Africa’s Growing Mobile Market

By Chief K.Masimba Biriwasha

Harare, Zimbabwe – Africa is the fastest growing mobile market, according to a new report released by the industry group GSMA, or Groupe Speciale Mobile Association. 

The report titled, Africa Mobile Observatory 2011, states that for each of the past five years, the number of subscribers across Africa has grown by almost 20 percent and is expected to reach 738 million by the end of next year. It further stated that voice service is predominant but the use of data service is increasing steadily.

Nigeria now has the most mobile subscribers in Africa, with 93m connections. This represents 16% of the continent’s total. SA, with its more developed infrastructure, leads the way in terms of broadband penetration, at 6%, followed by Morocco at 2,8%.

The mobile ecosystem in Africa generates about US$56bn or 3,5% of total GDP, with mobile operators alone contributing US$49bn. The report says the mobile industry contributes $15bn in government revenues

“In releasing its report, GSMA called on African governments to allocate more mobile broadband spectrum and cut taxes on mobile operators to further spur expansion. Citing studies by the World Bank and others, GSMA says that in developing countries, for every 10 percent increase in mobile penetration there is a 0.81 percent increase in GDP,” reported the Associated Press.

“The mobile industry in Africa is booming and a catalyst for immense growth, but there is scope for far greater development,” said Peter Lyons, a GSMA policy expert.

According to the Associated Press, Africa has been described as the Silicon Valley of cell phones because of the innovative ways they are used on the continent.

“Cell phone networks have been set up to help health care workers in remote villages consult with doctors in cities. Researchers have used cell phone technology to track animals for wildlife studies. Africans use cell phones to make payments across borders,” it reported.

The benefits that mobile services have already brought to hundreds of millions of Africans can be extended to those who have yet to connect. By so doing, the African continent can continue to bring not only communication services, but also improved financial services, healthcare and education to its people and drive an increase in the economic wealth and development.

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