The digital gifts and futures of Africa pass through many cables submerged in the depths of the Red Sea. Djibouti is currently home to 10 submarine and terrestrial cables, integrating its role as a key gateway for regional and international digital communications.
Since its creation in 1999, Djibouti Telecom has been built on the country's unique geographical location and the presence of these cables to transform the telecommunications sector into a major economic asset. Djibouti Telecom posted a solid performance. For example, in 2023, nearly 40% of revenue (mainly $255 million in total revenue) came from international business. Operators connect over 60 Internet service providers in 90 countries. It provides connectivity to the East and South Africa, the Middle East and Europe.
“We are pleased to announce that we are committed to providing a range of services and services to our customers,” said Mohamed Assoweh Bouh, CEO of Djibouti Telecom. “Our strategy initially focused on regional and international connections. Over the past decade, we have been paying Ethiopia, Somalia and Kenya salaries in Ethiopia, Somalia and Kenya.
Responsibility goes beyond the simple transmission of data. Djibouti Telecom maintains constant security monitoring of its infrastructure. Submarine cables passing through Djibouti follow protected corridors monitored by satellites.
Upon surface on the land, these cables are connected to four energy self-sufficiency stations that are monitored 24/7. This is essential to ensure the security of the network against Red Sea breakdowns and geopolitical tensions. “We're committed to developing digital deployment and development,” said Yann Jaffré, associate director at Tactis, who specializes in digital deployment and development.
The impact of liberalization
However, while Djibouti Telecom remains unparalleled for its international connections, its advantage in the domestic market is currently being challenged. In recent years, the sector has gradually opened up to allow new players to establish themselves.
Afrifiber, a subsidiary of IIB Group, has already deployed a fiber optic network covering 3,600 households with the aim of serving 90% of Djibouti city within five years. To7 Network specializes in hosting submarine cables and data centers in collaboration with Wingu Africa.
This new ecosystem is already producing tangible results, including lower fixed internet fees, improved services, and diversifying offers. Djibouti Telecom, which employs 2,500 people, is no longer able to rely on its former monopoly position. But CEO Mohamed Assoweh Bouh said competition “inspires us even more.” “It's our responsibility to embrace new challenges, innovate and stay one step ahead of our competitors,” he adds.
Afrifiber was the first private company to obtain an Internet Service Provider license in 2019. It relies on fiber optics to modernize local services. After the rollout was delayed due to the pandemic, it launched high-speed broadband in May 2023. However, it remains reliant on Djibouti Telecom for international connectivity, aiming to diversify options through the TO7 network.
“We are a competitor and customer of Djibouti Telecom,” says Neili Yahyaoui, CEO of Afrifiber. “Today there is no alternative to access international connections.” The arrival of TO7 could potentially reshuffle the card. The company will host Blue Ramen, the first submarine cable developed by Google. This represents, for the first time, a reliable alternative to Djibouti Telecom.
At the same time, Afrifiber is developing Afridata-Park, a data center located in the PK23 free zone with a 5 MW solar park and an artificial intelligence training center. “A clear regulatory framework is essential to supporting the development of the sector,” says Yahyaoui.
“The digital code laws submitted to Congress should play a key role in market organizations, particularly in the construction of competition regulation and infrastructure sharing,” he says. In any case, he welcomes Djibouti's security and regulatory framework.
Transformation to stay competitive
In the face of this competition, Djibouti Telecom coordinates its strategy at all levels, internationally, regionally and nationally. Operators reduced their financial exposure by welcoming new submarine cables without direct investment. This approach guarantees stable revenue while limiting risk. At the same time, Djibouti Telecom is experimenting with 5G through a pilot project planned for deployment in 2025. We are also working on expanding textiles nationwide.
Another area of modernization is the project in partnership with Paix, a pan-African provider of cloud and carrier-neutral data, and the Djibouti Sovereign Wealth Fund (FSD).
The goal is to make Djibouti a data hub to attract giants like Google and Facebook. “Djibouti must become a true digital platform in our region, a marketplace where customers can find all the data they need,” explains Bouh.
“The cost of climate and electricity remains a challenge for Djibouti,” said Yann Jaffré, associate director at Tactis. “However, electrical interconnections and target investments with Ethiopia have enabled Djibouti to overcome these obstacles and become an important digital hub for East Africa.”
Future outlook
The opening of Djibouti Telecom's capital in December 2021 is also an important stage in operator transformation. Today it is entirely owned by the state via FSD. FSD is on its mission to increase the value of the country's strategic assets and attract investors. Therefore, the FSD is piloting the opening process with the aim of modernizing the flagship of this national economy. This is the opening where the operator CEO looks at from a positive perspective. “To evolve in this competitive environment, we need to transform our models. The introduction of investors into telecom capital with relevant expertise and funding is essential for infrastructure development.”
Another major challenge concerns the emergence of Starlink, Elon Musk's satellite internet company. “Today there is no clear regulatory framework for these new players yet,” the CEO emphasizes. Some African countries have already granted licenses, but others are cautious too.
“The arrival of players like Starlink can be assets in poorly covered regions, but it also raises the issue of digital sovereignty and its impact on traditional operators.”
If Djibouti Telecom is intended to remain competitive in this changing landscape, it needs to adapt to these new realities. “Tomorrow's Djibouti newsletter will not remain as it is today,” the CEO concludes. “We're evolving, we're more agile and more competitive. It's a necessary transformation and we're going to do it.”
