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Optical Fiber Networks and High-Speed Internet Services

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Optical Fiber Networks and High-Speed Internet Services

Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Infrastructure
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Infrastructure
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9) Partnerships For the Goals (SDG 17)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Reduced Inequalities (SDG 10)

Business Model Description

Deploy a high-speed fiber optic network, independently or with other internet suppliers, to deliver premium internet services to households, enterprise clients, and public agencies, providing dedicated connectivity and cloud-based solutions. Under a Public-Private Partnership with the government of Côte d'Ivoire, private actors can contribute to the development of the country's 7,000-kilometer backbone project, providing financing and building infrastructure. Contracting firms are also eligible to commercialize the infrastructure they develop. Additionally, wholesale services to internet service providers (ISPs) and mobile operators will maximize infrastructure utilization and generate long-term revenue streams (53).

Expected Impact

Foster digital inclusivity, enhance economic empowerment, and reduce gender inequality by expanding access to the internet.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

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Country & Regions

Explore the country and target locations of the investment opportunity.
Region
  • Côte d'Ivoire: Comoé
  • Côte d'Ivoire: Denguélé
  • Côte d'Ivoire: Savanes
  • Côte d'Ivoire: Zanzan
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Infrastructure

Development need
Côte d'Ivoire estimated its public investment financing needs at 15 billion dollars over the period 2021-2025, notably to fund large infrastructure projects and digital technology. The coverage rate for cleaning services increased from 3.3% in 2018 to 10.4% in 2022, and remains limited in rural areas. Côte d'Ivoire's ICT Development Index was ranked 127th in the world in 2024, lower than the average for countries with the same level of GDP per capita (1, 7, 8).

Policy priority
The National Development Plan (2021-2025) aims to develop large infrastructure for large cities facing the challenge of rapid urbanization, including the construction of interchanges, and 4,334 km of new roads, four recovery units for solid waste, and the extension of 5,435 km of fiber optic network (3, 8).

Gender inequalities and marginalization issues
Large infrastructure projects have significantly advanced the development of southern cities, but progress in northern rural areas remains modest, leading to persistent inequalities in access to basic amenities. Northern regions have high levels of multidimensional poverty and low rates of access to adequate sanitation. Ivorian women are particularly vulnerable to sanitation issues as 85.9% of them are in charge of the supply of water within their family (2, 3, 4, 5, 18).

Investment opportunities introduction
Côte d'Ivoire has one of the most developed road networks in West Africa, with a total of 82,612 km, aiming to invest 3,750 billion CFA Francs (USD 6.2 billion) over five years to modernize it. The market potential for ICT infrastructures is high, with a limited fixed penetration rate (1.4%) and revenues in the fixed internet industry rising 28.5% to USD 37 million in 2023 (5, 13, 14, 15).

Key bottlenecks introduction
Côte d'Ivoire faces a major infrastructure financing gap, worsened by rising public debt, which grew from 38.4% of GDP in 2019 to 58.1% in 2023, and a current deficit of 5.2%. This increases borrowing costs and affects public investment in major infrastructure projects, as the state is a major contractor for large-scale infrastructures. The construction sector also suffers from delays, with construction permits taking up to 163 days, above the regional average of 145 days​ (6, 16, 17).

Sub Sector

Infrastructure

Development need
In 2023, 98% of Ivorians had access to the internet, but the fixed internet penetration rate was just 4.5%. Slow or lack of connection leads to inefficiencies at the administrative level (8, 13).

Policy priority
The National Development Plan 2021-2025 outlined the government's ambition to make the development of the digital economy a lever for economic growth. In 2021, the country also adopted a digital strategy for 2025, with a 2,000 billion CFA Francs budget (3.4 billion USD), to coordinate public action and expand coverage, notably to optical fiber. It aims to improve access to services and competitiveness (3, 9).

Gender inequalities and marginalization issues
Significant inequalities persist in Côte d'Ivoire in terms of access to digital skills and the internet, particularly in rural and northern regions where connectivity rates are low. Furthermore, women comprise just 25% of STEM cohorts in tertiary education, indicating a substantial gender gap in these fields (10).

