The Mobile Economy

Sub-Saharan
Africa
2022

Copyright © 2022 GSM Association

 The Mobile Economy Sub-Saharan Africa 2022

The GSMA is a global organisation unifying the mobile GSMA Intelligence is the definitive source of global mobile
ecosystem to discover, develop and deliver innovation operator data, analysis and forecasts, and publisher of
foundational to positive business environments and societal authoritative industry reports and research. Our data covers
change. Our vision is to unlock the full power of connectivity every operator group, network and MVNO in every country
so that people, industry and society thrive. Representing worldwide – from Afghanistan to Zimbabwe. It is the most
mobile operators and organisations across the mobile accurate and complete set of industry metrics available,
ecosystem and adjacent industries, the GSMA delivers for its comprising tens of millions of individual data points,
members across three broad pillars: Connectivity for Good, updated daily.
Industry Services and Solutions, and Outreach. This activity
GSMA Intelligence is relied on by leading operators, vendors,
includes advancing policy, tackling today’s biggest societal
regulators, financial institutions and third-party industry
challenges, underpinning the technology and interoperability
players, to support strategic decision-making and long-
that make mobile work, and providing the world’s largest
term investment planning. The data is used as an industry
platform to convene the mobile ecosystem at the MWC and
reference point and is frequently cited by the media and by
M360 series of events.
the industry itself.
We invite you to find out more at gsma.com
Our team of analysts and experts produce regular thought-
Follow the GSMA on Twitter: @GSMA
leading research reports across a range of industry topics.

www.gsmaintelligence.com
[email protected]
 The Mobile Economy Sub-Saharan Africa 2022

Contents
Executive summary 2

1 The mobile market in numbers 10

1.1 Mobile adoption continues to increase 11

1.2 4G accelerates as 3G reaches its peak 12
1.3 Smartphone adoption and data traffic on the rise 13
1.4 Revenue growth outlook remains strong 15

2 Key trends shaping the mobile industry 16

2.1 5G: momentum builds for 5G-related activities 17

2.2 Telco of the future: a new wave of tower deals 19
2.3 Sub-Saharan Africa grows presence in the metaverse 21

3 Mobile contributing to economic growth and social progress 23

3.1 Mobile’s contribution to economic growth 24

3.2 Mobile enabling a more inclusive society 27

4 Policies for inclusive digital development 31

 The Mobile Economy Sub-Saharan Africa 2022 Executive summary

Executive
summary

Closing the Mobile connectivity was at the centre of the Covid-19 response
in Sub-Saharan Africa. During the pandemic, mobile acted as
usage gap a critical lifeline for consumers. As the predominant form of
connectivity in the region, the vast majority of services that
is crucial to moved online amid lockdown measures utilised mobile networks
realising the to reach end users. The mobile industry has also continued to
bring connectivity to people and invest in network coverage and
potential capacity expansion to help people interact with the communities
of mobile and environment around them.

connectivity As countries in Sub-Saharan Africa, and the rest of the world,

transition into a post-pandemic economic recovery phase,
mobile connectivity is set to play a crucial role in defining the
‘new normal’. Authorities see an opportunity to leverage digital
technology and services to build economies that are more
In Sub-Saharan Africa, resilient to future shocks, enhance productivity and efficiency
40% of the adult in service delivery, and ensure more inclusive socioeconomic
development.
population are now
In Sub-Saharan Africa, 40% of the adult population are now
connected to mobile connected to mobile internet services. However, another 44% live
internet services. in areas covered by mobile broadband networks but do not yet
use mobile internet services (the usage gap). Addressing the main
barriers to mobile internet adoption for these people, including
affordability and digital skills, should be a priority for stakeholders
in order to realise the potential of mobile connectivity to drive
economic growth and development in a post-pandemic world.

2
Executive summary The Mobile Economy Sub-Saharan Africa 2022

5G activities
gather
momentum as 3G
begins to decline

5G-related activities are beginning to

pick up across the region. These include
5G spectrum auctions, 5G pilots and
commercial trials, and efforts to develop
locally relevant 5G use cases. For example,
South Africa’s ICASA completed the
spectrum auction for frequencies in the 700,
800, 2600 and 3500 MHz bands in May
2022; MTN Nigeria launched a commercial
pilot for its 5G network in August 2022;
and Vodacom launched a commercial 5G
network in September 2022. Following the
huge demand for connectivity in the wake
of the Covid-19 pandemic, there is growing
interest in the role of 5G in the connectivity
landscape.
While the general consensus remains that
a widespread 5G rollout is more of a long-
term prospect in Sub-Saharan Africa, there
is a strong case to utilise the technology in
some scenarios to serve certain connectivity
requirements for individuals and enterprises.
Although 3G will remain the dominant
connectivity technology in Sub-Saharan
Africa, accounting for over half of total
connections by 2025, this year marks a
turning point as 3G adoption begins to
decline for the first time. This reflects the
growing shift towards 4G as operators take
steps to migrate customers from legacy
networks (2G and 3G). By 2025, 4G will
account for a third of mobile connections
in the region, compared to under a fifth of
connections in 2021.

