The landscape of Africa’s domain name industry has evolved significantly, doubling its registered country-code top-level domains (ccTLDs) since 2016. However, this growth is uneven across the continent. High costs, limited infrastructure, low digital literacy, and insufficient local content continue to impede progress. South Africa, Kenya, and Nigeria lead the region, while other countries, such as Eritrea and South Sudan, progress gradually. Addressing these gaps is critical to fostering inclusive growth in Africa’s digital economy.

Infrastructure remains the foundation of a robust domain name industry. The study underscores the urgent need for:

1. Affordable and Accessible Broadband: High data costs discourage Internet use and limit domain registrations. Currently, Africans pay around 4% of their monthly income for 1 GB of data, double the Broadband Commission's affordability target of 2%.
2. Expanding IXPs and Data Centers: Local Internet Exchange Points (IXPs) and data centers reduce latency, lower costs, and encourage local content hosting. Africa now has 63 IXPs in 38 countries, but this coverage must be expanded, especially in underserved regions.
3. Fostering Mobile Network Upgrades: With most Africans accessing the Internet through mobile phones, upgrading networks to at least 3G or 4G is imperative. The study notes promising developments with nine countries launching 5G networks.

These advancements will create a foundation for a more connected and productive domain name industry, enhancing access to digital services and fostering economic opportunities.

Policy and regulatory frameworks play a pivotal role in shaping the Domain Name System (DNS) landscape. The study highlights several key areas for reform:

1. Streamlining Domain Registration Rules: Simplified and transparent domain registration processes encourage participation. For instance, removing restrictive policies, such as local presence requirements, can open markets to a broader audience.
2. Cost-Based Pricing Models: Domain registration fees must be low and cost-based to stimulate demand. Excessive fees drive users to top-level domains hosted offshore, reducing local industry revenues.
3. Fostering E-Government Initiatives: Governments can act as 'anchor clients' by hosting their services on local ccTLDs. This not only drives demand for local domains but also promotes trust and reliability in national digital infrastructure.

The African Union’s Digital Transformation Strategy for Africa (2020-2030) emphasizes the importance of managing ccTLDs as critical national resources, aligning with these recommendations.

A thriving domain name industry relies on locally relevant content that resonates with users. The study calls for:

1. Promoting Indigenous Languages: Supporting content in Africa’s diverse languages is vital for inclusivity and broader Internet adoption.
2. Digital Literacy Campaigns: Equipping citizens with the skills to create, manage, and utilize digital content is essential. Training programs targeting technical and entrepreneurial capacities will nurture a new generation of digital creators.
3. E-Government as a Catalyst: Governments should lead by example, digitizing public services and encouraging the use of local domains.

The study provides a roadmap to overcome these challenges and foster a thriving DNS ecosystem in Africa. Key recommendations emphasize the need for policy adjustments, urging governments to prioritize digital inclusivity, reduce Internet costs, and streamline regulatory frameworks. Infrastructure investment is also crucial, with a focus on accelerating the development of Internet Exchange Points (IXPs), data centers, and broadband networks to ensure reliable Internet access.

Additionally, local capacity building through training initiatives and awareness campaigns can foster greater demand for domain registrations and the creation of online content, contributing to a more robust digital ecosystem.

The Coalition for Digital Africa plays a critical role in driving this transformation by bringing stakeholders together to address these systemic challenges. Collaborative efforts among governments, private sector actors, and international organizations can create an enabling environment for Africa's digital growth.