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Is fibre optic cable key to Africa’s economic growth?

The elite of Kenya’s much-heralded entrepreneurship revolution work in an ultra-modern. co-working space overlooking the bustle of Nairobi.

Their businesses are reliant on the high-speed internet available here.

The Nairobi Garage is one of a limited number of work spaces in the city boasting a dedicated 25 megabits per second [Mbps] fibre internet connection.

Fibre is definitely not the norm in Kenya – a country viewed as a leader in African technology innovation. In financial terms, fibre internet is way beyond the grasp of most entrepreneurs and small businesses.

A 25Mbps connection costs in the region of $4,000-$5,000 (£2,700-£3,380) a month.

Pulling together

“Tech is taking off in Kenya thanks in large part to the arrival of fibre internet – unfortunately the cost of this to companies is still extremely high.
“Large companies like banks can afford the prices of corporate internet, but for start-ups and SMEs [small and medium sized enterprises] the costs are crippling,” says Hannah Clifford, general manager at Nairobi Garage.
Over 100 small businesses have started out life in the communal work space, which currently accommodates 30 start-ups all using the stable high-speed internet connection offered at a subsidised cost.
“Through shared work spaces like Nairobi Garage, which is aimed at supporting the start-up sector, young businesses and entrepreneurs are able to get internet access as part of their office space at very affordable rates.
“High-speed, reliable internet is vital for these young businesses to compete with the likes of Silicon Valley,” she says.

 

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