3
 The Mobile Economy Sub-Saharan Africa 2022 Executive summary

Subscriptions
growth remains
strong

By the end of 2021, 515 million people

subscribed to mobile services in Sub-
Saharan Africa, representing 46% of the
population – an increase of almost 20
million on 2020. There will be nearly 100
million new subscribers by 2025, taking
the total number of subscribers to 613
million (50% of the region’s population).
The two most populated countries –
Nigeria and Ethiopia – will account for
almost a third of new subscribers in the
period to 2025.
Sub-Saharan Africa’s demography, with
a sizeable proportion of the population
under the age of 18, means that
subscriber growth will remain strong
for the foreseeable future as young
consumers move into adulthood and
are able to subscribe to mobile services. Mobile continues to
Meanwhile, young subscribers are
more likely to be tech-savvy and keen
contribute to economic
on adopting mobile internet services, growth
particularly more advanced 4G and,
where available, 5G services. This is one
trend to watch, given the implications
for high-speed connectivity and the In 2021, mobile technologies and services generated
creation and distribution of digital around 8% of GDP across Sub-Saharan Africa, a
services in the region. contribution that amounted to almost $140 billion of
economic value added. The mobile ecosystem also
supported more than 3.2 million jobs (directly and
indirectly) and made a substantial contribution to the
funding of the public sector, with $16 billion raised through
taxes on the sector. By 2025, mobile’s contribution
will grow by $65 billion (to almost $155 billion), as the
countries in the region increasingly benefit from the
improvements in productivity and efficiency brought
about by the increased take-up of mobile services.

4
Executive summary The Mobile Economy Sub-Saharan Africa 2022

Policymakers can
help spur inclusive
development

Mobile connectivity has the potential to

accelerate Sub-Saharan Africa’s digital
transformation and drive socioeconomic
advancement in areas such as healthcare,
education, digital commerce, industrial
automation and smart city infrastructure.
Realising this potential requires policy
measures to support network investments
and improve the affordability of digital
services for consumers. Governments
and regulators in the region should
therefore adopt forward-looking spectrum
management and fiscal policies, which
includes:
• creating a spectrum roadmap to ensure
there is enough spectrum to meet surging
demand for mobile services in both the
short and long term
• ensuring access to mid-band spectrum, in
particular 3.5 GHz, given its importance to
the future of 5G
• accelerating access to sub-1 GHz spectrum
to provide widespread rural mobile
broadband services
• applying best-practice principles of
taxation as recommended by international
organisations such as the World Bank and
the IMF.

5
 The Mobile Economy
Sub-Saharan Africa
Unique mobile subscribers

2021
515m 46% 50%

613m
2021 2025

2025 Penetration rate

Percentage of population
CAGR
2021-2025 4.5%

Percentage of connections Percentage of connections

Smartphones (excluding licensed cellular IoT)
4G (excluding licensed cellular IoT)

2021
49% 17%
2021

33%
2025

2025
61% 5G Percentage of connections
(excluding licensed cellular IoT)

41m connections
in 2025
4% of total connections

SIM connections (excluding licensed cellular IoT)

2021
917m Penetration rate
Percentage of population
82%
2021
89%
2025

2025
1.09bn 4.5%
CAGR
2021-2025
 Operator revenues and investment

Operator capex

2021
$46.6bn $29.5bn
2025
$57.4bn Total revenues
2022 2025

Mobile industry contribution to GDP Public funding

2021
$138bn 8%
of GDP
2021
$16bn
$154bn
Mobile ecosystem contribution to
public funding (before regulatory
2025 and spectrum fees)

Employment Plus an additional

400,000 jobs
2.8 million
informal jobs
and jobs in
Formally supported by the mobile other parts
ecosystem in 2021
of the economy
 The Mobile Economy Sub-Saharan Africa 2022 Executive summary

Subscriber and technology trends in key markets

ECCAS TECHNOLOGY MIX* SUBSCRIBER PENETRATION

46+23
43+110F +53231F
<1% 2021 2025
11% 23% 23%
46%
43% 47%
2021 2025
SMARTPHONE ADOPTION

53% 2021 2025

43%

2G 3G 4G 5G
41% 51%

ECOWAS TECHNOLOGY MIX* SUBSCRIBER PENETRATION

25+9
60+150F +56323F
3% 9% 2021 2025
15% 25% 32%
50% 53%
2021 2025
SMARTPHONE ADOPTION

2021 2025
56%
60%
2G 3G 4G 5G
44% 62%

SADC TECHNOLOGY MIX* SUBSCRIBER PENETRATION

27+10
50+221F +43416F
<1% 6% 10% 2021 2025
22% 27% 41%
47% 50%
2021 2025
SMARTPHONE ADOPTION

2021 2025
43%
50%
2G 3G 4G 5G
55% 66%

* Percentage of total mobile connections (excluding licensed cellular IoT)

Note: Totals may not add up due to rounding

8
Executive summary The Mobile Economy Sub-Saharan Africa 2022

EAC1 TECHNOLOGY MIX* SUBSCRIBER PENETRATION

35+13
51+140F +58263F
3% 2021 2025
14% 26% 13%
35%
45% 48%
2021 2025
SMARTPHONE ADOPTION

58% 2021 2025

51%

2G 3G 4G 5G
42% 56%

Ethiopia TECHNOLOGY MIX* SUBSCRIBER PENETRATION

0+900+78
10F +184F
9% 4% 2021 2025

34% 40%
18%

2021 2025
SMARTPHONE ADOPTION

2021 2025
78%
90%
2G 3G 4G 5G
43% 48%

1. The Democratic Republic of Congo (DRC) joined the EAC in March 2022 but has not been included in the data for the EAC in this report.

