Owen Goodson recalls the early days of mobile internet connectivity in Malawi very well. At the time, he says, internet was very slow for downloads and uploads while time-outs were a regular occurrence since the technology was second generation internet speed (2G). However, the carpenter by trade, says that did not bother him much. What was worrying him was the cost of data. Mobile internet connectivity cost he says was exorbitant.
“When the mobile internet connectivity arrived in the country in 2008, we were excited as it meant we could access information on our mobile devices unlike previously when one needed to go to an internet café to access the internet. However, that excitement was soon taken over by the exorbitant pricing of the data by carriers.” He recalls.
The cost of data in the landlocked South East African country, had been a cause for concern to many consumers where in 2020, consumers were paying US$25 per one gigabyte. This led the country to be ranked the country with highest internet tariffs. The African Union’s Digital Transformation Strategy for Africa (2020-2030) lays out a bold vision; an inclusive, integrated digital society where no one is left behind. It aims at universal internet connectivity. However, getting there is not that easy.
One of the challenges that Africa faces on this journey is affordability. For millions of African citizens, the internet isn’t just out of reach, it is out of budget. When affordability becomes a barrier, digital access turns into a privilege. This persistent digital divide is not merely a tech problem; it is a development crisis. Every unconnected community represents untapped potential for education, healthcare, e-commerce, and civic engagement.
However, for Malawi, things have changed. Four years after being named as the country with highest data tariffs in Africa, Malawi has made rapid gains and is now the country with the lowest internet cost thanks to the series of coordinated reforms by the country’s communications regulator, Malawi Communications Regulatory Authority (MACRA) including strategic regional negotiations and policy shifts across the telecommunications sector. This has resulted into a 99 percent cost reduction to the data consumer who now is paying $0.38 per one gigabyte.
The affordability of the internet connectivity is powering small scale business ventures for people like Goodson. A carpenter by trade, the father of three says with the internet now he is able to search and get new designs of furniture for his customers.
“Nowadays, carpentry like any other trade, is rapidly improving with new designs and equipment coming up. So with the internet access, I am able to access all these on my smartphone and actualize it for my clients.” he says.
Goodson says he hopes the cost of internet continues to be affordable to majority Malawians so that they can utilize it to the maximum in various ways that can benefit them like he has been doing adding that he also uses the internet to showcase his furniture products on WhatsApp and Facebook where potential customers get in touch to conclude business deals.
As of January 2024, according to Malawi Communications Regulatory Authority (MACRA) there were 5.86 million internet users in Malawi, most of whom are using mobile devices. This translates into 27.7 percent internet penetration rate which is a 2.6 percent increase from January 2023. With Fourth Generation (4G) internet connectivity covering 79 percent of the country, coupled with an increase in availability of affordable smartphones, more Malawians are being connected by each passing day.
Another area which is changing face because of the internet in Malawi is the education sector. The internet has revolutionized education, transforming learning in the digital age through enhanced access to knowledge and learning opportunities. The accessibility and scope of online resources have fundamentally changed how students study, and also how teachers disseminate information. The internet has significantly changed how people learn, opening up new possibilities for independent study, teamwork, and research. While internet use in tertiary education has been there since the advent of internet, nowadays in Malawi, it is common to see secondary school students using the internet connection.
Timothy Tadala Chimwaza, a final year secondary school student in the capital, Lilongwe is one of the growing number of secondary students utilizing the internet to increase their knowledge. He says he has been using the internet to access material which his school library does not have or it is in short supply.
“The advent of affordable internet is enabling me to access books which my school library does not have or are in supply. All I have to do is buying enough data and I am able to download PDF files into my smartphone and use whenever I want.” He says.
Chimwaza says with the internet, he is able to join special interest groups on social media platforms like WhatsApp and Telegram where he and other students are able to remotely discuss and share academic materials which could have been difficult to do physically due to distance and time constraits.
“These days I no longer have to worry about the distance and time to meet up with friends in order to help each other with academic work. We do that through the WhatsApp or Telegram platforms which are proving handy to many of us.” Says the 21 year old who aspires to be an accountant.
The affordability and accessibility of mobile internet has increased the number of people buying internet bundles. While a majority of mobile internet users buy data bundles on their handsets via the mobile money wallets, a fraction of them prefer to buy from mobile money agents who are spread across the country. These are people who operate mobile money transfer outlets where people can deposit or withdraw cash from their mobile wallets.
Edward Manyumba, 28, operates a mobile money kiosk in the high density suburb of Area 44 in Lilongwe and he says while most of the profits his business makes from the mobile money transactions, he earns some from the data bundles which his customers mostly the youths and women, buy from him.
Manyumba estimates there has been at least 15 percent increase in profits in his business in the past six months which he thinks it is because increased buying power of data consumers following the decrease in the end user pricing.
“Despite the business climate being not generally good, however the consumption of data especially among the youths has increased. A lot of young people are coming to buy data bundles from me as a mobile money agent which has seen a 15 percent jump in my profits.” He says.
How Did Malawi Manage to Significantly Reduce the Cost of Internet?
According to Daud Suleman, who is the Director General for MACRA, attributed the significant reduction in data cost to the end consumer to the successful negotiations with Tanzania and Zambia to reduce cross-border transit tariffs that operators pay to connect to the undersea internet cables as a critical step towards affordable data to the consumer. He says they are working hard to conclude similar talks with Mozambique and Namibia which he says will also bring in additional savings to the country while at the same time bringing reliable, faster and affordable internet to more people.
Suleman also mentioned the licensing of Starlink, SpaceX’s satellite broadband provider that has brought competition on the market supported by the recent emergence of rural community networks.
He also mentioned the Malawi Digital Foundations Project which run from 2017 to 2024 with the support from the World Bank. Through the project, there has been expanded access to high speed affordable internet across the country. The project benefitted 8.5 million citizens of the South East African nation including the youth, as well as government departments, businesses and institutions of higher learning in increasing access to affordable, high-quality internet services for government businesses and citizens. It also aimed at improving the government’s capacity to deliver digital public services.
“The initiative has brought nearly 7 million new users online and improved speeds and affordability for 3 million existing users following the additions like a new national data centre, data exchange platform and expanded connectivity to over 600 government sites including post offices, schools, and hospitals. As a result, wholesale price of bandwidth dropped from $460/Mbit/s to below $10/Mbit/s, thereby enabling more equitable access to digital services.” He said.
A milestone was achieved in December 2023, when Parliament passed the Data Protection Bill into an Act. It establishes a detailed framework for the protection of personal data, aligning with international standards. The law also designates MACRA as the data protection authority.
An ICT expert, Clarence Gama while commending the Internet Service Providers and government for the affordability, pointed out ultra-low data prices could undermine the long term sustainability of the telecommunication sector if operators are not able to invest adequately in infrastructure. He suggests affordability be accompanied by strategic investment and stronger public-private partnerships.
Despite all the positives, the World Bank in its report titled “Digitalizing Malawi to improve access to education, public services, and income opportunities,” points out high levels of sector taxation, limited regulatory authority, and lack of political will to address competition issues as some of the key policy bottlenecks that further need to be addressed.