Unearthing Africa’s telecoms sector growth potential

AFRICA is the second largest continent in the world, with a population of more than one billion people. The social and economic impact that telecommunications have had on Africa over the past decade are astounding. The sector has bought billions of dollars from international investors.

Africa’s communications marketplace has now passed the tipping point from high potential to high growth. Unburdened by a legacy of installed telecoms infrastructure, Africa has leapfrogged the fixed-line phase of development to mass-market mobile networks and services.

The African mobile market is increasing at an alarming rate, mobile retail connectivity revenues are expected to rise to $71,33 billion in 2020. Mobile voice revenues will decline slightly over the forecast period, but mobile data revenues will grow at a Compound Annual Growth Rate of 18,2% between 2018 and 2020, reaching $25,83 billion in 2020.

Data revenue will account for 36,2% of mobile retail connectivity revenue in 2020, up from 17,1% in 2018. The South African mobile market is nearing saturation, with mobile penetration approaching 110%. The number of subscribers or active SIM cards reached 52,2 million at the end of 2016, representing a mobile penetration of 107,2%. Fixed-line connections continued to stagnate, at 4,3 million during the same period. According to All Media Products Survey statistics, 76% of South Africans over the age of 15 personally owned, rented or had use of a cell phone in 2010. Nigeria Mobile market is growing at more than 100% per year.