The GSM Association (GSMA) has asserted in its latest report that sub-Saharan Africa has been the world’s fastest growing mobile market over the past half-decade. This growth has been recorded in both unique mobile subscribers and mobile connections. With such impressive growth nearing no end, the region is expected to lead the global growth ladder through 2020 and surpass a 500 million subscriber base.
In order of size, the six largest mobile markets are Nigeria, South Africa, Ethiopia, Kenya, Democratic Republic of Congo and Tanzania. These countries account for over half of the region’s unique mobile subscriber base.
A number of growth expectations are expected within the next half-decade. First, the number of mobile connections, which stood at 608 million in June 2014, is expected to grow to 975 million by 2020. 3G networks are also expected to grow from 17 percent to at least 50 percent while 4G should account for 4 percent total connections within the same time frame.
Regarding industry contribution to economic growth, the mobile market has shown steady and valuable economic potential. According to the report, the mobile industry contributed $75 billion to overall GDP in the region, an amount equivalent to 5.4 percent of overall GDP. By 2020, this figure should climb to 6.2 percent of regional GDP, a direct contribution of $104 billion.
“The mobile industry has transformed the lives of millions of people across Sub-Saharan Africa, providing not just connectivity but also an essential gateway to a wide range of healthcare, education and financial services,” said Anne Bouverot, Director General of the GSMA.
There is enormous potential embedded in a well connected sub-Saharan Africa, potential that can transform living standards of not only urban, but rural dwellers. On the global front, the connected devices market will open-up critical new revenue streams, facilitate new business models, drive efficiencies and improve the way existing services across many different sectors are delivered. In total, the positive impact on the global economy could be worth as much as $4.5 trillion per annum, according to the GSMA.
“The world of 2020 will offer a range of life enhancing services powered by a vibrant mobile ecosystem that connects the physical and digital worlds. The benefits of mobility will spread beyond communications to provide dramatic improvements in sectors such as energy efficiency, security, health and education,” the report reads.
The Africa of 2020 will be a highly sophisticated and productive continent driven by an energetic young population, a significant proportion of middle-income citizens, more mobile connectivity and services than ever before, and the internet of things.
By Emmanuel Iruobe
