Sub-Saharan Africa's mobile industry has been the fastest growing region in the world for mobile users in the past five years, according to a report published by the GSMA, the body representing mobile operators worldwide.
The region's mobile subscriber base has grown by 18% a year over the past five years to 253-million unique users and 502-million connections. GSMA forecasts in their report, "Sub-Saharan Africa Mobile Economy 2013", that mobile users in the region will be closer to 346-million within the next five years.
Despite the high figures, there is still ample room for growth. "With unique subscriber penetration rates still less than 33%, this opens up a major opportunities for growth in the next five years," the GSMA said.
At 65.7%, South Africa has the highest penetration rate, while Niger represents the lower end at 20%.
The mobile industry currently contributes more than 6% of Sub-Saharan Africa's gross domestic product (GDP) - higher than any other comparable region globally, according to the report. This contribution is expected to rise from $60-billion in 2012 to $119-billion, or more than 8% of GDP, by 2020.
Last year, the mobile ecosystem directly supported 3.3-million jobs and contributed $21-billion to public funding in the region, including licence fees, the study shows.
By 2020, mobile is set to double its economic effect, employing 6.6-million people in the region and contributing $42-billion to public funding.
Fixed-line penetration rates in many countries in the region are less than 5%. "Mobile has emerged as the main medium for accessing the internet across sub-Saharan Africa. While 2G connections still dominate, 3G and 4G networks are gaining scale and smartphone ownership is on the rise," the GSMA said.
"Despite the significant impact of the mobile industry in sub-Saharan Africa in recent years, even greater opportunities are ahead," said Tom Phillips, GSMA's chief regulatory officer. "Beyond further growth for voice services, the region is starting to see an explosion in the uptake of mobile data."
However, Phillips said, a short-term focus by some countries on generating high spectrum fees and maximising tax revenue risks "constrains the potential of the mobile internet.
The region's mobile subscriber base has grown by 18% a year over the past five years to 253-million unique users and 502-million connections. GSMA forecasts in their report, "Sub-Saharan Africa Mobile Economy 2013", that mobile users in the region will be closer to 346-million within the next five years.
Despite the high figures, there is still ample room for growth. "With unique subscriber penetration rates still less than 33%, this opens up a major opportunities for growth in the next five years," the GSMA said.
At 65.7%, South Africa has the highest penetration rate, while Niger represents the lower end at 20%.
Economic effect
The mobile industry currently contributes more than 6% of Sub-Saharan Africa's gross domestic product (GDP) - higher than any other comparable region globally, according to the report. This contribution is expected to rise from $60-billion in 2012 to $119-billion, or more than 8% of GDP, by 2020.
Last year, the mobile ecosystem directly supported 3.3-million jobs and contributed $21-billion to public funding in the region, including licence fees, the study shows.
By 2020, mobile is set to double its economic effect, employing 6.6-million people in the region and contributing $42-billion to public funding.
Fixed-line penetration rates in many countries in the region are less than 5%. "Mobile has emerged as the main medium for accessing the internet across sub-Saharan Africa. While 2G connections still dominate, 3G and 4G networks are gaining scale and smartphone ownership is on the rise," the GSMA said.
"Despite the significant impact of the mobile industry in sub-Saharan Africa in recent years, even greater opportunities are ahead," said Tom Phillips, GSMA's chief regulatory officer. "Beyond further growth for voice services, the region is starting to see an explosion in the uptake of mobile data."
However, Phillips said, a short-term focus by some countries on generating high spectrum fees and maximising tax revenue risks "constrains the potential of the mobile internet.
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