Private capital key to closing Kenya’s telecom gap, CSquared CEO

Private capital key to closing Kenya’s telecom gap, CSquared CEO

NAIROBI, Kenya, Sept 25 – Africa’s digital transformation cannot rely solely on governments or donor funding, and Kenya’s telecom sector reflects this reality, according to CSquared Chief Executive Officer Ian Paterson, who notes that private capital is essential to drive sustainable infrastructure growth.

Speaking to Capital Business, Paterson said Africa’s digital transformation cannot rely solely on governments or donor funding, stressing that private capital is needed to drive sustainable infrastructure growth.

“Africa’s telecom sector stands at an inflection point. While financing gaps remain, they also signal where the most transformative opportunities exist,” he said.

Paterson identified three areas for impactful investment: shared open-access infrastructure, extending coverage to underserved communities beyond urban centers, and innovative financing such as blended finance and public-private partnerships.

He cited CSquared’s West Africa superhighway, a cross-border open-access backbone funded by institutional investors and development finance institutions, as a model that could be replicated in East Africa to link Nairobi, Kampala, and Kigali, boosting regional trade and positioning Kenya as a digital hub.

For Kenya, Paterson noted that open-access fiber has already helped SMEs, startups, and digital service providers adopt cloud tools, cut costs, and access new markets.

Independent studies from Togo’s Equiano subsea cable landing project GDP gains of over $200 million (Sh26.3 billion) and nearly 37,000 jobs by 2025, with internet prices expected to drop by 14 percent.

He added that Africa’s connectivity future will require a mix of fiber, satellite, and wireless backhaul, alongside stronger links between Nairobi’s expanding data centers and global networks.