GSMA predicts mobile growth in Sub-Saharan Africa

DAR ES SALAAM. — The GSMA has released a new report into the mobile economy in Sub-Saharan Africa during the Africa edition of GSMA Mobile 360 Africa event, currently underway in Tanzania.

The report forecasts that the number of unique mobile subscribers in Sub-Saharan Africa will grow from 420 million, which is equal to 43 percent of the region’s population at the end of 2016, to 535 million or 50 percent of the population in 2020 — making it the fastest growing region in the world (in terms of mobile subscriptions) over the five year period.

Mats Granryd, Director General of the GSMA has highlighted the report’s finding that the surge in subscriptions in Sub-Saharan Africa’s mobile ecosystem will result in a growing contribution to regional GDP, jobs, innovation and socio-economic development.

“Sub-Saharan Africa will be a key engine of subscriber growth for the world’s mobile industry over the next few years as we connect millions of previously unconnected men, women and young people across the continent. Mobile is offering sustainable solutions that address lack of access to services such as health, education, electricity, clean water and financial services, which affect large swathes of the population.”

Subscriber growth in Sub-Saharan Africa is expected to be concentrated in underpenetrated markets such as the Democratic Republic of Congo (DRC), Ethiopia, Nigeria and Tanzania, which together will account for half of the 115 million new subscribers expected in Sub-Saharan Africa by 2020 according to the GSMA.

The report also found that growth will focus on what the GSMA says are currently under-represented segments such as the under-16 age group and women. The GSMA reports that mobile technologies and services generated $110 billion of economic value in Sub-Saharan Africa in 2016, equivalent to 7,7 percent of regional GDP.

The expectation is that this figure will grow to $142 billion (8,6 percent of GDP) by 2020. The mobile ecosystem is reported to have directly and indirectly supported approximately 3,5 million jobs in the region last year, and made a $13 billion contribution to the public sector in the form of taxation. — ITwebafrica.