A new study has placed the telecoms sector at the centre of economic development in Africa, endorsing it as the stimulant required to spur economic growth.
The research by blockchain-based mobile network operator World Mobile found telecoms will be the fastest-growing industry in Africa over the next five years, and pivotal to growth in the economy and across all sectors.
The majority (75%) of the African senior executives interviewed for the study picked telecoms as the strongest industry for growth ahead of the healthcare sector, which emerged as second choice, selected by 61%.
Tourism was third (41%), followed by financial services (36%), retail (36%), manufacturing and education, both at 22%.
The study identified improvement in internet connectivity as central to growth in the economy and across all sectors, with around two-thirds (66%) of the respondents saying it is important, while 20% believe it is very important.
According to the principals of the research, senior executives at companies with combined annual revenue of more than $6.75 billion, based in Tanzania, Angola, Botswana, Cameroon, Ethiopia, Ghana, Nigeria and South Africa, were interviewed for the study.
Operators across Africa are upping investments in network expansions to take advantage of the growing population, low mobile penetration and strong demand for data.
“The expansion of telecoms across the African continent is central to driving economic growth, and senior business executives clearly agree, as they rank it well ahead of other major sectors of the economy,” says Micky Watkins, CEO of World Mobile.
“To a great extent, growth in telecoms spurs growth in other sectors as societies become more digital and technology focused, and that applies very much to financial services, healthcare, retail and education.
“Not all parts of Africa, however, have strong internet connectivity and we want to help by providing a service which is affordable and reliable, and look forward to working with governments across the continent.”
World Mobile is one of the companies seeking a solution to bring widespread internet connectivity to Sub-Saharan Africa. The operator will soon launch a hybrid mobile network in Zanzibar, delivering connectivity supported by low-altitude platform balloons.
The balloons reportedly offer a cost-effective way to provide digital connection, and are the first step in the company’s mission to help bring nearly four billion people online before 2030, in line with stated United Nations and World Bank goals.
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