GSMA Study Says Mobile Contribution to Sub-Saharan African Economy Surpasses $100Bn

The mobile industry in Sub-Saharan Africa contributed more than US$100 billion to the region’s economy last year, according to a new GSMA study published at the ‘Mobile 360 Series – Africa’ conference being held in Cape Town this week.

The new study, ‘The Mobile Economy – Sub-Saharan Africa 2015’, finds that the US$102 billion economic contribution in 2014 was equivalent to 5.7 per cent of the region’s GDP1. Mobile operators directly contributed US$31 billion, representing 1.7 per cent of GDP.

This economic contribution is set to increase over the coming years as mobile operators continue to extend connectivity to unconnected populations across the region and roll out new mobile broadband networks and services.

The industry is forecast to contribute US$166 billion in value to the region by 2020, equivalent to 8 per cent of expected GDP by this point.

“The mobile industry remains a key driver of economic growth and employment in Sub-Saharan Africa, making a vital contribution given the population growth and high unemployment levels seen in many countries in the region,” said Alex Sinclair, Acting Director General and Chief Technology Officer at the GSMA.

“Despite revenue and margin pressures, local mobile operators continue to invest heavily to extend network coverage to serve unconnected communities and accelerate the migration to high-speed 3G/4G mobile broadband networks. Mobile technology is also playing a central role in Sub-Saharan Africa by addressing a range of socio-economic challenges, particularly digital and financial inclusion, and enabling access to vital services such as education and healthcare.”