitate effective mechanisms, policies, and processes. Yet, this journey begins with having the right data, which paves the way for informed decision-making.

Meaningful progress in the technology sector hinges on the uniformity in the quality and flow of information. This necessitates collaboration among the government, the principal driver of progress; development stakeholders, who contribute to advancing the development agenda; and the public, the ultimate beneficiaries of these advancements.

Recently, Tanzania experienced an internet outage due to a cut in the submarine cable that supports internet connectivity across the country and neighbouring regions. This incident severely impacted Tanzania, highlighting the critical need for resilient infrastructure. Businesses were disrupted, and customers faced significant frustration as internet speeds slowed to a crawl. Such disruptions can become a relic of the past with the activation of the 2Africa subsea cable landing station, owned and operated by Airtel Tanzania.

The 2Africa cable, spanning 45,000 kilometres and connecting 43 locations across Asia, Africa, and Europe, carrying a capacity ten times larger than the previous one. This marks a substantial increase in Tanzania’s submarine cable capacity, heralding a new era of digital resilience and connectivity.

The activation of the 2Africa submarine cable system in Tanzania is a pivotal step towards achieving data inclusion in the country. This development aligns with the sixth phase government’s ongoing efforts to create a digitally inclusive economy. Access to digital data and its utilization are essential for Africa’s progress towards the Sustainable Development Goals and Agenda 2063.

The 2Africa cable landing station brings significant advantages to Tanzania’s digital landscape. It enhances the internet experience through local hosting and content transfer, ensuring superior 4G and 5G internet speeds for consumers. This sets the stage for growth among digital entrepreneurs and enthusiasts, fostering a vibrant digital ecosystem.

Beyond positioning Tanzania as a digitally resilient country, the cable system will expedite the digitization of government services and to improve public service provision, trade, and security. Superior internet connectivity will enable these advancements, with content hosted and transferred locally at high speeds.

Our commitment to addressing Tanzania’s digital needs is evident through the provision of cutting-edge fibre-optic solutions. These solutions empower businesses, education, healthcare, and communities to meet the surging demand for data across various sectors.

The 2Africa Submarine Cable positions Tanzania as a global digital gateway, fostering economic opportunities and technological advancements to meet current and future digital industry demands. This initiative will significantly enhance internet accessibility across urban and rural areas, supporting Tanzania’s digital development goals.

In addition to meeting the increasing demand for data across sectors, the activation of the cable system will play a vital role in enabling the Ministry of Information, Communication, and Information Technology to supervise the formation of a digital system to support e-commerce in the country. This investment complements the ministry’s objective for 2024/25 to construct an artificial intelligence laboratory and state-of-the-art data centres, as outlined by ICT Minister Honourable Nape Nnauye.

Internally, this level of impact showcases the tremendous opportunities the cable system presents to Tanzania’s government. The technology will support a more mature e-government and e-commerce ecosystem, creating new paths for revenue collection and building high-capacity data centres.

Currently, we are collaborating with technology companies to enable their capacities through the landing station. The 2Africa cable system presents Tanzania with opportunities for significant economic investments as hyperscalers such as Google, Amazon, Meta and Netflix move their capabilities, content, and infrastructure to Africa.

Our commitment to closing the digital divide in Tanzania and supporting the government’s vision to open the world to Tanzania through technology remains steadfast. With the cable system already operational and its potential impact evident, we call upon other stakeholders to partake in the advantages brought forth by this milestone. Together, we can drive inclusive economic growth through technology, aligning with Tanzania’s development vision for 2050.

Dinesh Balsingh is the Managing Director of Airtel Tanzania

Original Media Source

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Britam half-year net profit hits Sh2bn on higher investment income
Tanzania Foreign Investment News
Chief Editor

Britam half-year net profit hits Sh2bn on higher investment income

Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.

The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.

“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.

“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”

The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.

Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.

The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.

Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.

The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.

Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.

“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.

Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.

Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.

CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.

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