Post by Trade Coach on May 2, 2017 11:08:29 GMT 1
The mobile phone has gone from being a luxury for the few to a necessity for the masses the world over.
Most of us take the internet and mobile revolution that has swept the planet in the last 30 years for granted. My children grew up not knowing life before the internet and mobile phone. I get questions like: “How did you find out about 'stuff without Google?” “You went to the library?Really?" “You mean you actually used apublic phone booth to make telephonecalls?” The mobile phone, mobile apps,cloud computing, Twitter, Facebook, big data, the Internet of things, etc are just part of my childrens' world - just like breathing the air or drinking water.
Yet in many parts of the developing world, it is only now that these “things" that we take for granted are beginning to feature in people's lives. The opportunities that internet and mobile technology create seem endless - not only for businesses, creation of value and enterprise, but also to transform people's lives and lift many out of poverty.
Africa, with a billion-plus population, is the youngest population in the world (having a median age of 19 years). The continent is estimated to account for $1 trillion in consumer spending by 2020. Against this backdrop, Africa has the opportunity to take advantage of the internet and mobile revolution for its economictransformation.
Internet penetration
Africa's internet penetration rate is around 28% (2015). This figure obviously varies from country to country (for instance internet penetration in Nigeria is 51.1% versus Somalia where it is 4.7%) and region to region. It does not take into account the fact that many Africans access the internet in internet cafes and other public places. McKinsey estimates that by 2025, Africa will have tripledinternet penetration to over 50%, or around 600 million people.
Mobile penetration
The GSM Association reported that in mid- 2014, there were over 600 million SIM connections in Sub-Saharan Africa (SSA), equivalent to a penetration rate of 68%. GSMA forecasted that SSA will remain the fastest growing region helped by ongoing economic growth and the increasing affordability of mobile services. The association of mobile operators worldwide said the mobile subscriber base in SSA will grow at a Compound Annual Growth rate (CAGR) of 7%, reaching just over half a billion unique subscribers by the end of 2020. But despite this growth, less than half the population of SSA will have a mobile subscription by 2020, compared to a global average of six out of 10 people by the same date.
In. addition, Ericsson, the Swedish multinational communicationstechnology company, says mobile penetration in the SSA sub-region w: reach 100% by 2021, increasing mobile traffic by 15 times from the current level. Whilst McKinsey says mobile penetration in the region will triple to around 50% by 2025, mainly via smartphones.
No one truly knows which of the above predictions will come true. Some say that these numbers may have to be readjusted downwards to take account of the headwinds that some African economies have been facing over the last year-and-a half. Others counter by saying that increased competition, falling costs of equipment and greater disposable income will move the trajectory further upward However, these predictions are just about statistics. The reality today is that mobile and internet access in Africa is increasing exponentially and it is having transformative impact on people's lives, more importantly, in their local and international business transactions.
Mobile phones impact in Africa
The mobile phone has gone from being luxury for the few to a necessity for the masses the world over. In Africa, the mobile phone has become a necessity by improving access to banking and financial services; changing the way business done in numerous sectors including import and export, banking, agriculture, telecoms and the pharmaceutical sectors; and increasing transparency in politics (e.g. activists us mobile applications to monitor politic violence and fight against state control free speech).
Some would say that the evolution of the mobile phone and the tools and apps that go with it are inextricably linked to the progress and development of the continent. And mobile phones are getting better and cheaper (with companies such as Mozilla, Micromax (India) and Xiaomi (China) selling smartphones in the USD2550 range). Perhaps more importantly, they also provide access to the internet thereby bypassing the need for a computer. Computers cost more and are more susceptible to the common African malaise of inadequate power supply.
The mobile phone is no longer just a communication tool. It potentially holds the key to unlocking all sorts of doors.
Most of us take the internet and mobile revolution that has swept the planet in the last 30 years for granted. My children grew up not knowing life before the internet and mobile phone. I get questions like: “How did you find out about 'stuff without Google?” “You went to the library?Really?" “You mean you actually used apublic phone booth to make telephonecalls?” The mobile phone, mobile apps,cloud computing, Twitter, Facebook, big data, the Internet of things, etc are just part of my childrens' world - just like breathing the air or drinking water.
Yet in many parts of the developing world, it is only now that these “things" that we take for granted are beginning to feature in people's lives. The opportunities that internet and mobile technology create seem endless - not only for businesses, creation of value and enterprise, but also to transform people's lives and lift many out of poverty.
Africa, with a billion-plus population, is the youngest population in the world (having a median age of 19 years). The continent is estimated to account for $1 trillion in consumer spending by 2020. Against this backdrop, Africa has the opportunity to take advantage of the internet and mobile revolution for its economictransformation.
Internet penetration
Africa's internet penetration rate is around 28% (2015). This figure obviously varies from country to country (for instance internet penetration in Nigeria is 51.1% versus Somalia where it is 4.7%) and region to region. It does not take into account the fact that many Africans access the internet in internet cafes and other public places. McKinsey estimates that by 2025, Africa will have tripledinternet penetration to over 50%, or around 600 million people.
Mobile penetration
The GSM Association reported that in mid- 2014, there were over 600 million SIM connections in Sub-Saharan Africa (SSA), equivalent to a penetration rate of 68%. GSMA forecasted that SSA will remain the fastest growing region helped by ongoing economic growth and the increasing affordability of mobile services. The association of mobile operators worldwide said the mobile subscriber base in SSA will grow at a Compound Annual Growth rate (CAGR) of 7%, reaching just over half a billion unique subscribers by the end of 2020. But despite this growth, less than half the population of SSA will have a mobile subscription by 2020, compared to a global average of six out of 10 people by the same date.
In. addition, Ericsson, the Swedish multinational communicationstechnology company, says mobile penetration in the SSA sub-region w: reach 100% by 2021, increasing mobile traffic by 15 times from the current level. Whilst McKinsey says mobile penetration in the region will triple to around 50% by 2025, mainly via smartphones.
No one truly knows which of the above predictions will come true. Some say that these numbers may have to be readjusted downwards to take account of the headwinds that some African economies have been facing over the last year-and-a half. Others counter by saying that increased competition, falling costs of equipment and greater disposable income will move the trajectory further upward However, these predictions are just about statistics. The reality today is that mobile and internet access in Africa is increasing exponentially and it is having transformative impact on people's lives, more importantly, in their local and international business transactions.
Mobile phones impact in Africa
The mobile phone has gone from being luxury for the few to a necessity for the masses the world over. In Africa, the mobile phone has become a necessity by improving access to banking and financial services; changing the way business done in numerous sectors including import and export, banking, agriculture, telecoms and the pharmaceutical sectors; and increasing transparency in politics (e.g. activists us mobile applications to monitor politic violence and fight against state control free speech).
Some would say that the evolution of the mobile phone and the tools and apps that go with it are inextricably linked to the progress and development of the continent. And mobile phones are getting better and cheaper (with companies such as Mozilla, Micromax (India) and Xiaomi (China) selling smartphones in the USD2550 range). Perhaps more importantly, they also provide access to the internet thereby bypassing the need for a computer. Computers cost more and are more susceptible to the common African malaise of inadequate power supply.
The mobile phone is no longer just a communication tool. It potentially holds the key to unlocking all sorts of doors.
