Africa telcos warn rising fuel costs threaten mobile connectivity and data prices

Mobile network operators across Africa are warning that rising fuel prices, driven in part by global energy market disruptions, are sharply increasing operating costs and could threaten the affordability and reliability of mobile calls and internet services across the continent.

The warnings come as telecom infrastructure remains heavily dependent on diesel-powered generators, particularly in rural and peri-urban areas where grid electricity is unreliable or unavailable.

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The GSM Association (GSMA), the global telecom industry body, said African operators are being disproportionately affected by fuel price volatility linked to geopolitical tensions in the Middle East, which have disrupted global oil supply chains and pushed up energy costs.

“Rising fuel costs and supply pressures are putting network operations at risk,” the GSMA said in a statement. It warned that in areas where digital access is already limited, fuel shortages and price spikes could disrupt essential communications, financial transactions and emergency services.

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Across the continent, telecom towers rely extensively on diesel to maintain uninterrupted service. The fuel powers base stations that keep mobile networks running during grid outages or in remote regions beyond electricity infrastructure.

In Kenya, major operators such as Safaricom and Airtel have raised concerns over the growing cost burden associated with powering network infrastructure.

Safaricom, East Africa’s largest telecom operator, reported using about 10.4 million litres of diesel in the financial year to March 2025 to power its base stations, up from 9.7 million litres the previous year, highlighting the scale of fuel dependence in network operations.

Industry players say any sustained increase in fuel prices directly translates into higher operational expenditure, raising the possibility of future upward pressure on mobile data and voice tariffs if costs cannot be absorbed.

Telecom companies across Africa have increasingly invested in hybrid energy systems, including solar-powered base stations and grid connections, to reduce reliance on diesel and mitigate exposure to fuel price shocks.

However, the transition remains uneven, with many remote sites still dependent on generators due to infrastructure gaps and unreliable electricity supply.

The GSMA has called on governments to classify telecom infrastructure as critical national infrastructure, arguing that uninterrupted connectivity is essential for economic activity, digital payments, emergency response systems and public services.

It has also urged policymakers to prioritise fuel supply stability for telecom operators and support investment in alternative energy solutions to reduce long-term dependence on diesel.

“Protecting network continuity is not a sector-specific concern, but a national development priority,” the organisation said, warning that disruptions to mobile networks could have wide-ranging economic consequences.

The issue comes amid broader inflationary pressures across African economies, where transport, energy and food costs have all been affected by global supply chain disruptions and fluctuating oil prices.

Analysts say telecom operators face a delicate balancing act: absorbing rising costs to maintain affordable services while investing in infrastructure upgrades needed to improve efficiency and resilience.

With mobile penetration and digital services now central to financial inclusion, commerce and communication across Africa, industry experts warn that sustained energy cost pressures could slow progress toward universal connectivity and deepen the digital divide, particularly in underserved regions.

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