9
 The Mobile Economy Sub-Saharan Africa 2022 The mobile market in numbers

01
The mobile
market in
numbers

10
The mobile market in numbers The Mobile Economy Sub-Saharan Africa 2022

1.1 Mobile adoption continues to increase

Figure 1
Key milestones for the mobile industry in Sub-Saharan Africa to 2025

Nearly 1.5 million 300 million

5G connections 4G connections

4G adoption reaches 20% 5G adoption reaches 2%

Smartphone adoption 600 million smartphone

reaches 50% connections

2022 2023 2024 2025

3G adoption begins
40 million 5G connections
to decline

1 billion total 4G adoption reaches a

mobile connections third of total connections

80% mobile 50% mobile subscriber

broadband adoption penetration

Source: GSMA Intelligence

Figure 2
There will be nearly 100 million additional mobile subscribers in Sub-Saharan
Africa by 2025; Nigeria and Ethiopia will account for almost a third of these
New mobile subscribers (million)

45 613

8 6 5 4
18 12
515

Total Nigeria Ethiopia DRC Tanzania Kenya Uganda Others Total

subscribers subscribers
in 2021 in 2025

Source: GSMA Intelligence

11
 The Mobile Economy Sub-Saharan Africa 2022 The mobile market in numbers

Competition will drive subscriptions growth in Ethiopia

Ethiopia is Sub-Saharan Africa’s second-largest market, having a population of around 120 million.
With a mobile penetration rate of just 34% at the end of 2021, compared to the regional average of
46%, Ethiopia has significant headroom for mobile subscriptions growth.
In August 2022, Safaricom Ethiopia announced a large-scale customer pilot of its network in
Dire Dawa city and the Harari Region, as part of a phased city-by-city regional network rollout.
Customers will be connected to 2G, 3G and 4G networks, allowing them to access voice, SMS and
data services.
Safaricom Ethiopia’s national launch will take place in October 2022, with the operator aiming
to extend services to 25 cities in total by April 2023. The liberalisation of the telecoms sector is
expected to drive subscriptions growth as competition between the incumbent operator Ethio
Telecom and new entrant Safaricom Ethiopia brings down prices for consumers, stimulates
investment in network infrastructure and inspires the development of innovative adjacent services.

1.2 4G accelerates as 3G reaches its peak

Figure 3
Adoption of 4G is picking up and will overtake 2G in 2023; 3G adoption reached
its peak in 2022
Percentage of connections (excluding licensed cellular IoT)

60%
56%
53% 3G
50%

40%

33% 4G
30%
27%

20%
17%

10% 10% 2G

4% 5G
0% 0%
2021 2022 2023 2024 2025

Source: GSMA Intelligence

12
The mobile market in numbers The Mobile Economy Sub-Saharan Africa 2022

Figure 4
By 2025, 5G will account for 4% of total connections in Sub-Saharan Africa,
compared to the global average of 25%
5G adoption in 2025 (percentage of total connections)
5G
connections
Global average 25% in 2025

Developed Asia Pacific* 67% 198m

Leading 5G markets

North America 64% 278m

China 59% 1bn

GCC Arab States 50% 41m

Europe 44% 311m

Latin America 12% 75m

Emerging 5G markets

Rest of MENA 11% 85m

Rest of Asia Pacific 9% 231m

Russia & CIS 7% 30m

Sub-Saharan Africa 4% 41m

Source: GSMA Intelligence

* Australia, Japan, Singapore and South Korea

1.3 Smartphone adoption and data traffic on the rise

Figure 5
By 2025, smartphones will account for 61% of total connections, on average, in
Sub-Saharan Africa
Smartphone adoption (percentage of total connections) in the top six markets in Sub-Saharan Africa

2025
76% 2021
67% 68% 67% 64%
61% 61%
56%
49% 46% 48%
44% 45% 43%

Sub-Saharan South Africa Kenya Cote d’Ivoire Nigeria Tanzania Ethiopia

Africa average

Source: GSMA Intelligence

13
 The Mobile Economy Sub-Saharan Africa 2022 The mobile market in numbers

Figure 6
Mobile data consumption in Sub-Saharan Africa will nearly quadruple by 2027,
though it will continue to lag behind the global average by a wide margin
Mobile data traffic per smartphone (GB per month)

Sub-Saharan Africa Global average

11 40
2027

2027

3.8x
3.3x

2.9 12
2021
2021

Source: Ericsson

Growing interest in online gaming will drive smartphone adoption and

data traffic
Gaming is a popular pastime for people of all ages. According to GSMA Intelligence research,
58% of the adult population across 10 major countries analysed play digital games at least once a
week. There are several factors driving the growth in gaming: advances in streaming technology
and the proliferation of cloud/edge infrastructure; the on-demand content consumption habits of
millennials; the shift in gaming consumption from consoles to mobile devices, with smartphones
the most popular gaming device; and improvements in mobile and fixed networks in terms of
speed, reliability, latency and coverage, all of which are key capabilities for an enhanced gaming
experience.
In Sub-Saharan Africa, the number of gamers has more than doubled in the last five years to
186 million people, according to a study commissioned by game analytics company Newzoo
and Carry1st, a South African gaming platform. This is largely being driven by mobile gaming –
95% of gamers across the region play on a smartphone or tablet, as opposed to consoles and
computers. Within the region, South Africa has the highest number of gamers at 24 million people,
representing 40% of its population, followed by Ghana (27%), Nigeria (23%), Kenya (22%) and
Ethiopia (13%).2

2. https://gamesindustryafrica.com/2021/11/29/gaming-in-sub-saharan-africa-more-than-doubles/

14
The mobile market in numbers The Mobile Economy Sub-Saharan Africa 2022

1.4 Revenue growth outlook remains strong

Figure 7
Mobile revenue will grow steadily to 2025 thanks in part to rising data usage
Mobile revenue (billion)

7.6%

6.1%
5.9% 5.7%
$48.4
$57.4
$54.3
$51.3
$46.6
3.8%

2021 2022 2023 2024 2025

Revenue Annual growth rate

Source: GSMA Intelligence

Figure 8
Mobile operators will invest nearly $30 billion in their networks between
2022 and 2025
Operator capex (billion)

