Projecting the daily loss over a three-day period, the total economic loss in West Africa could reach over $6.66 billion USD. It’s important to remember that this is an estimate, and the actual impact could be higher or lower depending on various factors.
The recent undersea cable cut which caused widespread internet outages in West Africa could cost the region a staggering $6.66 billion USD. This figure is based on projections from AI models that take into account the estimated contribution of the internet to West Africa’s GDP.
While internet service providers (ISPs) across the region have implemented temporary fixes using alternative routes and rate limiting, the situation remains challenging. Repairing the undersea cable is expected to take up to two weeks, according to MainOne, a leading telecoms provider in West Africa.
The cause of the damage is currently unknown. Some sources speculate that Iranian-backed Houthi rebels might have targeted a major cable leading to Africa, causing cascading damage to the entire network and resulting in over five breaks, particularly off the coast of Ivory Coast.
A closer look at the internet’s contribution to West Africa’s GDP reveals just how significant this outage is. Studies suggest that the internet contributes around 15% to the region’s GDP, highlighting the substantial role internet-based activities play in the economy.
Considering a 15% contribution to a total West African GDP of $1.8 trillion (2023 data), a single day of internet outage could lead to an estimated daily loss of $2.22 billion USD. This figure is derived by multiplying the GDP by the internet contribution percentage and then dividing by the number of days in a year.
Projecting the daily loss over a three-day period, the total economic loss in West Africa could reach over $6.66 billion USD. It’s important to remember that this is an estimate, and the actual impact could be higher or lower depending on various factors.