This blog is the fifth 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 provides 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.
The 2023 Africa Domain Name Industry Study reintroduces the 'Country DNS Success Index' (CDSI) from the 2016 Africa DNS Market Study, a comprehensive tool developed to evaluate and rank African countries based on the health of their domain name ecosystems. The index uses eight critical parameters to assess each country’s domain name ecosystem and assigns a score. The CDSI serves as a valuable benchmarking tool, helping stakeholders understand the progress and challenges within the continent’s domain name industry. Let’s explore the key factors included in the index and the significant findings from the report.
Key Parameters of the CDSI
- Number of domains registered under the country code top-level domain (ccTLD) – Reflects the country’s usage and management of its ccTLD.
- Number of generic top-level domains (gTLDs) identified with African registrants – Measures how many gTLDs are linked to each country.
- Number of web pages indexed by Google – Serves as a proxy for online presence and content availability.
- Price of registration – Countries are ranked by lower registration fees, indicating affordability and accessibility.
- Number of registrars – Recognizes the role of registrars in fostering competition and user choice.
- Number of websites hosted locally – Local hosting enhances digital independence and strengthens the ICT ecosystem.
- Presence of Internet Exchange Points (IXPs) – Countries with active IXPs scored higher due to the role IXPs play in improving local Internet performance.
- Internet penetration rates – Reflects the percentage of a country’s population with Internet access, highlighting digital reach.
Findings from the 2023 Study
In the 2023 rankings, South Africa, Nigeria, Kenya, Tanzania, and Morocco led the continent, demonstrating strong performances across domain registrations, local hosting, and IXP presence. By comparison, in the 2016 Africa DNS Market Study, South Africa ranked overall highest of all countries according to the CDSI, followed by Kenya, Nigeria, Zimbabwe, and Tunisia.
Key factors contributing to their success included robust infrastructure, effective regulatory frameworks, affordable registration processes, and a high level of digital awareness. Reliable infrastructure supports widespread Internet access, while supportive policies, streamlined governance, and easy payment systems make domain registration more accessible. High levels of digital literacy further drive domain adoption, creating a strong foundation for a healthy and growing DNS ecosystem across these leading countries.
The study further revealed that countries with well-established IXPs and comprehensive local hosting capabilities were better positioned to thrive in the digital economy.
Implications and Opportunities for Growth
One critical insight from the study is the correlation between the presence of IXPs and overall DNS ecosystem health. Countries with active IXPs showed better connectivity and a more vibrant Internet industry. This finding highlights the need for targeted investments in infrastructure to improve local hosting and network connections.
The study also pointed out significant disparities between countries, with some struggling due to high registration costs, limited registrar options, and a lack of locally hosted content. Addressing these challenges could significantly improve the inclusivity and effectiveness of the African DNS industry.
Despite the challenges, the study emphasizes that there are significant growth opportunities in many countries, projecting an average annual growth of 12.4 percent in domain registrations across the continent. The study recommends focusing on developing local infrastructure, increasing digital literacy, and enhancing payment options to spur further growth.
The CDSI is not merely a reflection of the present successes but a proactive guide for the African digital ecosystem's stakeholders. It identifies effective strategies, areas needing improvement, and opportunities for countries to adopt best practices to enhance their domain name industries.
A significant innovation highlighted in the study is the proposed Trial Observatory for Africa. This initiative aims to create a dynamic platform for monitoring and updating key factors and indices essential for the growth and resilience of Africa's digital future. By enabling regular data collection and analysis, the proposed Trial Observatory would act as a continental mechanism to track progress, inform decision-making, and foster collaboration among policymakers, businesses, and technical communities.
The proposed Trial Observatory is a cornerstone for ensuring that Africa’s domain name landscape remains robust and adaptive, supporting a secure, inclusive, and thriving digital economy.