17%

14%
13% 12%

$8.4
$7.0 $7.0 $7.1

2022 2023 2024 2025

Capex Capex/revenue

Source: GSMA Intelligence

15
 The Mobile Economy Sub-Saharan Africa 2022 Key trends shaping the mobile industry

02
Key trends
shaping the
mobile industry

16
Key trends shaping the mobile industry The Mobile Economy Sub-Saharan Africa 2022

2.1 5G: momentum builds for 5G-related activities

At the end of September 2022, 214 mobile operators That said, 5G-related activities are beginning to
in 81 markets worldwide had launched commercial gather pace across the region. These include 5G
5G services. 5G is becoming mainstream in pioneer spectrum auctions, 5G pilots and commercial trials,
markets. For example, the technology now accounts and efforts to develop locally relevant 5G use
for nearly half of mobile connections in South Korea cases. Following the huge demand for connectivity
and more than a third in the US. Momentum has in the wake of the Covid-19 pandemic, there is
been boosted by a number of factors, including growing interest in the role of 5G in the connectivity
economic recovery from the pandemic, rising 5G landscape. While the general consensus remains that
handset sales and overall marketing efforts. mass 5G rollouts are more of a long-term prospect
in Sub-Saharan Africa, there is a strong case to
The 5G era in Sub-Saharan Africa has got off to a
utilise the technology in some scenarios to serve
gradual start; at the end of September 2022, full
certain connectivity requirements for individuals and
commercial 5G services were available in fewer than
enterprises.
five countries across the region. This is in large part
due to a greater emphasis by operators and other
stakeholders on migrating customers on legacy
networks (2G and 3G) to 4G networks. At the end
of 2021, 4G accounted for just 17% of total mobile
connections in Sub-Saharan Africa, compared to the
global average of 59%. This trend will continue in
the short-to-medium term, given the opportunity to
maximise the utilisation of existing 4G capacity and
the cost implications of mass 5G rollouts.

17
 The Mobile Economy Sub-Saharan Africa 2022 Key trends shaping the mobile industry

Figure 9
Examples of recent 5G activities in Sub-Saharan Africa

In February 2022, Mascom in Botswana launched its first 5G services in the capital,
Gaborone. The operator plans to install 5G at 111 sites across the country by the end
Botswana of the year.

In December 2021, MTN began trials of 5G equipment in several sites across Abidjan.
The Cote d’Ivoire government wants 5G networks to go live ahead of the Africa Cup
Cote d’Ivoire of Nations football tournament, which it will host in 2023.

In May 2022, Ethio Telecom launched a pre-commercial 5G network across six

mobile stations in the capital city of Addis Ababa. The operator plans to deploy 150
Ethiopia 5G sites within and outside of Addis Ababa over the next year.

In August 2022, Safaricom and Nokia performed a pilot test for a 4G and 5G fixed
wireless access (FWA) network slicing on the operator’s live commercial network. In
May 2022, the Communications Authority of Kenya allocated 60 MHz of spectrum in
Kenya the 2600 MHz band to Safaricom for 5G expansion.

In August 2022, MTN announced that it had begun its pilot test of 5G in Nigeria. The
operator deployed over 190 5G sites in Lagos, Abuja, Port Harcourt, Ibadan, Kano,
Owerri and Maiduguri – with more expected to go live ahead of full commercial
Nigeria launch.

In March 2022, the Independent Communications Authority of South Africa

completed the spectrum auction for frequencies in the 700, 800, 2600 and 3500
MHz bands. The spectrum has been allotted for a 20-year period on a technology-
neutral basis, enabling operators to extend 4G and 5G rollouts.
In June 2022, MTN announced plans to ramp up 5G coverage, with a target to reach
South Africa 25% of the population by the end of 2022. MTN is also rolling out 5G experiential
zones in major shopping centres to showcase the capabilities of the technology and
make these benefits available across 5G gaming, smart home and motion tracking.

In September 2022, Vodacom Tanzania launched a commercial 5G network. The

operator plans to establish over 200 5G sites in Tanzania’s regions by the end of
2022, including Dar es Salaam, Arusha, Dodoma, Mwanza, Iringa, Kagera, Njombe
Tanzania and Zanzibar.

In February 2022, Econet Wireless launched a 5G network in Harare. The operator

has extended coverage to other areas, including Bulawayo, Chitungwiza, Gweru and
Zimbabwe Victoria Falls.

Source: GSMA Intelligence, company announcements

18
Key trends shaping the mobile industry The Mobile Economy Sub-Saharan Africa 2022

Rising 5G device shipments bode well for 5G adoption

The availability of 5G devices – and at affordable prices – will be crucial to 5G adoption in Sub-
Saharan Africa. This is especially true given that the sluggish uptake of 4G across the region is,
in large part, attributable to the high cost of devices relative to average income levels. That said,
smartphone shipment data for the region suggests growing demand for 5G-enabled devices. For
example, in the second quarter of 2022, the shipment of 5G-enabled devices increased by 26.9%,
significantly outpacing the overall growth of smartphone shipments to the region.3
Growth is being driven by a number of factors, including a young and tech-savvy population with
a taste for the latest technology and increasing competition among handset-makers to bring the
most advanced but affordable models to market. Cheaper devices are mainly being produced by
Chinese vendors, with Transsion brands – Tecno, Itel and Infinix – being the clear market leaders
in terms of number of sales. In August 2022, Chinese brand Realme announced in Kenya that it
will increase its research and development budget by 58% to make advanced smartphone models
with designs that appeal to young customers across Africa.

