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© M-Imagephotography Digital Africa © m-imagephotography Digital technology is not only key to achieving the UN Sustainable Development Goals, it also supports our own ambitious commitments at Orange Middle East and Africa in terms of environmental responsibility and digital inclusion. That’s why we have identified the six main Goals where we feel we can have the greatest impact. Together let’s work to build a more responsible, sustainable world. Contents “ Our vision for Africa by Alioune Ndiaye ................................................................................ 3 1 How digital technology accelerates Africa’s integration and development ..... 4-7 2 Orange’s international interconnection network: spotlight on Africa ............. 8-9 3 Connecting Africa to the entire world .............................................................................. 10-13 4 Boosting digital inclusion in Africa ......................................................................................14-17 5 Digital tools for socio-economic development and employment ...................18-21 6 How digital services drive inclusion and development ......................................... 22-25 2 Back to contents The education divide experienced by women and rural populations will have gradually been reduced. There will be countless innovative digital solutions designed to meet the needs of African people. State services will be more relevant, easier to use, and better targeted thanks to digitalization, data, and artificial intelligence. And because improved access is closely linked to economic growth, increased connectivity will greatly contribute to the continent’s prosperity because it facilitates business and government activities. To tackle the climate emergency, Africa will have embraced these digital transitions in an eco- friendly way by increasing the use of renewable energies and reducing waste. At Orange Middle East and Africa, we firmly believe that this dream is within our grasp, and so we’re investing €1 billion every year on the continent to help achieve it. We appreciate that the role of an African telecommunications operator cannot be limited to a purely economic contribution. This is why we’ve placed digital inclusion and environmental responsibility at the heart of our Engage 2025 business Our vision strategy, making a firm commitment to achieve net zero carbon emissions by 2040. We’re investing in Africa, for Africa creating direct and indirect jobs in Africa, and developing infrastructure in Africa. We’re also training young people and women in digital technology through our Orange Digital Centers and The Africa of our dreams is Foundation initiatives. At Orange Middle 100% connected. Africans East and Africa, we’re doing whatever everywhere can use affordable devices it takes to become the preferred multi- to access the internet and enjoy service operator committed to African excellent connection quality. This populations. is an Africa where, thanks to digital technology, people can stay healthy, study, work, communicate, and manage their finances no matter where they are, Alioune Ndiaye, even in the most remote villages. CEO of Orange Middle East and Africa 3 Back to contents How digital technology accelerates Africa’s integration and development At the start of the third millennium, digital communication and services are taking an increasingly prominent place in our everyday lives. Heavily reliant on networks, these services bring us closer and accelerate economic development. Heavily reliant on “Transforming Africa into a single digital market” is the networks, digital services overarching objective of the Smart Africa1 alliance, in line with bring us closer and the African Union’s digital transformation strategy2. accelerate economic Orange fully subscribes to this and is proactive, through development.” numerous initiatives, in accelerating the continent’s digitalization. Keeping intra-African 1 traffic within Africa As a major player in Africa, Orange sets itself apart Improved mobile network coverage and the through the exceptional coverage of its domestic exponential growth in mobile and fixed broadband networks and the reach of its international networks enables individuals, businesses, and operators to (see the network map). access a wider range of innovative digital services. The strength of its African subsidiaries means that Orange Middle East and Africa can leverage the infrastructure needed to enable direct interconnection between African operators. 1 Smart Africa, Strategic Vision, 2019. // 2 The Digital Transformation Strategy for Africa (2020-2030), African Union, 9 February 2020. 4 Back to contents Mobile subscriptions by technology generation in Africa and the Middle East 60% 50% 40% 30% 20% 10% 0% 2016A 2017A 2018A 2019A 2020E2021E 2022E2023E 2024E2025E 2G 3G Source: Globaldata, Mobile Broadband Market Trends 4G 5G and Opportunities in AME, 23/09/2020 Orange is therefore contributing to and supporting To facilitate African roaming, since 2015, Orange African development over the long term alongside has run a Roaming Operational Center as a global economic players and countries. Through a diverse center of excellence in Abidjan, which oversees range of technical solutions – terrestrial networks, the testing and launch of new roaming routes, either satellite capabilities, and connections to international directly with regional and global partners or via its submarine cables – Orange supports network traffic Roaming Hub, to which more than 100 operators are growth for all African operators. connected. Orange also invests in continually improving To complete the picture, from 2021, inter-operator customer experience and achieving excellent roaming traffic in Africa will be hosted in a Data service quality, in terms of data transit and local Clearing House located in a data center on the switching of voice traffic. 35 Points of Presence continent. located in Africa make it possible to interconnect all African operators, avoiding communication In addition to these actions, as a member of the and data transit through Europe, which can be a Smart Africa alliance, Orange is fully committed source of latency and malfunction. to the One African Network (OAN) project. This aims to reduce the cost of communications while guaranteeing to keep intra-African traffic within Africa. © PeopleImages 5 Back to contents New policies to stimulate 2 investment and inclusion To accelerate digital inclusion in Africa, the current at an affordable cost, to promote investment and public policy and regulatory framework will have to the democratization of digital services. In addition, evolve significantly to be both stable and forward- the spectrum must be provided in sufficient quantity looking, and therefore able to adapt to innovative and quality; this requires spectrum neutrality to and dynamic markets. ensure it is managed efficiently and flexibly, fostering innovation to extend coverage. Firstly, transparent frequency management is particularly important for operators. If Africa is to A study by the International Telecommunications fully embrace digital, it is absolutely necessary that Union confirmed a strong link between mobile national authorities make the necessary frequency telephony and GDP growth in Africa: a 10% spectrum available to operators. To enable as many increase in mobile broadband penetration people as possible to access connectivity, spectrum corresponds to an increase of 2.46% in GDP in most must be provided under reasonable conditions and African countries3. 3.0 2.46 2.44 2.5 2.00 2.0 1.83 Regional GDP growth impact 1.73 of an increase in 10% 1.50 1.5 of mobile broadband 1.25 1.16 penetration (in percent) 1.0 Source: ITU, How broadband, digitization and ICT regulation impact the global economy, Nov. 2020, p. 11, figure 5. 0.51 0.5 0.00 0 World Africa Asia Pacific Europe Arab Latin CIS Americas Asia Europe mid & low (low states America (incl. N. Pacific (high income income & Caribbean America) income countries countries) countries) Secondly, from a fiscal point of view, operators in More generally, to overcome unfair competition, sub-Saharan Africa pay very high tax rates today: new competition rules must gradually 26% of their income on average4. Half of these taxes replace the current regulations specific to the are specific to the mobile sector. According to the telecommunications sector. Even greater regional GSMA, reducing mobile communications taxation and continental harmonization of public policies would enable an extension of coverage and uses and regulations will make digital services a vector for and a growth in GDP and total tax revenues.5 Africa taking its rightful place on the world stage. The digital sector, as illustrated by the ITU study cited above, can greatly accelerate growth and development, provided that it ensures inclusive access and reasonable costs for all. 3 ITU, How broadband, digitization and ICT regulation impact the global economy, Nov. 2020. // 4 GSMA, Rethinking mobile taxation to improve connectivity, 2019. // 5 GSMA, Mobile Economy Sub-Saharan Africa, 2020. 6 Back to contents Digital services for Africa, 3 hosted in Africa The range of digital services has greatly expanded of stakeholders and protect African administrations, with the increase in smart devices. Digital technology civil society organizations, and companies from is now central and essential to the lives of Africans: for threats and denial service attacks – Orange has staying in touch from anywhere and accessing
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