Mobile Services Contribute Over $150b To African Economy

While more than half a billion people across Africa are now subscribed to mobile services as the continent continues to migrate rapidly to mobile broadband networks, , mobile ecosystem contributes more $150 billion in economic value of African economy, latest report released at the just concluded GSMA Mobile 360 – Africa event held in Dar es Salaam, has indicated. The new report, ‘The Mobile Economy: Africa 2016’ is authored by GSMA Intelligence, the research arm of the GSMA. The report also highlighted the increasing contribution of Africa’s mobile industry to the regional economy, including employment and public funding, and mobile’s role a platform for digital and financial inclusion.

“More than half a billion people across Africa are now subscribed to a mobile network, providing them not just with connectivity but a gateway to a range of other essential services in areas such as digital identity, healthcare and financial services,” Mats Granryd, Director General, GSMA, said, adding that, “The rapid move to mobile broadband networks is also unlocking new opportunities for consumers, businesses and governments, growing an ecosystem that last year added more than $150 billion in value to Africa’s economy.”

“The positive transformational impact of mobile is being felt more profoundly in Africa than anywhere else in the world; Africa’s mobile industry is at the forefront of helping to deliver the United Nations’ Sustainable Development Goals, Granryd, said, adding that , “We are focused on creating a better future for citizens and businesses across Africa, providing access to essential information and services, improved employment and economic opportunities, and greater productivity and competitiveness.”

Network investments, smartphones drive mobile broadband adoption The report further revealed that there were 557 million unique mobile subscribers across Africa at the end of 2015, equivalent to 46 per cent of the continent’s population, making Africa the second-largest – but least penetrated – mobile market in the world. According to the report, Africa’s three largest markets – Egypt, Nigeria and South Africa together accounted for around a third of the total subscriber base. The number of unique mobile subscribers is forecast to reach 725 million by 2020, accounting for 54 per cent of the expected population by this point.

African mobile subscribers, the report added are rapidly migrating to mobile broadband networks and services, a result of ongoing network rollouts and the increasing availability of affordable mobile broadband devices and tariffs. ”Mobile broadband (3G/4G) accounted for just over a quarter of total connections at the end of 2015, but is expected to account for almost two-thirds by 2020. “By mid-2016, there were 72 live 4G networks in 32 countries across Africa, half of which have launched in the last two years. Meanwhile, the number of smartphone connections[iii] in Africa is forecast to more than triple over the next five years, rising from 226 million in 2015 to 720 million by 2020”, the report revealed.

Mobile’s contribution to African GDP, Jobs and public funding to Increase

“The use of mobile technologies and services across Africa generated $153 billion in economic value last year, equivalent to 6.7 per cent of the region’s GDP. This contribution is expected to increase to $214 billion by 2020 (7.6 per cent of expected GDP) as countries in Africa continue to benefit from the improvements in productivity and efficiency brought about by increased take-up of mobile services. “Africa’s mobile ecosystem also supported 3.8 million jobs in 2015 and made a $17 billion contribution to the public sector via general taxation. The number of jobs supported is forecast to rise to 4.5 million by 2020, while the tax contribution is expected to increase to $20.5 billion”, the report said.

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