[October 08, 2015] |
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Mobile Contribution to Sub-Saharan African Economy Surpasses US$100 Billion, Finds New GSMA Study
The mobile industry in Sub-Saharan Africa contributed more than US$100
billion to the region's economy last year, according to a new GSMA (News - Alert) study
published at the 'Mobile 360 Series - Africa' conference being held in
Cape Town this week. The new study, 'The Mobile Economy - Sub-Saharan
Africa 2015', finds that the US$102 billion economic contribution in
2014 was equivalent to 5.7 per cent of the region's GDP1.
Mobile operators directly contributed US$31 billion, representing 1.7
per cent of GDP. This economic contribution is set to increase over the
coming years as mobile operators continue to extend connectivity to
unconnected populations across the region and roll out new mobile
broadband networks and services. The industry is forecast to contribute
US$166 billion in value to the region by 2020, equivalent to 8 per cent
of expected GDP by this point.
"The mobile industry remains a key driver of economic growth and
employment in Sub-Saharan Africa, making a vital contribution given the
population growth and high unemployment levels seen in many countries in
the region," said Alex Sinclair, Acting Director General and Chief
Technology Officer at the GSMA. "Despite revenue and margin pressures,
local mobile operators continue to invest heavily to extend network
coverage to serve unconnected communities and accelerate the migration
to high-speed 3G/4G mobile broadband networks. Mobile technology is also
playing a central role in Sub-Saharan Africa by addressing a range of
socio-economic challenges, particularly digital and financial inclusion,
and enabling access to vital services such as education and healthcare."
The World's Fastest-Growing Mobile Region
It is forecast that there will be 386 million unique mobile subscribers
in Sub-Saharan Africa by the end of this year, equivalent to 41 per cent
of the region's population. The region's subscriber base has grown by 13
per cent a year (CAGR), on average, during the first half of this decade
(2010 to 2015), growing at more than twice the rate of the global
average (6 per cent) during this period. The region overtook Latin
America in 2014 to become the world's third-largest mobile subscriber
market, behind only Asia Pacific and Europe. The number of unique mobile
subscribers in Sub-Saharan Africa is forecast to surpass half a billion
(518 million) by 2020, representing almost one in two (49 per cent) of
the region's population by this point.
Total mobile connections2 in Sub-Saharan Africa are on track
to reach 722 million by year-end. Mobile broadband (3G/4G) will account
for almost a quarter of connections this year, but will increase to 57
per cent by 2020, driven by expanding mobile broadband network coverage
and falling device costs. Commercial 3G networks have been launched in
41 countries across Sub-Sharan Africa as of June 2015, while 4G
networks have been launched in 23 countries. Investment in these
high-speed networks is resulting in a corresponding growth in consumers
using their devices to access the internet; almost a quarter (23 per
cent) of the Sub-Saharan African population will be using the mobile
internet this year, a figure forecast to rise to 37 per cent by 2020.
Mobile is seen as the primary means of accessing the internet in a
region where fixed-line infrastructure is severely limited.
The increasing availability of mobile broadband networks, alongside the
introduction of affordable mobile data tariffs and falling device
prices, has led to a surge in smartphone use. The smartphone adoption
rate has doubled over the last two years and now accounts for one in
five connections, though this is still half the global adoption average
(40 per cent). It is predicted that regional smartphone connections3
will reach 540 million by 2020, accounting for half of total connections
by that point. The report notes that the average selling price (ASP) of
smartphones has fallen significantly in most regional markets, with an
increasing number of models now available in the sub-US$100 price range.
Investing In Jobs, Networks and Innovation
In 2014, the mobile ecosystem directly employed approximately 2 million
people in Sub-Saharan Africa, with the majority working in the
distribution and retail sectors and approximately 325,000 employed by
mobile operators. A further 2.4 million jobs were indirectly supported
as result of the demand generated by the mobile sector, bringing the
total to 4.4 million. It is forecast that the industry will grow to
support more than 6 million jobs by 2020. The mobile ecosystem also made
a contribution to the public finances of the region's governments via
general taxation of approximately US$15 billion in 2014.
Mobile operators in the region invested US$9 billion in network
infrastructure development in 2014, a 16 per cent increase on the amount
invested in 2013. The ongoing investment in mobile broadband networks
will see capital investments reach US$13.6 billion by 2020.
The report highlights how mobile operators are working on innovative
solutions to expand network coverage to underserved populations in rural
and geographically remote areas, and to tackle the barriers to mobile
phone adoption, including affordability and digital literacy. It also
indicates that mobile operators, governments and international
development organisations have been working on a range of mobile-based
solutions to address a variety of social challenges in the region, many
of which arise from lack of access to essential services, such as basic
education and health.
"Mobile is having a hugely positive and transformative impact across
Sub-Sahara Africa, but future progress will depend on governments
working with the industry to provide a regulatory environment that
encourages investment and innovation," added Alex Sinclair.
To access the full report and related infographics please visit: http://www.gsmamobileeconomy.com/ssafrica/.
-ENDS-
About the GSMA
The GSMA represents the interests of mobile operators worldwide, uniting
nearly 800 operators with more than 250 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 and
the Mobile 360 Series conferences.
For more information, please visit the GSMA corporate website at www.gsma.com.
Follow the GSMA on Twitter (News - Alert): @GSMA
1 GDP total includes direct and indirect contribution from
mobile operators (1.7%); related players e.g. device manufacturers and
infrastructure vendors (0.7%); indirect economic impact (0.5%); and
productivity improvements (2.8%)
2 A unique mobile subscriber can account for multiple mobile
connections (SIM cards). Mobile connections total excludes cellular
machine-to-machine (M2M) connections.
3 A smartphone connection is defined as a SIM card registered
and used in a smartphone device. It does not represent the number of
smartphone devices sold or shipped.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151007005637/en/
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