Africa to become world’s second-largest mobile market by 2020

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According to ‘Mobile Economy 2014: Sub-Saharan Africa’ by GSMA, the body representing interests of mobile operators worldwide, Sub-Saharan Africa has been the world’s fastest-growing mobile region over the last five years in terms of both unique mobile subscribers and mobile connections.

The region is also forecast to continue to lead global growth through 2020.

The report shows that the unique subscriber base will grow by seven per cent per year to 2020 to reach over half a billion and account for 49 per cent of the population. Sub-Saharan Africa will by then have overtaken Europe to become the world’s second-largest mobile market after Asia Pacific.

“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.

She added: “Millions of additional citizens in the region will become mobile subscribers over the next six years, with many being able to access the internet for the first time via low-cost smartphones and mobile broadband networks. Operators and other ecosystem players, as well as governments and regulators, all have a role to play in ensuring that affordable mobile services can be extended across the region.”

Nigeria, South Africa, Ethiopia, Kenya, Democratic Republic of Congo and Tanzania, are the six largest markets in Sub-Saharan Africa, in order of size. Together they account for over half of the region’s unique mobile subscriber base.

According to the report, by the end of June 2014, there were 329 million unique mobile subscribers in Sub-Saharan Africa, equivalent to 38 per cent of the region’s total population.

The report also shows that the region is witnessing a rapid migration to mobile broadband networks.

The strongest growth of any global region in the number of smartphone connections over the next six years is expected to occur in Sub-Saharan Africa, reaching 525 million by 2020.

Lack of fixed-line infrastructure in the region makes mobile phone the primary means of accessing the internet. Some 150 million people were already using mobile devices to access the internet across the region by the end of 2013.

“To fully realise the transformative potential of mobile in Sub-Saharan Africa, the mobile industry requires a supportive regulatory framework that provides long-term stability and encourages investment,” said Ms Bouverot. “This includes the need for clear and transparent spectrum management processes, as well as tackling high levels of taxation in some markets. Addressing these issues will allow mobile to power a fresh wave of growth and innovation in this fast-developing region.”

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