[July 17, 2018] |
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More Than Half of Sub-Saharan Africa to Be Connected to Mobile by 2025, Finds New GSMA Study
More than half the population of Sub-Saharan Africa will be subscribed
to a mobile service by 2025, according to the latest edition of the
GSMA's (News - Alert) Mobile Economy report series, published at the GSMA 'Mobile 360 -
Africa' event being held in Kigali this week. The new report forecasts
that there will be 634 million unique mobile subscribers1
across Sub-Saharan Africa by 2025, equivalent to 52 per cent of the
population, up from 444 million (44 per cent) at the end of last year.
The report also calculates that the mobile ecosystem will add more than
$150 billion in value to Sub-Saharan Africa's economy by 2022,
equivalent to almost 8 per cent of regional GDP.
"For many citizens across the region, particularly those living in rural
areas, a mobile phone is not just a communications device but also the
primary channel for getting online and a vital tool for improving their
lives," commented John Giusti, Chief Regulatory Officer at the GSMA.
"More needs to be done to extend connectivity to the remaining
unconnected and underserved populations across Sub-Sahara Africa, but
this will require a focus on long-term industry sustainability that can
only be achieved through investment-friendly policies and supportive
regulatory frameworks."
Meeting the Affordability Challenge of a Youthful Population
Sub-Saharan Africa has been the world's fastest-growing mobile region in
recent years but subscriber growth is slowing as the industry faces the
challenges of affordability and a youthful population. The region's
current mobile penetration rate (44 per cent of the population) is
significantly below the global average of 66 per cent. Further,
according to the World Bank, around 40 per cent of the population in the
region are under the age of 16, a demographic segment that has
significantly lower levels of mobile ownership than the population as a
whole.
However, despite these challenges, smartphone adoption continues to
increase rapidly thanks to lower device costs, which is serving to
accelerate migration to 3G/4G mobile broadband networks and services.
Today's report predicts that mobile broadband will account for 87 per
cent of mobile connections2 in Sub-Saharan Africa by 2025, up
from 38 per cent in 2017. Moreover, nearly 300 million new subscribers
are expected to use their devices to access mobile internet services
over the next seven years.
A Growing Contributor to Economic Growth, Tech nnovation and the SDGs
Last year, mobile technologies and services accounted for 7.1 per cent
of GDP across Sub-Saharan Africa, a contribution that amounted to $110
billion of economic value added3. By 2022, the region's
mobile economy is forecast to generate more than $150 billion (7.9 per
cent of GDP) of economic value as countries continue to benefit from
improvements in productivity and efficiency, particularly due to the
increase in mobile internet adoption. The region's mobile ecosystem also
supported 3 million jobs in 2017 and contributed almost $14 billion to
the funding of the public sector in the form of general taxation as well
as sector-specific levies on the consumption of mobile services.
The report also includes examples of how mobile networks and services
are playing a key role in delivering the UN's Sustainable Developments
Goals (SDGs)4, as well as supporting a fast-growing tech
startup ecosystem. Many tech startups in Africa now use mobile as the
primary platform to create solutions that address a range of
socioeconomic challenges.
"Sub-Saharan Africa's mobile industry is showing strong progress in
achieving the targets of the SDGs, predominantly through increased
connectivity and access to information, but also through the delivery of
services, such as mobile money, that increase productivity, improve
well-being and reduce poverty," added Giusti.
The new report, 'The Mobile Economy: Sub-Saharan Africa 2018', is
authored by GSMA
Intelligence, the research arm of the GSMA. To access the full
report and related infographics, please visit: www.gsma.com/mobileeconomy/sub-saharan-africa/.
-ENDS-
About the GSMA
The GSMA represents the interests of mobile operators worldwide, uniting
nearly 800 operators with more than 300 companies in the broader mobile
ecosystem, including handset and device makers, software companies,
equipment providers and internet companies, as well as organisations in
adjacent industry sectors. The GSMA also produces industry-leading
events such as Mobile World Congress (News - Alert), Mobile World Congress Shanghai,
Mobile World Congress Americas and the Mobile 360 Series of conferences.
For more information, please visit the GSMA corporate website at www.gsma.com.
Follow the GSMA on Twitter (News - Alert): @GSMA.
1 A unique mobile subscriber represents an individual that
can account for multiple SIM connections
2 There were 747 million SIM connections (excluding licensed
cellular IoT) in Sub-Sahara Africa at the end of 2017, forecast to rise
to 1 billion in 2025
3 GDP contribution includes direct ecosystem contribution
(2.5%); indirect contribution (0.7%); and productivity improvements
(3.9%).
4 The United Nations member states adopted a set of 17
Sustainable Development Goals (SDGs) in September 2015. The SDGs set a
number of targets, including ending poverty, halting climate change, and
fighting injustice and inequality, by 2030. http://www.gsma.com/betterfuture/
View source version on businesswire.com: https://www.businesswire.com/news/home/20180717005059/en/
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