Africa: Why Rwanda Leads in Affordable Internet for Africa's Digital Nomads

6 November 2024

If you're among the many people working remotely or travelling as a digital nomad, internet speed and affordability are likely at the top of your list when picking a destination.

Reliable, fast internet isn't just a perk but essential for a digital career.

A 2023 report by the International Telecommunication Union (ITU) highlights big global differences in broadband prices across 223 countries.

In Rwanda, average broadband costs around $22.15 (about Rwf30,124), with basic mobile data and voice plans costing $7.44, and advanced plans at $4.25. These prices are notably lower than the African average of $5.48 for basic plans and $8.57 for high-consumption plans.

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The survey examined various broadband plans available, representing what's on offer rather than what most people pay. Prices shown reflect market choices rather than typical expenses, as some popular plans may be excluded or have temporary promotions.

"Prices for standard speeds, between 25 and 100 Mbps, have been dropping steadily, with rates now around Rwf25,000 to Rwf30,000 depending on the internet provider. However, high-speed plans--up to 150 Mbps and 500 Mbps--are pricier, ranging between Rwf40,000 and Rwf199,999, and are mostly aimed at business users," explained Alex Imani, an internet merchant in Kigali.

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Variations in prices are due to infrastructure, local economy, and geography. "Our broadband market has made strong strides, especially in personal internet affordability.

Rwanda is among the more affordable countries in the region for individual internet access, thanks to effective regulations and government-backed private sector support," said Fidel Karenzi, a Senior Technologist at Rwanda's Ministry of ICT and Innovation.

"This push aligns with an evolving broadband policy focused on reforming the market structure to benefit customers," Karenzi explained.

"Recognizing the role of fixed broadband, particularly during the pandemic, the government prioritised expanding broadband infrastructure to ensure business continuity and support remote needs like homeschooling and telework."

The increased private investment has helped expand high-speed connectivity into residential areas, significantly reducing prices as competition intensifies.

"For example, the price of a basic fibre package dropped from $50 in 2019 to $20 in 2020, making it far more affordable," Karenzi added.

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Reports show varying pricing structures for broadband packages, covering both high-end and entry-level options.

Data from local ISPs indicate that the most subscribed fibre-to-home package is priced around $20, a popular choice among consumers.

Asked about whether broadband prices are accessible across income groups in Rwanda, Karenzi responded:

"The Government of Rwanda has made substantial investments in expanding fibre and mobile network infrastructure nationwide, focusing on geographic coverage beyond just population centres. This approach aims to provide equitable access across all regions, including underserved and rural areas."

"Under the Ministry of ICT and Innovation's revised Broadband Policy, the broadband landscape has grown more competitive," he continued. "Mobile network operators were licensed to provide 4G services as of July 2023, nearly doubling broadband adoption from 25 percent to 47 percent in a year, helping us meet our national targets."

The ministry also emphasised efforts to support low-income earners through subsidised smart device programs, bundled with annual internet plans.

"This initiative is expected to increase smart device ownership, particularly among those in lower-income brackets, who might otherwise face connectivity barriers."

In light of the data on broadband access, the Ministry of ICT and Innovation shared plans to address disparities in connectivity, with an eye on making Rwanda a key destination for remote professionals.

Karenzi explained how the government plans to close the access gap and attract more digital nomads,

"Rwanda's commitment to digital inclusivity has led to significant reforms, including updates to employment regulations that make it easier for digital nomads to obtain work visas. These updates, along with Rwanda's customer-focused regulatory environment, have positioned the country as an affordable and attractive base for remote workers," he said.

One recent initiative, the Zero MTR (Mobile Termination Rate) policy, has reduced broadband and mobile internet costs, allowing users to purchase 1GB of mobile data per day for 30 days at just Rwf3,000.

"This policy has made high-speed internet more accessible for a wider range of users," Karenzi noted.

Rwanda's role as a testing ground for digital solutions has further boosted its appeal.

"We've become a 'proof of concept' hub for new technologies, attracting innovations that expand digital opportunities," he said.

An example of this commitment is Connect Rwanda 2.0, an initiative launched to increase 4G access by offering a smartphone for only $16, paired with 1GB of data per day for 30 days at Rwf1,000.

"This initiative focuses on reaching low-income and remote populations, and has already distributed over one million 4G smartphones to new users," Karenzi added.

Furthermore, the government has partnered with various organisations to deploy community WiFi in popular public spaces across Rwanda.

"Currently, WiFi services are active in four pilot locations, including the main bus station and youth centres, with plans to expand to 16 more sites, like market centres and car terminals, by November 2024," he explained.

"This expansion will help bridge the digital divide and increase connectivity for communities throughout the country."

According to ITU, global fixed broadband affordability saw a modest improvement in 2023, with the average cost dropping to about 2.9 percent of a country's average income per person (GNI per capita).

This marks a slight decline of 0.3 percent from the previous year. The ITU noted the most significant price decreases in lower-middle-income countries; however, broadband remains costly, consuming around 8.4 percent of the average income in these areas.

Affordability gaps are stark worldwide, especially for fixed broadband. In wealthier countries, internet plans cost only about 1 percent of a person's monthly income, but in lower-income countries, they can be as high as 31.3 percent.

This means that in these regions, broadband is often a luxury used mainly by businesses or high-income individuals.

Regionally, Africa and least-developed countries (LDCs) face the largest affordability gaps compared to other parts of the world, highlighting a need for continued efforts to make internet access more equitable.

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