Telecom

High smartphone prices hold back internet penetration in Africa (GSMA

High smartphone prices hold back internet penetration in Africa (GSMA
Monday, 04 October 2021 20:50

The Covid-19 pandemic has forced telecom operators to expand their data capacities. But only a few people, mainly in urban areas, have benefited from this reform. According to the Global System Operators' Association (GSMA), the mobile Internet penetration rate was 28% in sub-Saharan Africa in 2020 compared to a mobile penetration rate of 46%. The association attributes this gap to the high cost of the smartphone whose penetration rate is 48%.

GSMA revealed in "The Mobile Economy Sub-Saharan Africa 2021" report that of the 1,084 million people surveyed in the region, 303 million (28%) were connected, 206 million were not covered by a mobile network at all (19%) and 575 million people (53%) lived in areas covered by mobile broadband networks but were not yet using mobile Internet services.

On the same subject, Alliance for Affordable Internet (A4AI) stated in its 2020 report "From luxury to lifeline: Reducing the cost of mobile devices to reach universal internet access. Web Foundation" that the average price of a smartphone in Africa is $62. That is 62.8% of the monthly gross national income per capita. Sierra Leone ($265), Burundi ($52), Niger ($60) are some of the countries where the smartphone is considered expensive by the A4AI. Botswana ($26) is one of the most affordable countries.

Since last year, the coronavirus pandemic has increased the need for high-speed connectivity and smartphones in Africa. US-based International Data Corporation (IDC) found in its Quarterly Global Mobile Phone Tracker that overall, shipments in the African mobile phone market declined by 6.0% YoY in Q3 2020. Shipments of feature phones (basic phones that sometimes include multimedia features) fell by 11.2% YoY to 29.4 million units, while shipments of smartphones increased by 1.6% YoY to 22.9 million units.

GSMA and A4AI believe that the high cost of smartphones, which slows down access to mobile broadband Internet for many people, may hinder their participation in the digital economy. The entities suggest that universal access and service funds that focus their efforts on broadband infrastructure deployment review their approach to include accessibility of mobile devices, including smartphones.

Muriel Edjo

On the same topic
China launches AI contest targeting African innovators and students Initiative aims to identify high-impact solutions across key...
Campus to train youth in coding, data, and artificial intelligence Backed by Axian Group, France, and the European Union Project supports Togo’s...
Government launches plans to improve data use and public services Strategy aims to support responsible use of artificial intelligence Move...
Onatel signs $5.9 million deal to expand rural 4G Project targets 92 localities, 370,000 people in 18 months Initiative aims to narrow...
Most Read
01

Mediterrania Capital bought Australian Amcor's Moroccan packaging unit Enko Capital took ov...

Two Other African-focused Private Equity Firms to Snap Up assets shed by Global Majors
02

Standard Chartered arranges $2.33 billion for Tanzania railway project Funding support...

Tanzania Secures $2.33 Billion in Syndicated Financing for Standard Gauge Railway
03

Central bank to release $1 billion in cash to curb black market demand Move aims to ease inf...

Libya Opens Dollar Sales to Ease Pressure on Dinar and Prices
04

Jetour to produce T1, T2 SUVs in South Africa from 2027 Chery to acquire Rosslyn plant, cre...

Chinese Automaker Jetour to assemble SUVs in South Africa from 2027
05

Ecobank named alongside AfDB, ECOWAS, EBID and BOAD in the April 27, 2026 corridor financing mis...

Ecobank's Quiet Inclusion in the AfDB Mission Reshapes the Abidjan-Lagos Corridor Story
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.