‘The Mobile
Economy – Sub-Saharan Africa 2015’ study finds that the US$102 billion economic
contribution in 2014 was equivalent to 5.7 per cent of the region’s GDP.
Mobile operators directly contributed US$31 billion,
representing 1.7 per cent of GDP. This economic contribution is set to increase
over the coming years as mobile operators continue to extend connectivity to
unconnected populations across the region and roll out new mobile broadband
networks and services.
The industry is forecast to contribute US$166 billion
in value to the region by 2020, equivalent to 8 per cent of expected GDP by
this point.
“The
mobile industry remains a key driver of economic growth and employment in
Sub-Saharan Africa, making a vital contribution given the population growth and
high unemployment levels seen in many countries in the region,” said Alex
Sinclair, Acting Director General and Chief Technology Officer at the GSMA.
“Despite revenue and margin pressures, local mobile operators continue to
invest heavily to extend network coverage to serve unconnected communities and
accelerate the migration to high-speed 3G/4G mobile broadband networks. Mobile
technology is also playing a central role in Sub-Saharan Africa by addressing a
range of socio-economic challenges, particularly digital and financial
inclusion, and enabling access to vital services such as education and
healthcare.”
The World’s Fastest-Growing Mobile Region
It
is forecast that there will be 386 million unique mobile subscribers in
Sub-Saharan Africa by the end of this year, equivalent to 41 per cent of the
region’s population.
The region’s subscriber base has grown by 13 per cent
a year (CAGR), on average, during the first half of this decade (2010 to 2015),
growing at more than twice the rate of the global average (6 per cent) during
this period.
The region overtook Latin America in 2014 to become
the world’s third-largest mobile subscriber market, behind only Asia Pacific and
Europe. The number of unique mobile subscribers in Sub-Saharan Africa is
forecast to surpass half a billion (518 million) by 2020, representing almost
one in two (49 per cent) of the region’s population by this point.
Total mobile
connections in
Sub-Saharan Africa are on track to reach 722 million by year-end. Mobile
broadband (3G/4G) will account for almost a quarter of connections this year,
but will increase to 57 per cent by 2020, driven by expanding mobile broadband
network coverage and falling device costs.
Commercial
3G networks have been launched in 41 countries across Sub-Saharan Africa as of
June 2015, while 4G networks have been launched in 23 countries.
Investment
in these high-speed networks is resulting in a corresponding growth in
consumers using their devices to access the internet; almost a quarter (23 per
cent) of the Sub-Saharan African population will be using the mobile internet
this year, a figure forecast to rise to 37 per cent by 2020. Mobile is seen as
the primary means of accessing the internet in a region where fixed-line
infrastructure is severely limited.
The increasing availability of
mobile broadband networks, alongside the introduction of affordable mobile data
tariffs and falling device prices, has led to a surge in smartphone use.
The
smartphone adoption rate has doubled over the last two years and now accounts
for one in five connections, though this is still half the global adoption
average (40 per cent). It is predicted that regional smartphone connections will reach 540 million by 2020,
accounting for half of total connections by that point. The report notes that
the average selling price (ASP) of smartphones has fallen significantly in most
regional markets, with an increasing number of models now available in the
sub-US$100 price range.
Investing
In Jobs, Networks and Innovation
In 2014, the mobile ecosystem
directly employed approximately 2 million people in Sub-Saharan Africa, with
the majority working in the distribution and retail sectors and approximately
325,000 employed by mobile operators. A further 2.4 million jobs were
indirectly supported as result of the demand generated by the mobile sector,
bringing the total to 4.4 million.
It is forecast that the industry will grow
to support more than 6 million jobs by 2020. The mobile ecosystem also made a
contribution to the public finances of the region’s governments via general
taxation of approximately US$15 billion in 2014.
Mobile
operators in the region invested US$9 billion in network infrastructure
development in 2014, a 16 per cent increase on the amount invested in 2013. The
ongoing investment in mobile broadband networks will see capital investments
reach US$13.6 billion by 2020.
The report highlights how mobile
operators are working on innovative solutions to expand network coverage to
underserved populations in rural and geographically remote areas, and to tackle
the barriers to mobile phone adoption, including affordability and digital
literacy.
It also indicates that mobile operators, governments and
international development organisations have been working on a range of
mobile-based solutions to address a variety of social challenges in the region,
many of which arise from lack of access to essential services, such as basic
education and health.
“Mobile is having a hugely positive
and transformative impact across Sub-Sahara Africa, but future progress will
depend on governments working with the industry to provide a regulatory
environment that encourages investment and innovation,” added Alex Sinclair.
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