ARED is at the forefront of Africa’s digital revolution, delivering innovative, AI-powered infrastructure that combines storage, computing power, and Wi-Fi to bridge the gap in digital infrastructure in Africa while fostering economic growth and development. Their platform-as-a-service and digital infrastructure, are powered by AI-driven edge computing technology built for sectors like healthcare, education, and small businesses that need robust yet affordable tech infrastructure.
Their goal is to empower individuals and businesses in Africa to leverage the power of technology and drive positive change in their communities.
In a virtual interview with Henri Nyakarundi, ARED’s founder and CEO, he highlighted more on what there’s to know about ARED, and here’s what he had to say;
What inspired you to start ARED, and how did you identify the need for affordable digital infrastructure in Africa?
The inspiration for ARED came from a personal drive to tackle the energy and digital divide in Africa. Back in 2009, I saw the challenges firsthand, and it fueled my determination to make a difference. By 2013, we launched in Kigali, Rwanda with an innovative approach—creating a smart solar kiosk platform equipped with Wi-Fi. It was our first step in empowering communities by providing energy and digital access.
As we evolved, especially during the COVID-19 pandemic, we learned a crucial lesson: digitization was not just the future; it was a necessity. Many businesses in Africa lacked access to affordable digital infrastructure, and the existing options were costly and required payments in foreign currency. This was a major barrier for SMEs trying to digitize and grow.
This realization led us to shift our focus. We decided to sell the solar kiosk technology and concentrate entirely on digital infrastructure. We saw an opportunity to create a solution that combined Wi-Fi, storage, and compute power in a way that was both cost-effective and tailored to the needs of African businesses.
Our goal was simple, to provide SMEs with the digital tools they need to thrive in a rapidly changing world. By offering low-cost digital infrastructure and a suite of applications, we aimed to make digital transformation accessible and achievable for businesses across Africa.
How does ARED’s AI-powered edge computing technology differ from traditional data center models, and what advantages does it offer?
When we started ARED, we saw a massive gap in digital infrastructure across Africa. Traditional data centers were these large, distant fortresses catering mostly to big corporations, and if you were an SME or an individual looking to tap into digital transformation, you were almost left out of the game. The costs were high, the services were designed for large-scale operations, and payments were in foreign currency, making it even more inaccessible. We knew there had to be a better way.
That’s when the idea of AI-powered edge computing came into play. Imagine bringing the power of a data center right to the edge, where it’s needed most—directly where businesses are operating, especially for SMEs. We wanted to flip the script to the traditional model by creating a solution that’s local, affordable, and incredibly efficient.
Now, let me tell you how we did this differently. Instead of building a massive centralized hub, we focused on building clusters of edge devices. Picture this: instead of sending data miles away to a central server, our edge units work together right where the action is happening. They’re like a team, sharing resources and processing data in real time. This clustering means faster responses, reduced latency, and a system that can adapt and grow with the business.
One of the coolest parts about our edge model is its affordability and flexibility. SMEs don’t have the budget for a large data center setup, and shouldn’t have to. With ARED, we bring Wi-Fi, storage, and compute power in one package, right on the edge. It’s like having a mini data center at your fingertips without the massive price tag. This gives businesses the tools to digitize and innovate without breaking the bank.
We also wanted to tackle another issue: security and privacy. By keeping data processing local, sensitive information doesn’t have to travel to a far-off server, reducing the risks of breaches. Plus, this localized processing means businesses can operate even if the internet is down, which is a game-changer in areas with unreliable connectivity.
In short, ARED’s AI-powered edge computing isn’t just about technology; it’s about giving power back to the people and businesses that need it most. It’s about creating a system that’s affordable, scalable, and incredibly versatile, bringing the best of digital infrastructure right to the doorstep of SMEs across Africa.
Can you elaborate on how ARED’s infrastructure enables offline access to digital services, especially in areas with poor or expensive internet connectivity?
When we designed ARED’s system, we were thinking about all those places where internet access is either spotty or just too expensive to rely on every day. We wanted to make sure that digital tools and services weren’t just a privilege for those in urban centers with perfect connectivity but something everyone could access, no matter where they were.
Think of our solution like this: instead of relying on the internet for every single task, we bring the digital world directly to you. Our edge devices act like a mini server hub of internet services, right there on the spot. So, even if there’s no internet connection, people can still tap into essential applications and information just by connecting to our local Wi-Fi. It’s like having a little piece of the internet that’s always there for you, rain or shine, signal or no signal.
Here’s the magic: everything is processed and stored locally. Imagine you’re running a small shop using our point-of-sale system. Normally, you might worry about the internet going down and not being able to process sales, but with ARED, all the data and apps are on the device itself. So, you keep selling and running your business smoothly, and when the internet comes back, everything syncs up automatically.
