Africa: the new pot of gold for mobile telecoms

African Update – 31/12/11

Mobile subscribers in Africa have increased by 20 percent annually over the past five yearsAfrica's lag in land-based telecoms infrastructure has propelled the continent directly into the mobile age, opening up short-term growth prospects unparalleled in the world.

Sector players have seen growth especially in mobile Internet and banking services, as people use cellphone technology for lack of landlines or cable Internet."Africa is the last market to emerge. China's emerged, India's emerged. So where else outside Africa need emerging? The growth opportunity is right here," said Nicolas Regisford, co-founder of Mi-Fone, a South African company that specialises in producing low-cost handsets.Mobile subscribers in Africa have increased by 20 percent annually over the past five years and will reach over 735 million by the end of 2012, a study by global mobile operators association GSMA found in November."Africa is now the world’s second largest mobile market by connections after Asia, and the fastest growing mobile market in the world," according to the GSMA Africa Mobile Observatory 2011 report.Industry players are equally excited over the commercial prospects posed by the continent's one billion people."Samsung is expecting revenue within Africa to amount $15 billion, with the SADC region contributing about 25 percent of that figure, by 2015," said Gavin Clare, the company's representative in Zimbabwe, referring to the 15-country Southern African Development Community.This philosophy also drives Mi-Fone, which eyes the immense market of consumers seeking entry-level phones."The African person wants a mobile device which will be doing mobile payments and accessing the world wide web. Right now, a lot of people cannot afford the smartphones that are flooding the market," said Regisford.Ironically, this lack of traditional infrastructure, telecom and landline services, Internet penetration and broadband access, and banking services drives this growth in Africa, according to mobile systems expert Tomi Ahonen."As it happens the global Internet industry believes that the future of Internet is mobile. The global telecom industry believes that the future of the telecom industry is mobile, and the global money industry is starting to believe that the future of money is mobile."One case in point is Kenya, already the world's largest mobile financial services user in relation to its GDP. Almost 18 million Kenyans use their cellphones as a bank account to deposit or transfer money and pay their accounts -- contributing 8.0 percent of the GDP.Several other African countries are following suit.The "maturity of the market", as financiers call it, is another asset. Applications dominate the mobile world in Europe and the United States, but earn relatively little. On the other hand the mobile business in Africa keeps earning through more conventional services like text messages and voice calls."The business model around the basic services on mobile are much more realistic, and robust," said Ahonen at a workshop in Johannesburg in November.This cellphone explosion in Africa contributes as much as $56 billion to the region's economy, or 3.5% of its gross domestic product (GDP), but the indirect effect on growth is perhaps even higher."Local development of telecommunication has a direct impact on GDP. This is a professional tool. Many handcrafters or retailers dramatically need to be connected to the world to make business," said Regisford."In developing countries, for every 10 percent increase in mobile penetration there is a 0.81 percentage point increase in a country’s GDP," the GSMA report found.All the same a few barriers, like taxes on cellphones, hamper this growth, which could rob governments of more revenues if mobile phone penetration increased.In Kenya tax revenues from mobile operators jumped a third in 2011 from 2009, when taxes were reduced on handsets."The Kenyan government’s abolition of the 16 percent general sales tax on mobile handsets in 2009 has resulted in handset purchases increasing by more than 200 percent," accoroding to the GSMA report.

Source: www.africasia.com

Upcoming AIC events
There are no upcoming events at the moment.
Book of the month

Xoliswa Ndoyiya: Ukutya Kwasekhaya

Xoliswa Ndoyiya: Ukutya KwasekhayaTastes from Nelson Mandela’s kitchen

A collection of recipes by Nelson Mandela's personal chef, this book contains the food served to visiting heads of state, celebrities, politicians for more than 20 years. Featuring some of the favourite former South African president's favourite meals including samp and beans, farm chicken, tripe, this book also features paella, peri-peri chicken, prawn curry, and myriad of other delights. With simple, delicious and nourishing recipes, it will interest those who wish to prepare meals that are both elegant and healthy.More

New arrivals

New titles in our library 12/2016

Our library has aquired a number of new and interesting books. Here is the list of the latest titles.

  • Blood Brothers: The Fatal Friendship Between Muhammad Ali and Malcolm X by Randy Roberts and Johnny Smith
  • Fashion Cities Africa by Hannah Azieb Pool
  • Frantz Fanon: Toward a Revolutionary Humanismby Christopher Lee
  • Americanah by Chimamanda Ngozi Adichie
  • Why Nations Fail: The Origins of Power, Prosperity and Poverty by Robinson, James A., Acemoglu, Daron
  • Shakespeare in Swahililand: Adventures With the Ever-Living Poet by Edward Wilson-Lee
  • A History of Modern Africa: 1800 to the Present by Richard J. Reid
  • Authentically African: Arts and the Transnational Politics of Congolese Culture by Sarah Van Beurden
  • Children in Slavery through the Ages by by Gwyn CampbellSuzanne MiersJoseph C. Miller
  • Global Health in Africa: Historical Perspectives on Disease Control by Tamara Giles-Vernick
  • Rumba on the River: A History of the Popular Music of the Two Congos by Gary  Stewart
  • Women and Slavery, Vol. 1: Africa, the Indian Ocean World, and the Medieval North Atlantic by Gwyn Campbell
  • Women and Slavery, Vol. 2: The Modern Atlantic by Gwyn Campbell
  • Cahier d'un Retour Au Pays Natal by Aimé Cesaire
  • Healing Traditions: African Medicine, Cultural Exchange and Competition in South Africa, 1820-1948 by Karen Elizabeth  Flint
  • Global Education Policy and International Development: New Agendas, Issues and Policies by Antoni Verger
  • Black Skin, White Coats: Nigerian Psychiatrists, Decolonization, and the Globalization of Psychiatry by Matthew M. Heaton
   

African information centre

Ječná 2, 120 00 Prague 2

Opening hours

Tuesday, Thursday: 2 – 6 pm

Humanitas Afrika, občanské sdružení

We're supported by:

Pokladní systémy

Hl. m. Praha Česká rozvojová agentura

Fair Trade Logo

AIC je prodejním místem
produktů fairtrade

Our partners:

  • Afro.cz