- The economic impact of Facebook’s initiatives to be over USD57 billion in additional GDP over five years between 2020 and 2024.
- Facebook investments in infrastructure and connectivity across the region will deliver over $57 Billion in Economic Benefits over the next five years (2020–2024).
- The infrastructure required to provide this connectivity is relatively scarce in sub-Saharan Africa compared to other regions of the world.
- In response, Facebook has launched a range of connectivity initiatives aimed at tackling these barriers, by providing financial and technical inputs that can make infrastructure easier and cheaper to deploy.
- First, Facebook invests in network infrastructure, either directly or through long-term contracts. These investments include fiber investment under the OTNx umbrella
- Second, Facebook has developed programmes through which it works closely with telecoms operators and Internet service providers to improve connectivity, typically using innovative platforms and technologies that can improve the economics of network deployment and operation.
These initiatives contribute to Facebook’s mission
“to give people the power to build community and bring the world closer together”, by using applications and online services provided by Facebook and other providers, accessing the wealth of content available on the Internet, and creating their own content and services.
These initiatives create socio-economic benefits for consumers, businesses, and governments throughout sub-Saharan Africa.
Individuals benefit through increased access to information and services, which leads to improved quality of life, health, education, and income. Businesses benefit from increased organisational efficiency and ease of reaching and communicating with customers.
Finally, governments can use better connectivity to boost efficiency and transparency, as well as increasing the reach and quality of e-government services.
Overall, Facebook’s investments make data cheaper and more affordable for end-users, which drives growth in overall Internet usage.
A study by Copenhagen Economics found that infrastructure investment by Google in Europe not only creates direct benefits in terms of jobs required for construction, maintenance and project management, but also produces further positive economic outcomes through indirect and induced effects (i.e. effects in the broader supply chain and the knock-on impact on the broader economy of the jobs created and income generated).
According to the study, network connectivity investments can have a GDP multiplier of 1.35, meaning that for every USD1 of direct investment a further USD1.35 of GDP is generated through indirect and induced effects.40
According to The Economist Intelligence Unit – Inclusive Internet Index 2020, over 800 million people in Sub-Saharan Africa are unconnected to the internet.
Over the years, Facebook has invested in infrastructure and partnerships to address the barriers to connectivity, such as the lack of availability in infrastructure, affordability, relevance and readiness to get online.
To be updated