This isn’t just about convenience—it’s about leveling the playing field. We’re saying to small businesses, schools, and community centers, “Hey, you don’t need to be left out just because the internet is unreliable.” We’re making digital tools available where they’re needed most, without the hefty price tag or dependence on constant connectivity. It’s about empowering communities to thrive in a digital world, even when the digital world can’t always reach them.
See also: Ministry of ICT, ISPs have plans to reduce the cost of internet, says Ps. Aminah Zawedde
ARED’s approach seems focused on cost efficiency and accessibility. How do you ensure that your services remain affordable for communities and businesses across Africa?
What we realized early on was that most companies building data centers were focused on the big players—banks, telecoms, and governments. They were solving problems for the giants, but the little guys, the SMEs, were being left behind. It was like there was this massive digital wave happening, but the majority of businesses couldn’t catch it because they didn’t have the right surfboard.
We saw this and thought, “What if we could change that?” What if we could provide low-cost digital infrastructure that made all those critical applications more affordable and accessible? If we could do that, we knew adoption would skyrocket. SMEs spend hundreds of dollars just to set up basic things like security cameras, business operation apps, POS systems, and routers. It’s a huge financial strain, and it means only a few can afford to go digital.
So, our approach was to take all those pieces—security, point-of-sale, Wi-Fi—and bring them together in one solution. By removing the hardware cost and centralizing these applications through our edge infrastructure, we can offer this whole suite of services for less than $100 a day. Imagine the possibilities: a small business can now have everything it needs to operate efficiently and securely, without having to invest in multiple expensive devices or worry about managing them all.
It’s a win-win. SMEs get the tools they need to grow and compete, and ARED gets to be part of their success story. This isn’t just about technology; it’s about leveling the playing field, making sure that digital transformation isn’t reserved for the big corporations but is accessible to every business, no matter its size.
Could you share some success stories or examples where your technology has made a significant impact?
We’ve had some incredible success stories that showcase the power of our technology. One of our proudest partnerships is with GVA Rwanda and MTN Rwanda on a public Wi-Fi project. The goal here was to give citizens access to key digital applications and entertainment offline, without the need for constant internet connectivity. It’s about making digital resources available to everyone, even in places where connectivity is a challenge. This project has been a game-changer in providing people with educational content, government services, and even some light-hearted entertainment, right at their fingertips.
We also worked with MTN Rwanda to enhance some of their service centers. One of the key solutions we provided was a queuing system. You know how it is—waiting in long lines can be a headache for customers and a challenge for businesses to manage. Our solution helped streamline the process, making it more efficient and improving the overall customer experience.
Another exciting project we’re working on is a POC with a bus company. Here, we’re using our edge computing technology to provide valuable data insights through security cameras. By processing this data on the edge, we’re able to offer real-time analytics using AI tools. It’s not just about security; it’s about understanding passenger flow, optimizing routes, and enhancing overall service.
And then there’s BK Arena. We’re using our edge infrastructure there to enhance the visitor experience and operational efficiency. Whether it’s managing large crowds, providing real-time analytics, or delivering digital services, our technology is helping the arena run smoothly and offer a better experience for everyone who walks through its doors.
Each of these projects shows how versatile and impactful our technology can be. It’s not just about providing a service; it’s about transforming the way businesses and communities operate, making digital resources more accessible and useful in everyday life.
The marketplace for innovation seems to be a key part of ARED’s strategy. How does this platform empower SMEs, and what are some of the most popular applications?
ARED’s core business is all about the infrastructure layer. We built this robust, reliable edge infrastructure to showcase its potential, but the real magic happens when we open it up to third-party tech companies and developers. Our vision is to create a whole new ecosystem where these innovators can develop and deploy their applications on our edge network.
We’re planning to launch this marketplace in 2025, right after we’ve deployed 200 edge gateways across Rwanda and Uganda. The idea is simple but powerful: by giving developers access to our infrastructure, they can create applications tailored to the unique needs of African businesses and communities. It’s not just about offering tools; it’s about creating revenue-generating opportunities. And with our revenue-sharing model, it’s a win-win. Developers get a platform to distribute their apps, SMEs gain access to a suite of affordable digital solutions, and we all contribute to building a vibrant digital economy.
To showcase the potential of our infrastructure, we’ve already developed some applications. For instance, our point-of-sale system helps small retailers streamline their operations. We also have security and queue management solutions to demonstrate how edge computing can be used effectively in real-world scenarios. But our goal isn’t to monopolize the app space; it’s to open up our infrastructure so that other developers can bring their creative solutions to the table.
By doing this, we aim to foster a new type of digital infrastructure that’s specific to Africa, one that understands the unique challenges and opportunities on the continent. This marketplace will drive innovation and create new revenue streams and job opportunities, helping to grow the tech ecosystem inclusively and sustainably.
With ARED’s plans to deploy 20,000 edge gateways across Africa in the next five years, what challenges do you foresee in scaling this infrastructure?
