In this week’s episode of the Techpoint Africa Podcast, our hosts, Bolu Abiodun and Chimgozirim Nwokoma, break down two major developments in African tech. They begin by discussing Starlink’s significant price hikes in Nigeria, before delving into a major collaboration between Itana and the Africa Finance Corporation (AFC) to create Africa’s first digital economic zone.
The episode opens with Starlink, SpaceX’s satellite internet service, which has more than doubled its subscription prices in Nigeria, citing “excessive inflation.”
However, the hosts answer the question of whether Starlink’s price increase is justifiable given that it doesn’t have any known operational expenses in Nigeria.
With its 1TB fair usage policy, the standard residential plan will now cost ₦75,000 ($48) per month, up from the previous price of ₦38,000 ($24).
While the price of Starlink kits in Nigeria remains steady at ₦440,000, the podcast hosts highlight a significant point of comparison with Kenya, where customers have access to more affordable options. In Kenya, users can rent the Starlink kit or opt for a lower-cost 50GB plan, which isn’t available to Nigerian customers.
The Starlink Mini kit is also offered in Kenya at a reduced price, providing cheaper internet services with slightly lower speeds. These price changes raise critical questions: will Starlink lose Nigerian users?
Moving on to an exciting development in Africa’s digital economy. Itana and the Africa Finance Corporation (AFC) have announced a partnership to establish the continent’s first digital economic zone. This collaboration was unveiled at the Global Africa Business Initiative (GABI), held during the United Nations General Assembly in New York.
The AFC will lead the financing of the first phase of the project, valued at $100 million, with technical advisors including Future Africa, PwC Nigeria, and the Charter Cities Institute.
The initiative is part of a broader effort to promote digital economic zones in Nigeria (DiFZIN), supported by the Nigerian government.
Itana, co-founded by Luqman Edu, Coco Liu, and Iyinoluwa Aboyeji, seeks to provide a stable, innovation-friendly environment with its Lagos-based digital economic zone. The project will cater to tech, finance, and service-based companies looking to expand across Africa, offering benefits like reduced taxes, full foreign ownership, and simplified business regulations—features typically found in free economic zones.
As Africa continues to position itself as a global player in technology and innovation, these two stories showcase both the challenges and opportunities present on the continent. While inflation and economic pressures impact access to crucial services like the Internet, initiatives like the digital economic zone promise to foster greater growth and investment in the future.
You can catch up on the conversation on Google Podcasts, Apple Podcasts, Spotify, YouTube, and anywhere you get your podcasts. You can also send your questions and observations to podcast@techpoint.africa or share your thoughts using the hashtag #TechpointAfricaPodcast on social media.
