MTN Group subsidiary Bayobab eyes East Africa in push to drive earnings

Bayobab Kenya, a subsidiary of the MTN Group, recently completed a significant milestone in the ICT sector with the launch of a new fiber optic cable connecting Mombasa to Malaba. This $13 million investment is set to revolutionize internet connectivity not only in Kenya but also in the neighboring countries, providing a much-needed lifeline for landlocked nations in East Africa. The project is poised to drive earnings from the data business and propel the region into the digital age. Sylvia Anampiu, Managing Director of Bayobab Kenya, spoke to CNBC Africa to shed light on the impact of this development. Anampiu emphasized the importance of connectivity as the foundation of economies worldwide, stressing its critical role in fostering growth and innovation in East Africa. With this new cable, countries like Uganda, South Sudan, and Rwanda will benefit from improved redundancy and fewer interruptions to their businesses, ultimately empowering their people and driving economic progress. An estimated $13 million was invested in the infrastructure necessary for the cable, indicating a significant commitment to expanding access and enhancing digital connectivity in the region. When questioned about the potential impact on the digital economy, Anampiu highlighted the vast potential for job creation and economic empowerment. Africa's young and tech-savvy population stands to benefit greatly from increased connectivity, with opportunities for entrepreneurship and online income generation expanding rapidly. Anampiu emphasized the transformative power of the digital economy in creating employment opportunities, reducing insecurity, and driving technological innovation across the continent. Despite facing challenges such as deployment costs and rising competition, particularly from players like Starlink, Bayobab remains committed to its vision of connecting the unconnected. Anampiu expressed a positive outlook on competition, viewing it as a driver of growth and innovation in the ICT space. Looking ahead, Bayobab Kenya has ambitious plans for regional expansion, aiming to establish a presence in South Africa, Uganda, and Nigeria. The company also intends to expand further into Ghana, Cote d'Ivoire, CAR, Chad, DRC, and beyond, solidifying its position as a key player in enhancing connectivity and building redundant terrestrial routes. As the company continues on its journey to interconnect the continent and ensure reliable connectivity, it remains poised to play a pivotal role in shaping Africa's digital future.