Scaling up to 20,000 edge gateways is an exciting goal for us, but it comes with its set of challenges. One of the biggest hurdles is finding the right partners on the ground. We can’t do this alone—local partnerships are crucial for understanding and navigating the unique landscapes of each market. We’re using a licensing and partnership model to expand, but identifying and securing those key partners who share our vision and commitment is no small feat.
We’ve already selected the six markets we want to focus on: Rwanda, Uganda, Kenya, Nigeria, South Africa, and Ghana. Each of these regions has its own unique set of challenges and opportunities, from regulatory environments to market readiness. Getting our foot in the door means we need to build strong relationships and prove the value of our technology in real-world scenarios.
See also: ARED plans to expand its impact to Uganda, starting by launching a proof of concept in Jan 2025
Another big challenge is driving the adoption of this new technology. We know we have a game-changing solution, but introducing something new always requires a bit of education and proof of concept. It’s not just about installing the infrastructure; it’s about showing people how it can revolutionize their businesses and communities. We’re prepared to invest time and effort into this educational process because we believe in the transformative power of our technology.
And then there’s the scale itself—20,000 gateways is our minimum target before we start our exit process and consider selling the company. Hitting this number means everything has to run smoothly, from manufacturing to deployment to ongoing support. It’s a complex operation, but we’ve built a solid plan and are ready to tackle these challenges head-on.
Ultimately, it’s about persistence and building trust. We know there will be obstacles, but with the right partners, a clear strategy, and a lot of passion for what we do, we’re confident we can make this vision a reality.
Could you share more about your plans to launch in Uganda and the key objectives of this initiative?
We’re looking forward to our launch in Uganda. We’re currently in talks with a local partner and a telecom company, aiming to make our entry by mid-2025. Our main goal is to deploy 1,000 edge gateways, setting the foundation to become the leading digital infrastructure provider in the market.
The focus is on empowering SMEs and communities with affordable, accessible digital tools. We want to establish a strong presence in Uganda, proving that our model can drive digital transformation and create new opportunities for growth and innovation.
How do you see ARED’s AI-driven infrastructure contributing to Africa’s broader digital transformation in the coming years?
The lack of accessible digital infrastructure has been a major roadblock to digital transformation in Africa, especially for SMEs. It’s like trying to build a skyscraper without a solid foundation. We believe there isn’t a one-size-fits-all solution, but rather an approach that caters to the unique needs of African businesses and communities.
ARED’s AI-driven infrastructure is designed to fill this gap. By providing affordable, localized digital tools, we’re enabling SMEs to adopt and integrate technology into their operations. This means faster, more efficient processes, better data insights, and an overall boost in competitiveness.
In the broader picture, we see our edge infrastructure serving as a catalyst for innovation across various sectors. By decentralizing digital access and making it more affordable, we’re not just helping individual businesses; we’re creating an environment where digital transformation can thrive. This has the potential to reshape how businesses operate, how services are delivered, and how communities engage with technology in Africa.
In the coming years, as more SMEs and communities tap into this infrastructure, we believe it will drive significant change—making digital transformation not just a possibility but a reality for millions across the continent.
What are ARED’s long-term goals, and how do you envision the company evolving as it continues to drive digital transformation across the continent?
Our long-term vision for ARED is to be a catalyst for change across Africa. We see ourselves not just as a company, but as a movement that’s driving digital transformation from the ground up. Our dream is to create a world where access to digital tools and services isn’t a privilege but a right—where every small business, and every community, no matter how remote, has the chance to participate in the digital economy.
In the next few years, we’re focused on scaling our infrastructure, reaching as many businesses and communities as possible. Our edge gateways are just the beginning. We want to foster an ecosystem where innovation thrives, where developers and tech companies can build on our platform to create solutions that directly address the unique challenges faced by Africans.
Ultimately, our goal is to build something so impactful that it can stand on its own. Our long-term plan is to scale the company to a point where it becomes an attractive acquisition for a larger player who shares our vision and commitment to Africa’s growth. We believe that by creating this robust, scalable digital infrastructure, we can provide immense value—not just for ourselves but for the entire continent.
It’s an ambitious goal, but we’re driven by the belief that technology can and should be a force for good. As we continue to evolve, we’re committed to staying true to our mission: making digital transformation a reality for all, and setting a new standard for what’s possible in Africa.
Is there anything else that you would love to share?
Africa needs to take the reins of its innovation. Even in 2024, we often look outside for solutions, relying on foreign tech entities to solve problems that we are more than capable of tackling ourselves. It’s time we change that narrative. We’ve made waves in the fintech revolution, showing the world that we can lead in tech innovation. But we’re more than just fintech.
Let’s prove that Africa can be a hub of creativity and technological prowess. By developing our solutions, we can move toward true economic independence and ensure we have a seat at the global table—not just as consumers, but as producers and innovators. It’s about time we shape the conversation, rather than just being part of it.
