The Potential of Starlink’s Launch in Sierra Leone and its Impact on Web3 Adoption

Introduction

Sierra Leone, a West African nation with a population of approximately 7.8 million, faces significant challenges in terms of internet connectivity. The country’s internet penetration rate is one of the lowest globally, with only about 15% of the population having access to the internet. This digital divide hampers economic growth, education, and overall development. Starlink, the satellite Internet network of the American company SpaceX, announced on Tuesday June 11 that its services are now available in Sierra Leone. This is the ninth African country, the hundredth globally, to benefit from the commercial services of billionaire Elon Musk’s company. The launch of Starlink, SpaceX’s satellite internet constellation, could revolutionize internet access in Sierra Leone, potentially driving the adoption of Web3 technologies. This article explores the potential impact of Starlink’s launch on Sierra Leone and how improved internet connectivity can accelerate Web3 adoption, using real-world practical examples and case studies.

According to Starlink, the service will cost 1,020 leones ($45.4) per month with a one-time hardware cost of 7,860 leones ($350). Deliveries are currently limited to the towns of Bo, Kenema, Freetown and Makeni. “ In accordance with the Telecommunications (Subscriber Identification and Registration) Regulations 2020, customers in Sierra Leone must register with Starlink before the Starlink service can be activated. In the future, customers will be required to submit a copy of a photo ID ,” the company added.

It was in June 2023 that Starlink obtained approval from the authorities to launch its high-speed satellite Internet services in Sierra Leone. The company is continuing its expansion in Africa as part of SpaceX’s ambition to bring broadband everywhere on the planet, including remote and landlocked areas, therefore difficult to access for mobile operators’ terrestrial networks. On the continent, the company is already present in Nigeria, Rwanda, Mozambique, Kenya, Malawi, Benin, Zambia and eSwatini.

The advent of Starlink in Sierra Leone should notably make it possible to improve the quality and coverage of the Internet there. The country had 2.7 million subscribers to Internet services (mobile and fixed) in January 2024, according to statistics from the DataReportal data platform. These figures represent a penetration rate of 30.4%. The service is also expected to help strengthen market competition and accelerate the achievement of the government’s digital transformation ambitions

Starlink: A Game Changer for Internet Connectivity

Starlink aims to provide high-speed, low-latency internet access to underserved and remote areas worldwide through a constellation of low Earth orbit (LEO) satellites. Unlike traditional satellite internet, which relies on geostationary satellites positioned at high altitudes, Starlink’s LEO satellites orbit closer to the Earth, significantly reducing latency and improving connection speeds. For Sierra Leone, where internet infrastructure is limited and often unreliable, Starlink could be a game-changer. The country’s mountainous terrain and underdeveloped infrastructure make it difficult to lay fiber-optic cables and establish terrestrial networks. Starlink’s satellite-based approach bypasses these challenges, offering a viable solution for widespread internet coverage.

An Overview of Web3 Technologies:

Web3 represents the next generation of the internet, characterized by decentralized technologies such as blockchain, decentralized finance (DeFi), non-fungible tokens (NFTs), and decentralized applications (dApps). Web3 aims to create a more transparent, secure, and user-centric internet by eliminating intermediaries and giving users control over their data and digital assets. The adoption of Web3 technologies relies heavily on internet accessibility and connectivity. In regions with limited internet access, the potential of Web3 remains largely untapped. Improved connectivity through initiatives like Starlink could unlock new opportunities for Web3 adoption in Sierra Leone.

Impact of Starlink on Web3 Adoption in Sierra Leone

One of the most promising aspects of Web3 is decentralized finance (DeFi), which offers financial services such as lending, borrowing, and trading without traditional intermediaries like banks. In Sierra Leone, where a significant portion of the population is unbanked or underbanked, DeFi can provide accessible financial services to those who are excluded from the traditional financial system. With improved internet connectivity through Starlink, more Sierra Leoneans can access DeFi platforms. For example, platforms like Aave, Compound, and Uniswap enable users to lend and borrow cryptocurrencies, earn interest, and trade assets directly from their digital wallets. This can empower individuals and small businesses with financial tools previously unavailable to them.

Case Studies

M-Pesa in Kenya

M-Pesa, a mobile money service launched in Kenya, demonstrates the transformative power of improved connectivity on financial inclusion. With the widespread availability of mobile phones and internet access, M-Pesa has enabled millions of Kenyans to perform financial transactions, pay bills, and access microloans without a traditional bank account. Similarly, Starlink’s internet connectivity could facilitate the adoption of DeFi platforms in Sierra Leone, promoting financial inclusion and economic growth.

