This blog is the third in a series focused on the 2023 Africa Domain Name Industry Study. The blogs contextualize and expand upon data and information gathered during the study.
The 2023 Africa Domain Name Industry Study aims to provide a comprehensive overview of the growth challenges and future potential of the domain name industry across the continent. It was commissioned by ICANN and conducted by PowerSoft Africa in collaboration with the Coalition for Digital Africa. The study builds upon the baseline established in 2016, providing updated insights into the current state of Africa's domain name industry.
This blog discusses the correlation between the presence of IXPs and the growth of the domain name industry in African countries, highlighting the importance of local traffic exchange.
Key Findings on the Growth of IXPs and Impact on Africa
The study reveals several critical insights on the growth of IXPs and the impact of the Internet in the region:
- Increase in IXPs: The number of fully operational IXPs in Africa has grown from 36 in 26 countries in 2016 to 63 in 38 countries by 2023. This increase has significantly boosted local Internet performance and domain name registrations.
- Enhanced Connectivity: IXPs reduce latency, improve speeds, and lower costs by facilitating local data exchange. Countries with multiple IXPs, such as Kenya and Nigeria, have seen substantial improvements in Internet performance, supporting the growth of the domain name industry.
- Local Hosting: The presence of IXPs encourages the development of local data centers and hosting services. By mid-2022, Africa had more than 1.1 million kilometers of terrestrial fiber cables, enhancing connectivity and supporting the hosting of local content.
Correlation Between IXPs and Domain Name Growth
The study highlights a strong correlation between the presence of IXPs and the health of the domain name industry:
- Increased Registrations: Countries with well-established IXPs have higher rates of domain name registrations. For example, South Africa, with multiple IXPs, leads the continent with more than 1 million registered domains.
- Local Content Development: IXPs support local content hosting, which in turn drives demand for local domain names. This localized hosting reduces dependency on international bandwidth, making Internet services more affordable and reliable.
- Economic Benefits: The growth of IXPs and the domain name industry contributes to local digital economies by fostering entrepreneurship, supporting e-commerce, and creating jobs. The annual value of the African Domain Name System industry is estimated to be just under $1 billion.
Challenges and Opportunities
Despite the positive impact of IXPs, several challenges remain:
- High Internet Costs: High costs of Internet access continue to limit domain name registrations in many African countries. Efforts to reduce these costs are essential for further growth.
- Limited Digital Literacy: Increasing digital literacy and awareness about the benefits of local IXPs and domain names is crucial. Educational initiatives and awareness campaigns can help bridge this gap.
- Regulatory Support: Strong regulatory frameworks are necessary to support the development of IXPs and the broader Internet infrastructure. Policies that encourage investment in local Internet infrastructure can drive significant growth.