Sub-Saharan Africa’s Mobile Economy valued at $150 Billion, to Generate $185 Billion by 2023

A recent study by the GSMA has reported the value of Sub-Saharan Africa’s (SSA) mobile economy for 2018 to be $150 Billion. According to the report, the amount is equivalent to 8.6% GDP of the SSA’s region.

The report, which was published at the ‘Mobile 360-Africa’ event in Kigali estimated that the mobile ecosystem of SSA will generate $185 billion, that is 9.1% of the region’s GDP by 2023.The study extensively communicated that the region will remain the fastest growing region with a Compound annual growth rate (CAGR) of 4.6%.

It was reported that the region will get 167 million subscribers more by 2025. This brings the total number of subscribers in the region to over 600 million, about half of the population. This addition will focus majorly on the high-growth markets in Nigeria and Ethiopia.

According to Akinwale Goodluck, Head of Sub-Saharan Africa GSMA, since mobile technology is the core of the SSA regions digital journey, it is important for policymakers to enact policies that will sustain the industry.

Key points from the report include;

About 239 million people, corresponding to 23% of the region’s population, access mobile internet regularly.

Smartphones accounted for 39% of mobile connections in Sub-Saharan Africa in 2018 and are forecasted to increase to two-thirds of connections by 2025.

3G will overtake 2G to become the leading mobile technology in Sub-Saharan Africa in 2019.

4G will account for almost one in four connections by 2025. However, 4G approval is being abridged in some markets by the high cost of 4G devices and delays in assigning 4G spectrum.

The region’s mobile operators are increasing investment in their networks and are expected to spend $60 billion on network infrastructure and services between 2018 and 2025 – almost a fifth of this total is being invested in new 5G networks.

Sub-Saharan Africa’s mobile ecosystem supports around 3.5 million jobs, directly and indirectly. Last year, it contributed almost $15.6 billion to fund the public sector through consumer and operator taxes.