2.2 Telco of the future: a new wave of tower deals

There was a flurry of tower sale-and-leasebacks in have set up independent companies to house their
Africa between 2010 and 2016 as mobile operators mobile towers in Europe. This strategy is designed
hived off their tower assets to third-party tower to provide investors with a clearer valuation of
companies (towercos). This was fuelled by a need these assets. Elsewhere, Verizon has expanded its
to streamline operating costs and raise funds to partnership with American Tower Company, and TPG
offset mounting debts. This was then followed by a in Australia and Zain Jordan have signed sale-and-
period of relative inactivity, as towercos focused on leaseback deals with established towercos.
consolidating and optimising their existing portfolios
Mobile operators have taken different approaches
to boost profitability.
to tower ownership, as demonstrated by recent
A number of new deals in recent years, however, announcements. Towercos in Sub-Saharan Africa
signify a new wave of activity in the towers market have mostly focused on passive infrastructure assets.
as operators explore new network infrastructure However, Africa Mobile Networks represents a new
models and seek further operational efficiencies, type of towerco in the region, with ownership of
in the context of the network densification active and passive infrastructure assets in rural areas.
requirements of 5G. This trend is not unique to Sub- This new model could help unlock the business case
Saharan Africa; operators in several other regions for network deployments in hard-to-reach areas.
have also announced significant tower deals in the
last two years. For example, Orange and Vodafone

3. Worldwide Quarterly Global Mobile Phone Tracker, IDC

19
 The Mobile Economy Sub-Saharan Africa 2022 Key trends shaping the mobile industry

Figure 10
Timeline of recent tower deals in Sub-Saharan Africa, 2020–2022

Free Senegal entered into a 15-year service agreement with Helios Towers.
Aug The deal involves the sale-and-leaseback of over 1,200 towers and the
2020
construction of an additional 400 towers.

Airtel Africa agreed a sale-and-leaseback deal for its tower assets in

Mar Madagascar, Malawi, Chad and Gabon with Helios Towers. The deal involves
2021 Helios Towers acquiring 2,227 sites, including a build-to-suit commitment
for 315 additional new sites.

Airtel Africa agreed to sell its Tanzania tower portfolio to SBA

Jun
2021 Communications Corporation and Paradigm Infrastructure. The portfolio
comprises around 1,400 towers.

MTN announced that IHS Towers had completed the acquisition of

Jun 5,701 of its network towers in South Africa. The agreement also involves
2022 the provision of power management services to MTN South Africa on
approximately 13,000 sites.

Vodacom Group announced that it will retain full ownership of a new

Jul subsidiary that will take over its South African tower business. Vodacom’s
2022 tower company will own more than 9,500 sites, including towers and
rooftops.

Source: GSMA Intelligence, company announcements

20
Key trends shaping the mobile industry The Mobile Economy Sub-Saharan Africa 2022

2.3 Sub-Saharan Africa grows presence in the metaverse

The Covid-19 pandemic has spurred new ways invested in building out metaverse technology and
of working and living, accelerating the shift infrastructure, more than double the $57 billion
to digitalisation, including virtual experiences. invested in all of 2021.4
Unsurprisingly then, the concept of the metaverse,
The metaverse ecosystem is growing around the
a parallel virtual world populated with avatars,
world, including in Sub-Saharan Africa. Indeed,
has gained significant attention. In essence, the
the region presents significant growth prospects
metaverse allows individuals to consume media
for the metaverse, given its young tech-savvy
content, purchase items, generate tokens or
population and thriving tech startup ecosystem.
participate in recreational activities without the
This is beginning to attract the attention of global
geographical restrictions, safety concerns and
metaverse ecosystem players. For example, Meta
other physical limitations associated with real-life
has launched a two-year $50 million ‘XR Programs
experiences.
and Research Fund’ to build the metaverse,
The metaverse (which continues to lack a universally which includes funding for the ‘Future Africa:
agreed-upon definition) is still nascent. However, Telling Stories, Building Worlds’ programme. The
the significant levels of investment in metaverse programme provides grants of up to $30,000 and
initiatives and market-size estimates reflect the mentorship. It also supports VR storytellers to
opportunities possible from the rapid advancement develop new and compelling content about Africa
of the metaverse over the coming years. In the first and showcase innovative storytelling that shifts
five months of 2022, more than $120 billion was negative stereotypes about Africa.

4. “Meet the metaverse: Creating real value in a virtual world”, McKinsey, June 2022

21
 The Mobile Economy Sub-Saharan Africa 2022 Key trends shaping the mobile industry

A growing number of local ecosystem players have

announced various activities across the metaverse value
chain, including the following:
• Africarare, Africa’s first metaverse, has announced plans
to commercialise the 3D virtual reality experience that is
set in Ubuntuland, a virtual world that merges creativity,
cryptocurrency and commerce. In February 2022, MTN
revealed that it had purchased 144 plots of virtual land in
Ubuntuland.
• Thrill Digital in Nigeria uses AR/VR, crypto and gaming
to create a fashion metaverse. The firm won a $40,000
grant from Epic Games (a US video game and software
developer investing in metaverse development) to start
Astra, a play-to-earn crypto game where players try to
amass as many tokens as they can within an allotted time
to win real-life luxury fashion items.
The metaverse can be applied across a wide range of
use cases in Sub-Saharan Africa, notably work, gaming,
education, healthcare and advertising. It could provide a
platform to deliver unique virtual experiences, overcoming
the physical limitations for many services in the region.
That said, the underdevelopment of the metaverse
ecosystem in the region – especially with respect to device
availability and affordability, content and services, and
access to high-speed connectivity – could limit uptake in
the short term.
Mobile operators will play a central role in the future
development of the metaverse in Sub-Saharan Africa.
Primarily, mobile networks, particularly 5G, will provide
the required connectivity for the metaverse in the region.
Beyond connectivity, operators can also participate in
other parts of the value chain, as has been demonstrated in
other regions. For example, SK Telecom launched the Ifland
platform for users to make digital interactions in a virtual
environment, and AT&T has partnered with Quintar, a
sports entertainment AR business, to create and deliver in-
game AR experiences to sports fans in stadia and venues.
These examples highlight the opportunity for operators
to capture additional value elsewhere in the value chain,
particularly in developing platforms, content and services
in the metaverse. Leveraging new and existing relationships
to create partnerships within the telecoms industry and
beyond will be necessary to capitalise on the potential of
the metaverse.

