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Sub-Saharan Africa mobile subscribers to surge

Kgaogelo Letsebe
By Kgaogelo Letsebe, Portals journalist
Johannesburg, 12 Jul 2017
Sub-Saharan Africa is expected to have 535 million unique mobile subscribers by 2020.
Sub-Saharan Africa is expected to have 535 million unique mobile subscribers by 2020.

Unique mobile subscribers in Sub-Saharan Africa are expected to grow from 420 million at the end of 2016 to 535 million in 2020, albeit only an estimated 40% will have mobile Internet penetration in that period.

The surge, however, makes it the fastest-growing region in the world over this period.

This is according to GSMA reports released yesterday at the GSMA Mobile 360 - Africa event in Tanzania.

GSMA is a trade body that represents the interests of mobile operators worldwide. Approximately 800 mobile operators are full GSMA members and a further 300 companies in the broader mobile ecosystem are associate members.

"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," said Mats Granryd, director general of the GSMA.

"Mobile is also offering sustainable solutions that address the lack of access to services such as health, education, electricity, clean water and financial services, which still affect large swathes of the population."

According to the "The Mobile Economy: Sub-Saharan Africa 2017" report, the subscriber growth is expected to be boosted by currently under-represented segments. These include the under-16 age group, which accounts for more than 40% of the population in many countries, and women, who are currently 17% less likely to have a mobile phone subscription than their male counterparts.

The report also found local mobile operators have invested $37 billion in their networks over the past five years, mainly to deploy new 3G and 4G mobile broadband networks.

"Concentrated and underpenetrated markets, such as the Democratic Republic of Congo, Ethiopia, Nigeria and Tanzania, will account for half of the 115 million new subscribers expected in Sub-Saharan Africa by 2020," it said.

In a separate report from the same event, "Taxing mobile connectivity in Sub-Saharan Africa", it is highlighted that for 27 countries in the region where data is available, the total cost of mobile ownership for purchasing a handset and 500MB of data per month represents, on average, 10% of monthly income, well above the 5% threshold recommended by the UN Broadband Commission.

The reports concurrently highlight that mobile is a vital tool in delivering digital and financial inclusion in Sub-Saharan Africa, adding at present there are 280 million registered mobile money accounts. "As Sub-Saharan Africa transitions to higher levels of mobile engagement, underpinned by growing access to mobile data services and smart devices, we are seeing a flourishing mobile ecosystem emerge, supported by growing investments by operators and others in mobile-focused start-ups and tech hubs," noted Granryd.

"Building this digital society requires collaboration between governments and the mobile industry to develop the policies and programmes that create the right incentives for innovation and an enabling environment for extending connectivity to all," he noted.

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