Investment opportunities introduction
The digital economy sector is growing rapidly in Côte d'Ivoire, weighing 9% of GDP in 2018. It could generate returns over USD 5.5 billion by 2025 and over USD 20 billion by 2050. However, access to broadband internet remains marginal, indicating a high market potential. The government aims to invest 2,000 billion FCFA (USD 3.4 bn) in digital infrastructures between 2021 and 2025 (8 ,9, 10, 12).

Key bottlenecks introduction
The deployment of optical fiber infrastructures and services requires substantial investment and government authorizations, including the C1B license. Investments may have to be carried out under a public-private partnership (PPP) framework. In addition, the poor development of infrastructure in the north, particularly roads and electricity, is slowing down the rollout of fiber-optic cables (3, 11).

Industry

Engineering and Construction Services

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Optical Fiber Networks and High-Speed Internet Services

Business Model

Deploy a high-speed fiber optic network, independently or with other internet suppliers, to deliver premium internet services to households, enterprise clients, and public agencies, providing dedicated connectivity and cloud-based solutions. Under a Public-Private Partnership with the government of Côte d'Ivoire, private actors can contribute to the development of the country's 7,000-kilometer backbone project, providing financing and building infrastructure. Contracting firms are also eligible to commercialize the infrastructure they develop. Additionally, wholesale services to internet service providers (ISPs) and mobile operators will maximize infrastructure utilization and generate long-term revenue streams (53).

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

USD 100 million - USD 1 billion

The projected investments in telecoms and information technologies infrastructure in Côte d'Ivoire would require deployment of 7000 km of fiber optics, accounting for a potential market of more than USD 170 million (13, 15, 48).

Despite rapid improvements, internet speed remains limited in Cote d'Ivoire. At 52 Mbps on average in 2022, it is 40% slower than the global average and 10% slower than neighbouring Ghana, indicating a strong market potential (54).

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

10% - 15%

Investment in fiber optic infrastructure is expected to generate an IRR of 10 to 15%, as acceptable project benchmark (31, 40, 41).

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Long Term (10+ years)

Investments in fiber optic infrastructure have an indicated payback period of at least ten years. High infrastructure and operating costs lead to longer payback periods (31, 40, 41).

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

> USD 10 million

Market Risks & Scale Obstacles

Capital - CapEx Intensive

The cost of installing optical fiber is between USD 30,000 and 60,000 per kilometre, including the cost of laying down fiber optic cables, purchasing equipment, and building data centers (31).

Market - Highly Regulated

The market for Internet infrastructures is strongly regulated, subject to authorizations from the Telecommunication Regulatory Authority of Côte d'Ivoire. Further investment approvals from CEPICI, construction permits, and interconnection agreements may lengthen the process.

Business - Business Model Unproven

Although developed in several African countries, including Nigeria, the marketing of broadband internet services is still in its infancy in Côte d'Ivoire (31).

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

Only 4.5% of Ivorians have a broadband connection, which indicates a poor access to digital services, also limiting access to educational and work opportunities (13).

Côte d'Ivoire ranked 112th out of 132 economies in the 2023 Global Innovation Index. Relative to GDP, its innovation performance is below the average among the lower-middle-income group. This hinders the growth of high-value industries and economic development (27).

Limited access to the Internet by businesses and public administrations restrict outreach (e.g. online sales, appointments, etc.), negatively impacting scale-up opportunities as well as productivity levels (13).

Gender & Marginalisation

Women participation in the economy is limited in rural areas, in connection to poor access to land rights and access to finance (42).

There is a gender gap in access to the internet. For mobile internet, for instance, the gender gap is 34% in urban areas and 51% in rural areas. This limits further economic opportunities for women (10).

Expected Development Outcome

The roll-out of a fiber-optic network will boost connectivity, including in rural areas, and benefit households and businesses alike (46).

Enhancing internet connectivity will strengthen the start-up sector by improving access to global markets, fostering innovation, and enabling broader use of digital tools critical for scaling businesses (47).

