The challenges of Africa’s mobile growth & how they can be overcome

Africa’s mobile economy has experienced significant growth in recent years and is poised to generate almost $185 billion or 9.1 per cent of Gross Domestic Product (GDP) in the region by 2023. Despite this promising trajectory, challenges such as insufficient infrastructure, affordability, and macroeconomic uncertainty could impede the attainment of desired targets. Akinwale Goodluck, Head of Sub-Saharan Africa at GSMA, sheds light on potential solutions and strategies to overcome these obstacles. Goodluck emphasized the importance of increased awareness among governments and stakeholders in building a robust mobile economy. Policymakers are increasingly focusing on digital initiatives, with some even dedicating ministries to digital economy. This concerted effort is crucial for steering the region towards sustainable growth. However, despite recent advancements, Sub-Saharan Africa is projected to remain the least penetrated region in terms of mobile connectivity by 2025, largely due to challenges faced by mobile operators in rural areas. Goodluck highlighted key issues hindering mobile adoption in the region, including digital literacy, access to relevant and local content, and affordability. While mobile adoption in Sub-Saharan Africa currently stands at around 23%, there are positive trends emerging. For instance, mobile broadband adoption is expected to surpass 2G subscriptions in 2019, with further advancements projected in the coming years, indicating progress in the right direction. Addressing the need for local and impactful content, Goodluck stressed the importance of creating internet content that resonates with the common man in Sub-Saharan Africa. Content should extend beyond entertainment and sports to include information that directly impacts users' well-being, thereby incentivizing smartphone and data bundle investments. By offering compelling and relevant content, stakeholders can enhance user engagement and drive higher adoption rates. In discussing challenges related to data traffic monetization and macroeconomic uncertainty, Goodluck acknowledged the industry's transitional phase. Operators are tasked with innovating to monetize investments amidst growing data traffic and increasing competition from over-the-top (OTT) services. Economic stability and regulatory clarity are vital for sustainable growth, requiring operators to navigate these complex challenges with adaptability and innovation. When exploring conducive policies for mobile economy growth, Goodluck emphasized the need for streamlined infrastructure rollout processes and revised permitting regimes. Governments must prioritize right of way acquisition for fiber to facilitate mobile broadband expansion. Additionally, spectrum allocation policies should strike a balance between affordability and revenue generation, fostering enhanced adoption and improved service quality. Regulatory modernization and collaboration with industry players are essential for creating an enabling digital ecosystem that spurs investment and economic growth. Looking to the future, Goodluck underscored Africa's potential as a hub for digital innovation, driven by a large population of digital natives. Leveraging this demographic dividend, Africa can capitalize on the emerging workforce adept at digital technologies. While advancements in 4G networks are crucial, caution is advised regarding premature investments in 5G networks. Africa should prioritize managing expectations and focusing on tangible business cases before embarking on large-scale 5G deployments. In essence, navigating the complexities of Africa's mobile growth requires a multi-faceted approach that addresses infrastructural, regulatory, and economic challenges. By fostering collaboration among governments, operators, and stakeholders, Africa can harness its digital potential and propel the mobile economy towards sustainable success.