LIVE FROM GSMA MOBILE 360 AFRICA: The number of unique mobile subscribers in Sub-Saharan Africa will pass the half billion mark in 2020 as mobile services become affordable and accessible to millions of citizens across the region, according to a new GSMA report titled ‘Mobile Economy 2014: Sub-Saharan Africa’.

The region, made up of 46 countries, has been the world’s fastest-growing mobile market over the last five years in terms of unique mobile subscribers and mobile connections.

“The mobile industry has transformed the lives of millions of people across Sub-Saharan Africa, providing not just connectivity but also an essential gateway to a wide range of healthcare, education and financial services,” said Anne Bouverot, director general of the GSMA.

“As today’s report shows, millions of additional citizens in the region will become mobile subscribers over the next six years, with many being able to access the internet for the first time via low-cost smartphones and mobile broadband networks,” she added.

Of the 46 countries, Nigeria, South Africa, Ethiopia, Kenya and Democratic Republic of Congo and Tanzania account for over half of the region’s unique mobile subscriber base.

Mobile broadband
3G accounted for only 17 per cent of total connections in June 2014, but is forecast to account for more than half of the total by 2020, while 4G is expected to account for 4 per cent.

Sub-Saharan Africa is also expected to see the strongest growth of any global region in the number of smartphone connections over the next six years, reaching 525 million by 2020.

Boosting economies
The report claims the mobile industry is a valuable and growing contributor to the region’s economies. In 2013, the mobile industry contributed 5.4 per cent to overall GDP in the region, equivalent to $75 billion, and the mobile ecosystem directly employed nearly 2.4 million people. It is estimated that by 2020 the mobile industry will contribute US$104 billion to the region’s economy, representing at that point 6.2 per cent of the region’s projected GDP.

However, Sub-Saharan Africa is still the world’s least populated mobile region and local operators face several challenges in their efforts to expand network coverage on a cost-effective basis to unconnected populations.

According to the report, the implementation of commercially agreed network sharing deals and ensuring the timely release of Digital Dividend spectrum will be important factors in achieving this goal.

“To fully realise the transformative potential of mobile in Sub-Saharan Africa, the mobile industry requires a supportive regulatory framework that provides long-term stability and encourages investment,” according to Bouverot.

This includes clear and transparent spectrum management processes and tackling high levels of taxation in some markets.