Improving the Internet offering will enable companies and public administrations to reach more people and increase their productivity (46).

Gender & Marginalisation

Northern regions and rural areas would benefit from improved access, narrowing the current digital divide. Women could benefit from greater economic participation and access to information, finance, and public services (47).

Increased internet access for households would reduce the connectivity gap between men and women, especially in rural areas where women are disproportionately impacted by limited access. Bridging this gap is critical for gender parity in digital inclusion, as connectivity provides essential tools for economic empowerment and access to digital financial services (47).

Primary SDGs addressed

Industry, Innovation and Infrastructure (SDG 9)
9 - Industry, Innovation and Infrastructure

9.c.1 Proportion of population covered by a mobile network, by technology

9.b.1 Proportion of medium and high-tech industry value added in total value added

Current Value

98% of Ivorians had access to the internet in 2023, including 97% through 3G and 91% through 4G (8, 13).

The telecommunications services sector generated a revenue of 1,139 billion CFA francs in 2021 (USD 1.86 billion), representing 3% of the GDP (49).

Target Value

The long-term objective for this indicator is 100% by 2030. World Bank Group’s Digital Economy for Africa (DE4A) initiative aims to ensure that every African individual, business, and government will be digitally enabled by 2030 (19, 29).

The government aims to create 27,000 jobs in the digital sector by 2025, and expects the sector to contribute to a growth of 6 to 7% of GDP, with the sector's expected revenues reaching USD 5.5 billion by 2025 and USD 20 billion by 2050 (52).

Partnerships For the Goals (SDG 17)
17 - Partnerships For the Goals

17.6.1 Fixed Internet broadband subscriptions per 100 inhabitants, by speed

17.8.1 Proportion of individuals using the Internet

Current Value

The fixed internet penetration rate was 4.5% in 2023 (13).

The mobile internet penetration rate was 98% in 2023, against 4.5% for broadband internet (13).

Target Value

The government aims to significantly increase the share of the population with access to fast broadband services, aiming to roll-out 5,207 kms of optic fiber by 2025, and targeting 7,000 kms in total (52).

The government aims to ensure universal access to digital services (13).

Secondary SDGs addressed

Decent Work and Economic Growth (SDG 8)
8 - Decent Work and Economic Growth
Reduced Inequalities (SDG 10)
10 - Reduced Inequalities

Directly impacted stakeholders

People

The population benefits from enhanced access to information, education, and digital services. Improved connectivity enables remote education, access to health services, and digital literacy programs, directly contributing to the social and economic upliftment of communities.

Gender inequality and/or marginalization

Women and marginalized groups can use the internet to overcome barriers to economic participation. Digital platforms offer avenues for women-led enterprises to access markets, secure financing, and benefit from online communities and resources.

Planet

The planet benefits from digital solutions through reduced paper consumption, particularly in administrative processes, helping to preserve forests and biodiversity.

Corporates

Firms benefit from digital solutions by gaining expanded market access and facilitating the diffusion of technology and information, which can enhance competitiveness across various sectors.

Public sector

Digital solutions enable the government to progress toward its "Zero Paper by 2030" objective, while simultaneously driving economic growth. In addition, the diffusion of optic fiber network contributes to better disaster management and facilitates government action in rural and remote areas.

Indirectly impacted stakeholders

People

The broader population benefits indirectly through economic growth driven by digital innovation, which can lead to job creation, enhanced services, and improved quality of life.

Gender inequality and/or marginalization

Women and marginalized groups benefit from increased digital literacy and access, which enhance their representation in tech-related fields and entrepreneurship.

Planet

The planet benefits from digital solutions enabled by robust internet connectivity, such as smart agriculture, remote sensing for forest and wildlife monitoring, and platforms for sharing environmental data. Access to the Internet support these technologies, contributing to conservation efforts and biodiversity protection.

Corporates

Firms benefit from enhanced internet infrastructure, which serves as a foundation for innovation, operational efficiency, and market growth. Businesses can utilize digital tools to streamline supply chain management, improve customer engagement, and drive product development.