22
Mobile contributing to economic growth
The Mobile Economy Sub-Saharan Africa 2022
and social progress

03
Mobile contributing to
economic growth and
social progress

23
 Mobile contributing to economic growth
The Mobile Economy Sub-Saharan Africa 2022
and social progress

3.1 Mobile’s contribution to economic growth

In 2021, mobile technologies and services generated By 2025, mobile’s contribution will grow by
around 8% of GDP across Sub-Saharan Africa, a approximately $16 billion (to almost $155 billion),
contribution that amounted to almost $140 billion as the countries in the region increasingly benefit
of economic value added. The mobile ecosystem from the improvements in productivity and
also supported more than 3.2 million jobs (directly efficiency brought about by the increased take-up
and indirectly) and made a substantial contribution of mobile services.
to the funding of the public sector, with $16 billion
raised through taxes on the sector.

Figure 11
The Sub-Saharan Africa mobile ecosystem directly generated $40 billion of
economic value in 2021, with mobile operators accounting for the vast majority
Billion, percentage of GDP

$33

1.9%

$7

0.4%

Mobile operators Rest of mobile ecosystem

Source: GSMA Intelligence

24
Mobile contributing to economic growth
The Mobile Economy Sub-Saharan Africa 2022
and social progress

Figure 12
Additional indirect and productivity benefits brought the total contribution of the
mobile industry to the regional economy to almost $140 billion in 2021
Billion, percentage of GDP

4.9% 7.9%

$90 $140
MOBILE ECOSYSTEM

0.6%
0.4%
1.9%
$10
$10
$30

Mobile Rest of mobile Indirect Productivity Total

operators ecosystem

Source: GSMA Intelligence

Note: Totals may not add up due to rounding.

Figure 13
In 2021, the mobile ecosystem formally employed more than 400,000 people in
Sub-Saharan Africa and supported another 2.8 million informal jobs and jobs in
other parts of the economy
Jobs (thousands)

1,790 3,260

1,020 1,460

440

Formal Informal Direct Indirect Total

Source: GSMA Intelligence

Note: Totals may not add up due to rounding.

25
 Mobile contributing to economic growth
The Mobile Economy Sub-Saharan Africa 2022
and social progress

Figure 14
In 2021, the mobile ecosystem in Sub-Saharan Africa contributed $16 billion to the
funding of the public sector through consumer and operator taxes
Billion

$6 $16

$10

Services and handset Corporate and Total

VAT, sales taxes and employment taxes
excise duties

Source: GSMA Intelligence

Figure 15
Driven mostly by continued expansion of the mobile ecosystem, the economic
contribution of mobile in Sub-Saharan Africa will increase by around $16 billion
by 2025
Billion
$150 $154
$143 $146
$138

$90 $91
$91 $90
$87

$13 $13
$11 $11 $12

$44 $47 $50

$40 $41

2021 2022 2023 2024 2025

Direct Indirect Productivity Total contribution

Source: GSMA Intelligence

Note: Totals may not add up due to rounding.

26
Mobile contributing to economic growth
The Mobile Economy Sub-Saharan Africa 2022
and social progress

3.2 Mobile enabling a more inclusive society

As the primary way most people access the internet By the end of 2021, around 40% of the adult
in Sub-Saharan Africa, mobile is driving digital population in Sub-Saharan Africa subscribed to
inclusion. This delivers significant economic benefits, mobile internet services. Although this figure is a
reduces poverty and transforms lives by providing marked increase from the 35% at the start of the
people with access to a range of life-enhancing pandemic, it still lags behind the global average of
services. 70% by a considerable margin.

Figure 16
The coverage gap is narrowing across Sub-Saharan Africa, but the usage gap
remains a challenge
Percentage of adult population, 2021

