Alex Warren discovers that there is an unquenchable thirst for mobile telecommunications across Africa with, surprisingly, the greatest potential seen under the poorest economic conditions
The number of mobile phone users in Africa is rising steeply, making the continent an alluring target for both network operators and handset manufacturers, as well as bringing positive knock-on effects for economic development.
A combination of rising consumer incomes, sustained economic growth, market liberalisation and aggressive competition from operators has fuelled a huge expansion in the region in the past five years.
Mobile-phone users now outnumber fixed telephone users by more than four to one in many markets. This proliferation has exceeded all predictions, to the extent that subscriber numbers in most African countries have more than tripled between 2003 and 2006. In some populous states, such as Algeria, Sudan or Nigeria, this figure has increased tenfold over the same period.
The growth in mobile users has been surprising, given that Africa is home to some of the world's lowest incomes and highest poverty levels. But although the UN Development Programme (UNDP) says that one in every two people in sub-Saharan Africa still lives on less than $1 (50p) a day, the boom has been driven largely by demand from low-income and rural areas.
Despite this, penetration rates across the continent remain very low, only surpassing 20% in a handful of cases, such as Tunisia or South Africa. This leaves a great deal of potential for further growth in the coming years.
Growing economies
The backdrop to this boom has been a sustained period of wider economic development. With some noteworthy exceptions, real GDP growth in most African countries has generally been strong over the past five years. The continent's largest economies, not including South Africa, have mostly enjoyed growth of more than five per cent in 2006, with the top performers being Ethiopia (10.6%), Sudan (12.2%), Angola (15.3%) and …
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