Public sector

Public agencies and administrations benefit from better access to fast Internet, which improves access to information and help in their tasks (civil registration, social services and aid distribution, etc.).

Outcome Risks

The physical infrastructure required to support internet connectivity (e.g., data centers) consumes significant amounts of energy and can lead to environmental degradation if not managed sustainably.

While the construction of optic fiber networks emit five times less than copper networks, it still generates CO2 emissions and can lead to habitats destruction (50, 51).

Without adaptation plans, small businesses and traditional industries might struggle to compete with digital platforms, leading to job losses and economic instability for vulnerable populations.

If robust regulations and protections are not enforced, cybersecurity might be at risk, leading to misuse of personal data and exposing public and private actors to attacks.

Gender inequality and/or marginalization risk: If only the most affluent urban households are connected to fiber and fixed internet, the gap in internet access between men and women is likely to stagnate.

Impact Risks

If infrastructure development costs are passed by internet providers to consumers, many individuals and small businesses may be unable to afford high-speed internet, reducing optic fibber's potential benefits.

Without adequate training or public awareness programs, many citizens may not be able to fully take advantage of the opportunities provided by high-speed internet, particularly in rural or underserved communities.

If not distributed across urban and rural areas, investments in internet infrastructure may not contribute to narrow the digital divide.

Impact Classification

C—Contribute to Solutions

What

Investment in internet infrastructure aims to enhance connectivity, digital literacy, and economic development.

Who

Enterprises, administrations, the population at large, landlocked communities and remote villages would benefit from increased connectivity.

Risk

High infrastructure costs and lack of digital literacy programs could make high-speed internet unaffordable and inaccessible, limiting the benefits of optic fiber, especially in rural areas.

Contribution

The development of optic fiber networks replace alternative modes of communication with limited bandwidth, such as copper-based networks and satellite communication, proving more reliable and affordable.

How Much

The National Development Plan (2021-2025) lays out the objective of extending the fiber optic network by 5,435 km by 2025 (3).

Impact Thesis

Foster digital inclusivity, enhance economic empowerment, and reduce gender inequality by expanding access to the internet.

Enabling Environment

Explore policy, regulatory and financial factors relevant for the investment opportunity.

Policy Environment

The National Development Plan 2021-2025 aims to foster the digital economy by expanding digital infrastructure, including a nationwide fiber optic network and data centers. Additionally, it outlines objectives for building digital skills and increasing financial inclusion through digital services (3).

The Côte d'Ivoire's digital strategy to 2025 (Stratégie numérique de la Côte d’Ivoire à l’horizon 2025) was adopted in 2021 to coordinate public action for the digital economy, with a 2,000 billion CFA Francs budget (USD 3.4 billion). It aims to foster competition in the telecommunications sector; build infrastructures, and expand broadband coverage in rural areas (8, 36).

Cyber security strategy 2021-2025 was adopted in 2021. It aims to secure cyberspace with the creation of a national security operations center (SOC) capable of monitoring cybersecurity incidents in real time and strengthening the protection of critical physical infrastructures, such as optical fiber networks (10, 37).

Financial Environment

Financial incentives: The World Bank has provided USD 300 million in financial support to access to electricity and internet in Côte d'Ivoire, including the layout of 184 km of optical fiber cables in northern regions (30).

Other incentives: Under the High Speed National Network, Côte d'Ivoire is building 7,000 kms of optic fiber cables. Starting from 2025, ANSUT aims to leverage this network to enhance connectivity for Internet service providers (35).

Other incentives: UNESCO and the government of Côte d'Ivoire launched a study on internet access in the country to identify specific objectives for universal access (20).

Regulatory Environment

The 2017 Law No. 2017-803 ("Loi d'Orientation de la Société de l'Information") establishes the framework for developing the information society, focusing on expanding high-speed internet infrastructure. Real estate developers must include high-speed internet in new buildings, and telecom operators must report newly covered areas. Telecommunications infrastructure can be installed free on public land for public utility, with compensation for material damage if applicable (34).