4%

13% 11% 15%

16%
26% 38%

41%
44% 41%
55%

33%
70%

49% 44%
40%
29% 32%

Global Sub-Saharan Central Eastern Southern Western

average Africa Africa Africa Africa Africa

Connected Usage gap Coverage gap

Source: GSMA Intelligence

27
 Mobile contributing to economic growth
The Mobile Economy Sub-Saharan Africa 2022
and social progress

Mobile operators remain at the forefront of efforts to • Orange Mali has partnered with Intelsat to extend
close both the coverage5 and usage gaps6 in Sub- mobile broadband services to rural areas. The
Saharan Africa. A number of new and innovative deployment of 4G over satellite is viewed as an
solutions have been proposed and, in some cases, optimal solution given Mali’s land mass.
implemented to improve the economics of rural
Mobile operators are also supporting efforts to close
deployment. Notable examples include network
the usage gap through various initiatives to remove
sharing, community networks and open RAN.
the non-infrastructure barriers to mobile internet
Satellite connectivity has long been touted as a adoption. For example, MTN launched its flagship
possible solution to the challenge of providing digital literacy programme, MTN Data Smart, in
connectivity in hard-to-reach locations. Momentum 2019, which is based on the GSMA’s Mobile Internet
behind the technology has built over the last two Skills Training Toolkit (MISTT)7 and uses a hybrid
years, driven by the emergence of the low Earth approach that includes remote delivery methods
orbit (LEO) constellation model, which promises alongside traditional face-to-face training.8 In 2021,
a reduced cost structure and higher-performance the operator trained 24 million people across 12
capability relative to legacy geostationary satellites countries through this initiative.9
that operate at much higher altitudes. Also, the
The barriers to mobile internet adoption are
basic model for LEO constellations is to integrate
particularly acute among certain segments of the
with mobile networks – 3G, LTE and eventually
population, including the poorest, those in rural
5G – creating opportunities for partnerships with
areas, women, persons with disabilities and the
operators, which is often important for the delivery
elderly – or a combination thereof. The mobile
of services to users on the ground. This is evidenced
internet gender gap in Sub-Saharan Africa remains
by some recent partnerships between mobile and
at 37% and women in the region are now 30% less
satellite operators:
likely than men to own a smartphone. This has grown
• Orange Senegal is working with SES to create a steadily from 22% in 2017 because of smartphone
gateway for the O3b mPOWER constellation. The ownership by men far outpacing that of women. The
installation will help deliver low-latency and cloud- top barriers for women using the mobile internet or
optimised connectivity services. owning a smartphone in Africa include literacy and
digital skills and affordability.
• Vodacom DRC has selected Intelsat to provide its
Ku-band satellite services. The backhaul service Driving mobile internet adoption among these user
and Intelsat’s Ku-band capacity will enable segments remains a focus for operators in Sub-
Vodacom to extend mobile connectivity to areas Saharan Africa, as highlighted by industry efforts to
where fibre or microwave backhaul networks are improve connectivity among low-income and rural
not yet available or where they are unfeasible to users. Meanwhile, the GSMA’s Mobile Disability Gap
deploy. Report10 also shows a gap in mobile ownership and
smartphone usage among persons with disabilities.
• Free Senegal has signed a deal with Avanti
For operators, developing inclusive products and
Communications to build a satellite gateway for
services that meet the diverse needs of persons with
the latter’s Hylas 4 Ka-band satellite. The new
disabilities is an important step.
gateway will go live by December 2022, subject to
regulatory approval, and will serve neighbouring
countries, including Guinea, Sierra Leone, Guinea
Bissau, Gambia and Liberia.

5. People without access to mobile internet services

6. People who live in areas covered by mobile broadband networks but do not yet use mobile internet services
7. MISTT is a set of resources for mobile operators, NGOs, development organisations and governments that want to provide training to improve people’s basic knowledge and
understanding of mobile internet.
8. For more information, see MTN Data Smart: Increasing mobile internet access and use through digital skills training, GSMA, 2021
9. Sustainability Report for the year ended 31 December 2021, MTN
10. The Mobile Disability Gap Report 2021, GSMA, 2021

28
Mobile contributing to economic growth
The Mobile Economy Sub-Saharan Africa 2022
and social progress

Orange partners with UN Women to close the digital gender gap

In March 2022, Orange and UN Women announced a partnership to support digital inclusion and
economic empowerment for women in rural West Africa. They are collaborating on UN Women’s
Buy from Women initiative, which gives women living in rural areas access to digital technology
and new market opportunities and also provides information, weather warnings and digital
financial services. In addition to providing financial assistance, Orange and the Orange Foundation
offer unique technical expertise, network resources and existing infrastructure in digital skills,
technologies and digital inclusion. The initiative has been implemented in several countries,
including Côte d’Ivoire, Mali, Rwanda, South Africa and Senegal.

29
 Mobile contributing to economic growth
The Mobile Economy Sub-Saharan Africa 2022
and social progress

Safaricom drives the digital inclusion of visually impaired customers

in Kenya
Challenge: Following an audit of its products and services to understand usage by persons with
disabilities, Safaricom found that individuals with visual impairment were the most excluded
category of users. For example, some customers with vision impairment had to ask third parties to
make transactions for them, which left them vulnerable to fraud and security risks.
Solution: To support users with visual impairments, Safaricom built an interactive voice response
platform to help them query the balance of their M-Pesa account. Safaricom also introduced
Jitambulishe, a voice biometrics service that allows a customer to create a vocal password for
easier access to services such as resetting their M-Pesa PIN and for PUK requests. Further, the
operator worked in partnership with Dot Incorporation to launch the Dot Watch, which enables
users to read all SMS notifications in Braille.11
Impact: Initiatives such as these give persons with visual impairments greater confidence when
using mobile devices, which can unlock the life-enhancing potential of smartphones as an assistive
technology and gateway to digital inclusion.

Orange helps young people to build skills that employers demand

Challenge: In Sub-Saharan Africa, the supply of labour outweighs demand. Since most young
people cannot find formal jobs, they take up informal income-generating opportunities instead.
Part of the reason for the lack of formal jobs for young people is that they lack the skills employers
demand.12
Solution: The Orange Foundation leads a range of initiatives to boost digital skills, such as the
Orange Digital Centers (ODCs),13 which bring together three complementary programmes aimed
at providing free and inclusive resources to support local tech startups and entrepreneurs:
• Coding School: A freely accessible technological centre that offers training and events for the
community of young developers.
• Solidarity FabLab: A digital production workshop for creating and prototyping with digital
equipment, such as 3D printers, milling machines and laser cutters.
• Orange Fab: A startup accelerator with an aim to build national and international business
partnerships with the Orange Group and the international Orange Fab network.
Impact: Orange has opened ODCs in nine countries and intends to set up an ODC in each of its
26 operating countries by 2025. This will help people acquire new digital skills, in addition to
promoting entrepreneurship and enhancing job prospects.

11. Driving the Digital Inclusion of Persons with Disabilities: Policy considerations for low- and middle-income countries, GSMA, 2022
12. Informal Youth Employment in the Mobile Industry in Sub-Saharan Africa, GSMA, 2021
13. For more information, see https://www.orangedigitalcenters.com/

30
Policies for inclusive digital development The Mobile Economy Sub-Saharan Africa 2022

04
Policies for
inclusive digital
development

31
 The Mobile Economy Sub-Saharan Africa 2022 Policies for inclusive digital development

The Covid-19 pandemic has highlighted the increasing importance of digital

technology to responding effectively to crises and planning for recovery. At the
same time, the crisis has created the potential to accelerate Sub-Saharan Africa’s
digital transformation and to develop resilient digital jobs in the region. The
continued rollout of 4G and the first stages of the 5G era enable opportunities in
areas such as healthcare, digital commerce, industrial automation and smart city
infrastructure.