Web3 technologies offer new avenues for entrepreneurship and innovation. With blockchain-based platforms, individuals can create, sell, and trade digital assets such as NFTs. NFTs represent ownership of unique digital items, including art, music, and virtual real estate. For artists and creators in Sierra Leone, NFTs can provide a global marketplace to showcase and monetize their work. Improved internet connectivity through Starlink can enable Sierra Leonean entrepreneurs to participate in the global digital economy. Platforms like OpenSea, Rarible, and Mintable allow creators to mint and sell NFTs, reaching a global audience without intermediaries. This can drive economic empowerment and cultural exchange.

Axie Infinity in the Philippines

Axie Infinity, a blockchain-based game, has gained popularity in the Philippines, where players earn cryptocurrency by breeding and battling digital creatures called Axies. Many players have turned Axie Infinity into a full-time job, earning significant income in a country with high unemployment rates. This demonstrates how Web3 technologies can create new economic opportunities for individuals in developing countries. With Starlink’s connectivity, similar opportunities could emerge in Sierra Leone, enabling digital entrepreneurship and economic growth.

Blockchain technology, a core component of Web3, offers enhanced transparency and traceability in supply chains. In Sierra Leone, where the agricultural sector plays a vital role in the economy, blockchain can ensure the authenticity and quality of products, reduce fraud, and enhance trust between producers and consumers. With Starlink’s internet connectivity, farmers and producers in remote areas can access blockchain-based supply chain solutions. For example, platforms like IBM Food Trust and Provenance enable the tracking of products from farm to table, ensuring transparency and reducing food fraud. This can improve market access for Sierra Leonean farmers and boost the country’s agricultural exports.

Blockchain in the Cocoa Industry

The cocoa industry in Ghana and Côte d’Ivoire has leveraged blockchain technology to improve supply chain transparency. By recording each step of the cocoa production process on a blockchain, stakeholders can verify the origin and quality of cocoa beans. This has increased trust among consumers and boosted the market value of blockchain-certified cocoa. Similarly, Starlink’s connectivity can facilitate the adoption of blockchain solutions in Sierra Leone’s agricultural sector, promoting transparency and market access.

Web3 technologies require a skilled workforce with knowledge of blockchain, smart contracts, and decentralized applications. Improved internet connectivity through Starlink can enhance access to online education and skill development resources, enabling Sierra Leoneans to acquire the necessary skills for Web3 adoption. Online platforms like Coursera, Udacity, and Khan Academy offer courses on blockchain technology, coding, and digital entrepreneurship. With Starlink’s internet connectivity, individuals in Sierra Leone can access these educational resources, bridging the skills gap and fostering a knowledgeable workforce for the Web3 economy.

Andela in Africa

Andela, a company that trains software developers in Africa and connects them with global tech companies, has demonstrated the potential of online education and remote work. Andela has trained thousands of developers in countries like Nigeria, Kenya, and Uganda, providing them with job opportunities in the tech industry. With improved internet connectivity through Starlink, Sierra Leone can replicate similar initiatives, empowering its youth with the skills needed for the Web3 economy.

Challenges and Considerations

• The cost of Starlink’s service may be prohibitive for many Sierra Leoneans. Ensuring affordable access to satellite internet will be crucial for widespread adoption. Partnerships with the government, NGOs, and international organizations can help subsidize the cost and make Starlink more accessible to underserved communities.
• Improved internet connectivity alone is not sufficient for Web3 adoption. Digital literacy programs will be essential to educate the population about using the internet safely and effectively. Initiatives to promote digital literacy and cybersecurity awareness can help maximize the benefits of improved connectivity.
• The adoption of Web3 technologies requires a supportive regulatory framework. Policymakers in Sierra Leone need to create an enabling environment for blockchain and cryptocurrency innovations while ensuring consumer protection and mitigating risks. Collaborative efforts between the government, private sector, and international organizations can help develop appropriate regulations.

Conclusion

The launch of Starlink in Sierra Leone holds tremendous potential to bridge the digital divide and accelerate the adoption of Web3 technologies. Improved internet connectivity can enhance financial inclusion, empower digital entrepreneurs, strengthen supply chain transparency, and advance education and skill development. Real-world examples from other countries demonstrate the transformative impact of improved connectivity on economic growth and innovation. To fully realize these benefits, stakeholders must address challenges related to affordability, digital literacy, and regulatory frameworks. By fostering a collaborative approach, Sierra Leone can leverage Starlink’s connectivity to unlock new opportunities in the Web3 economy, driving sustainable development and improving the quality of life for its citizens.

Author

Ivan Prince Benjamin