The Comité National de Digitalisation was established by Arrêté N°0910/PM/CAB on September 26, 2022. Its primary mission is to oversee the coordination, alignment, and evaluation of digital transformation initiatives across the country. It supports the design of mutualized financing and operating models, which play a key role for optic fiber networks. Under the authority of the Prime Minister, the committee also plays a central role in modernizing public administration, aiming for a "Zero Paper" strategy by 2030 (33).

Decree No. 2018-34 stipulates that the fee for acquiring a C1 License to provide internet services is set at 250 million CFA Francs (USD 412,000), with the option to pay in instalments (32).

The Authority for regulation of telecommunications and ICT of Cote d'Ivoire (ARTCI) is elaborating plans for the implementation of shared telecommunications infrastructure for 5G deployment. This approach involves issuing a request for proposals from potential contractors to develop mechanisms for infrastructure sharing. This will translate into increased demand for fiber backbone and cost efficiency for operators using the network (21).

Law No. 2013-450 on the protection of personal data was adopted in 2013 to ensure the safe use of personal data and enforce protections against malicious purposes. It requires that telecom operators and infrastructure providers implement stringent measures to protect personal data (28).

Ordinance No. 2012-293 established the Autorité de Régulation des Télécommunications/TIC de Côte d'Ivoire (ARTCI), resulting from the merger of two previous regulatory bodies (Conseil des Télécommunications de Côte d'Ivoire (CTCI) and Agence des Télécommunications de Côte d'Ivoire (ATCI)). ARTCI is responsible for overseeing investments in digital infrastructures, including optic fiber networks (29).

Marketplace Participants

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Private Sector

Moov' Africa, VIPNET, MainOne, Axians (Vinci), MTN CI, Csquared, Axians, Sagemcom, and Bouygues Energies & Services, Confédération Générale des Entreprises de Côte d’Ivoire (CGECI), Ecoband network.

Government

Comité national de digitalisation, Ministère de l'Economie et des Finances, Autorité de Régulation des Télécommunications/TIC de Côte d’Ivoire (ARTCI), Ministère de l'Economie Numérique, des Télécommunications et de l'Innovation, Centre de Promotion des Investissements en Côte d’Ivoire (CEPICI).

Multilaterals

Centre de coopération internationale en recherche agronomique pour le développement (CIRAD), United Nations Educational, Scientific and Cultural Organization (UNESCO), World Bank, International Finance Corporation (IFC), African Development Bank (AfDB), European Union (EU).

Public-Private Partnership

French company Axians was selected for the installation of 1,920 km of fiber optic cable on behalf of the National Agency for Universal Telecommunications Service. Its started its operation in 2016 (38).

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map
semi-urban

Côte d'Ivoire: Comoé

The Comoé district has been identified as having low rates of internet penetration and is the target of digital inclusion programs. Overall, the district is lagging behind in terms of development compared to the rest of the country. Its labor participation rate is small and it has a higher unemployment rate than the national average. The development of internet infrastructure would lead to improved economic opportunities and could contribute to reducing unemployment (39, 43).
rural

Côte d'Ivoire: Denguélé

The North of the country has a less developed digital infrastructure than the south, and benefits from aid, notably from the World Bank, to develop the fiber-optic network. Public administrations in the district are being equipped with computer hardware, but without reliable and fast internet, their efficiency would stagnate (30, 44).
rural

Côte d'Ivoire: Savanes

The North of the country has a less developed digital infrastructure than the south, and benefits from aid, notably from the World Bank, to develop the fiber-optic network. At the frontier with Mali, the connection has been reported to be unstable and very slow. The Savanes district is among the largest in Côte d'Ivoire with a scattered population, which hampers access to public services. Internet access could help to improve accessibility for isolated communities (30, 42, 45).
rural

Côte d'Ivoire: Zanzan

The Zanzan district exhibits one of the highest poverty rates in Côte d'Ivoire, along with significant gender-based discrimination and youth unemployment. The development of digital infrastructures would reduce the barriers to entry for vulnerable populations in terms of access to economic opportunities and healthcare. In addition, the district benefits from aid, notably from the World Bank, to develop the fiber-optic network (30).

References

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