Africa’s digital landscape is at a turning point. The 2023 Africa Domain Name Industry Study, commissioned by the Internet Corporation for Assigned Names and Numbers (ICANN) and published in May 2024, offers a deep dive into the continent’s Domain Name System (DNS) industry. Building on a 2016 baseline, this 204-page report examines the strengths, weaknesses, and opportunities across 54 African countries. With over 4.33 million ccTLD domains and 1.4 million gTLD registrations by African entities, the industry is valued at approximately $137 million annually. Yet, challenges like high costs and limited infrastructure hold back its full potential.
In this post, we’ll break down the study’s key findings, explore the hurdles facing the Africa Domain Name Industry, and highlight actionable recommendations to propel it forward—all while keeping it engaging and optimized for search engines.
The Current State of Africa’s DNS Industry
Africa’s DNS industry is growing fast, but it’s still a small player on the global stage. Here are the standout stats:
- Domain Growth: Since 2016, ccTLD domains have doubled to 4.33 million, while African entities hold 1.4 million gTLDs (mostly .COM). That’s a projected growth rate of 12.4% annually.
- Economic Value: The industry generates about $137 million yearly, with 74% of revenue concentrated in the top 10 countries like South Africa, Nigeria, and Kenya.
- Digital Divide: Internet penetration averages 43% across Africa—up from 29% in 2016—but varies wildly, from 7% in Eritrea to 85% in Kenya, compared to a global average of 68%.
South Africa leads the pack with a mature market, while countries like Nigeria and Kenya are in a steep growth phase. However, the top 10 ccTLDs hold 92% of all registrations, showing uneven development. Some countries even benefit from “domain hacks”—vanity domains registered by non-Africans—boosting numbers but not local impact.
Challenges Holding Back Progress
Despite the growth, the Africa Domain Name Industry faces significant roadblocks:
- High Costs: Africans pay about 4% of their monthly income for 1GB of data, double the Broadband Commission’s 2% affordability target. Domain registration fees also average $103 for ccTLDs versus $10 for .COM, pricing many out.
- Infrastructure Gaps: While fiber networks and 63 IXPs in 38 countries mark progress, broadband access remains patchy, especially outside urban centers. 41 countries host over 95% of their gTLDs offshore, missing local economic benefits.
- Digital Literacy: Low awareness and skills, plus a lack of local content in African languages, limit internet use and domain demand.
- Policy Barriers: Complex registration rules—like requiring local presence in 16 countries—and slow processes deter growth.
As the study notes, “high Internet access costs continue to be the biggest factor limiting usage,” a sentiment echoed by survey respondents who ranked price and infrastructure as top barriers.
Opportunities and Recommendations
The study doesn’t just highlight problems—it offers a roadmap for growth. Here’s what stakeholders can do:
- Boost Infrastructure: Expand fiber networks, IXPs, and data centers, especially in rural areas. Affordable systems like Starlink could connect remote regions.
- Cut Costs: Slash internet and domain registration fees to $5-$10 for ccTLDs, aligning with global norms to spark demand.
- Simplify Registration: Automate processes, remove restrictive rules (e.g., local presence mandates), and use alternative dispute resolution for IP issues instead of pre-registration checks.
- Promote Local Content: Governments should lead with e-services—think online tax filing in Kenya or South Africa—to drive demand. Content in local languages is key.
- Build Skills: Invest in digital literacy programs to empower more Africans online.
The study also proposes a Trial DNS Observatory to monitor progress, providing real-time data for stakeholders. Imagine a tool that tracks domain growth and internet trends across Africa—pretty game-changing, right?
Why This Matters
Sally Costerton, ICANN’s Interim President & CEO, sums it up perfectly: “This study is a testament to the collective effort and dedication to connect Africa and ensure it thrives as a dynamic participant in the global digital economy.” With the right investments, Africa’s DNS industry could leap from $137 million to a $1 billion ecosystem, driving jobs, innovation, and inclusion.
But it’s not just about numbers. A stronger DNS industry means more local businesses online, more government services accessible, and a louder African voice in the digital world.
Conclusion
The 2023 Africa Domain Name Industry Study reveals a continent brimming with digital potential but held back by familiar foes: cost, access, and awareness. By tackling these challenges head-on—through infrastructure upgrades, policy reform, and a push for local content—Africa can unlock a thriving DNS future.
Want the full scoop? Check out the complete report on ICANN’s site.