Cape Town - Microsoft, the world's biggest software company, and South African cellular operator MTN on Tuesday unveiled a project to offer cheap internet connections in Africa's biggest economy.

Microsoft chairperson Bill Gates told a leaders forum in Cape Town that the US company and MTN would work together to provide affordable options for consumers who purchase internet connectivity and a personal computer running Microsoft's Windows starter edition software.

The programme allows flexible terms through either the purchase of the PC and internet access on a fixed-term contract for a low monthly fee or through purchasing the PC and a month-to-month internet contract.

"Mobile connectivity has become a key driver of telecommunications growth across the continent and has paved the way for increased mobile access through convergence and mobile data and wireless applications," Gates said.

Gates said high connectivity costs remained a huge problem for Africa and other countries in the developing world but that he saw wireless broadband technology as the key to fixing the problem.

"For urban populations in Africa, the connectivity is very prohibitive, while in rural areas it is even more so because of the use of satellite equipment where it exists or it simply is not there.

"Developing wireless solutions is critical in easing this problem," he said.

The Cape Town forum, convened by Microsoft, discussed how Africa can use technology to improve its competitiveness and spark faster growth.

MTN is Africa's largest cellular operator.