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
Nice Deer has partnered with Telecom Egypt to manage healthcare services for over 28,000 employees via its digital insurance platform. The announcement...
Ghana plans to introduce a fully online visa application system in early 2026 The reform aims to speed up processing and simplify entry...
Parliament approved a law updating rules for electronic communications The reform aligns regulation with digital growth and technological...
New ADD chief outlines roadmap aligned with Morocco Digital 2030 Public service digitalization and startup support at the core of the...
Most Read
01

Kenya shipped its first mango consignment to the UK on December 20 The move is part of a pilo...

Kenya targets UK market to boost mango exports
02

In Africa, the transformation of food systems has become an urgent issue in the face of rapid popula...

AGRA’s Lilial Githinji “Leadership capacity remains the missing ingredient in Africa’s food systems transformation”
03

Central bank launches project for real-time transfers across banks and mobile wallets System aims...

Guinea readies instant payment system to speed transactions and cut cash use
04

BOAD approves $35.7 million to upgrade Burkina Faso–Mali border road Project targets 130 km,...

Burkina Faso Secures BOAD’s $35.7 Million for Road to Mali
05

Fitch lowered Gabon’s sovereign rating to CCC- amid rising fiscal stress Payment arrears reac...

Fitch downgrades Gabon to CCC- as liquidity strains deepen
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.