Realising this potential requires policy measures • ensuring access to mid-band spectrum, in
to support network investments and improve the particular 3.5 GHz, given its importance to the
affordability of digital services for consumers. future of 5G
Governments and regulators in the region should
• accelerating access to sub-1 GHz spectrum
therefore adopt forward-looking spectrum
to provide widespread rural mobile broadband
management and fiscal policies, which includes:
services
• creating a spectrum roadmap to ensure there
• applying best-practice principles of taxation as
is enough spectrum to meet surging demand for
recommended by international organisations such
mobile services in both the short and long term
as the World Bank and the IMF.

Spectrum management
Effective spectrum licensing, from roadmap to At its core, a spectrum licensing framework should:
assignment, is critical to encourage the investment
• ensure access to sufficient spectrum for
required to expand mobile access, meet the increase
operators
in demand for data services and enhance the quality
and range of services offered. • provide predictability to support the new
network investment needed
• avoid costly restrictions on the use of spectrum
beyond those needed to manage interference.

Spectrum roadmaps
A spectrum roadmap is essential to ensure there Key themes for a spectrum roadmap should include:
is enough spectrum to meet surging demand for
• identifying emerging opportunities and
mobile services in both the short and long term.
challenges to a radio spectrum framework at least
Roadmaps help governments forecast future trends
three to five years in advance
and manage their work. For mobile operators,
roadmaps mean increased certainty to invest based • determining future technological trends and
on the government’s future allocation, renewal plans drivers, and assessing their impact on spectrum
and management of radio spectrum. policy and planning
• planning spectrum management programmes to
address challenges and maximise opportunities
• creating a plan to review and update the
roadmap regularly, with an annual review being
recommended.

32
Policies for inclusive digital development The Mobile Economy Sub-Saharan Africa 2022

Spectrum pricing
High spectrum prices continue to hinder the rollout speeds and increased service adoption. The main
of mobile services in both cities and rural areas. goal of governments around the world should be to
However, for countries willing to take a different get the most out of mobile spectrum resources. The
approach, larger amounts of spectrum and lower GSMA has developed 10 positions on the importance
spectrum prices are strongly linked to greater of fair spectrum pricing to support the effective
population coverage, as well as better download management of spectrum resources.14

Access to mid-band spectrum

Mid-band spectrum, in particular 3.5 GHz, is value and balancing different uses. To ensure access
important for the future of 5G because it offers a to sufficient spectrum, governments and regulators
good mix of coverage and capacity. In the short should carefully consider the following:
term, operators should have access to 80–100 MHz
• Mobile networks will need, on average, 2 GHz of
of contiguous spectrum in this band. Meeting
mid-band spectrum per country by 2030. This is
long-term demand requires forward planning from
challenging to achieve without 6 GHz.
policymakers. GSMA analysis shows that a total of
2 GHz of mid-band spectrum, on average, will be • 6 GHz capacity will be required to meet increasing
required to support the growth of 5G during the customer demand at the required speeds of ITU
2025–2030 time frame. Importantly, the reward for IMT-2020.
reaching the 2 GHz goal is substantial. 5G growth in • Mobile networks are already highly densified, but
Sub-Saharan Africa is expected to develop rapidly 6 GHz can enable the growth of sustainable 5G
in the second half of the decade and continue into capacity on existing sites.
the 2030s. The economic impact of mid-band 5G in
• Timely availability of 6 GHz, at reasonable
the region will be around 0.4% of GDP in 2030; for
conditions and price, will drive cost-efficient
comparison, mid-band 5G already accounts for more
network deployment, help lower the broadband
than 0.4% of GDP in Europe and North America. The
usage gap and support digital inclusion.
overall GDP impact of mid-band 5G in Sub-Saharan
Africa in 2030 will be $13 billion. Therefore, according to market demand, the GSMA
recommends that:
As policymakers look to the future, the 6 GHz band15
offers significant potential. The band is already used • at least 6425–7125 MHz is made available for
for backhaul, and mobile operators are making a licensed 5G by 2030
case for its use in 5G networks. Part of the band is
• 5925–6425 MHz should be considered for licensed
also up for debate at the World Radiocommunication
5G or licence-exempt on a technology-neutral
Conference 2023 (WRC-23). Discussions regarding
basis.
the band’s future need to focus on maximising its

14. Spectrum Pricing: GSMA Public Policy Position, GSMA, 2021

15. 6 GHz in the 5G Era: Global Insights on 5925−7125 MHz, GSMA, 2022

33
 The Mobile Economy Sub-Saharan Africa 2022 Policies for inclusive digital development

Low-band spectrum and the digital switchover

The characteristics of low-band spectrum allow So far, a lack of access to sub-1 GHz spectrum
it to propagate deeper into buildings and give a due to slow digital switchover (DSO) is negatively
consistent user experience across urban and rural affecting coverage expansion. Without this range,
areas at lower cost. But low-band spectrum is a it can be very expensive – and thus impractical
scarce resource and making sufficient bandwidth – to provide widespread rural mobile broadband
available is a complex balancing act for regulators. services. Experiences from around the world show
Finding solutions to increase the amount of available that DSO-related challenges can be resolved and
spectrum is key to the future of 5G expansion, that consumers benefit from the improved coverage
enabling affordable services for all. enabled by this range.

Technology neutrality
Technology neutrality is an important capability Refarming 2G, 3G and 4G bands can, in time, sustain
that must be made available in any current or future the growth of 4G and contribute to meeting some of
band. This gives operators the flexibility to upgrade the future spectrum requirements for 5G, which will
technologies as soon as the market requires. ultimately require new bands.

34
gsma.com
For more information, please visit the
GSMA website at www.gsma.com