The ICT sector is a cornerstone of modern economies, serving as a catalyst for innovation, connectivity, and productivity. Namibia’s 17% revenue growth demonstrates its ability to adapt to global digital trends despite stagnant profits.

Namibia’s Information and Communication Technology (ICT) sector has demonstrated resilience and growth, with a newly published 2023 ICT Sector Market Report by the Communications Regulatory Authority of Namibia (CRAN) revealing a 17% revenue increase between 2018 and 2023. Despite stagnant overall profits, the sector has shown significant advancements in digital infrastructure and changing consumer behavior.

According to CRAN Chief Executive Emilia Nghikembua, state-owned entities dominate the sector, holding licenses for 82% of telecommunication assets and contributing 80% of total revenue. However, private sector participation has steadily increased. “The revenue share of the private sector has grown from 16% in 2018 to 20% in 2023. Encouraging is that, 37% of additions to property, plant & equipment (PPE) were undertaken by the private sector in 2023 compared to the 63% of the public sector,” she said.

The adoption of Fibre-to-Home technology has surged, now accounting for 27% of fixed broadband subscribers, more than doubling since 2018. Mobile broadband has also expanded, with SIM cards dedicated to mobile internet rising from 61% in 2018 to 67% in 2023, despite an overall 6% decline in active SIM cards.

Data usage has fueled the sector’s revenue growth, with mobile data revenue increasing by 53% over the past five years. Data services now contribute 70% of total mobile service revenue, up from 46% in 2018. Mobile data dominates the data market, representing 76% of total data revenue.

Conversely, revenue from traditional mobile voice and SMS services has continued to decline. SMS usage and landline subscriptions are also waning, while outgoing mobile call minutes have risen by 60%.

The report also highlights shifting media consumption habits. The 2023 Census reveals that 45% of Namibians still rely on radio as their primary source of information, compared to 36% who prefer television. In rural areas, radio dominates with 41%, while television is preferred by 55% of urban residents.

Namibia’s state broadcaster, the Namibian Broadcasting Corporation (NBC), has experienced a 23% revenue decline over the past four years. This downturn affects all major streams, including license fees, advertising, and rental income. Advertising remains NBC’s largest revenue contributor at nearly 50%, but competition from MultiChoice and other platforms has increased.

Namibia has significantly improved its affordability ranking in Africa for 1GB of data usage, climbing from 46th place in early 2022 to 8th in 2023. This achievement follows a CRAN-led public consultation on broadband prices, resulting in lower retail costs. It aligns with CRAN’s vision of “Access, quality, and affordability for all.”

4G coverage now extends to 88.4% of the population, and 69% of mobile SIM cards are used for internet access. However, Namibia’s internet speed ranking has dropped, emphasizing the need for infrastructure upgrades to maintain service quality.

The report underscores the need for continuous investment in digital infrastructure and affordable access to ensure the sector's sustained growth while meeting the demands of an increasingly digital population.

Hikmatu Bilali

Editing by Sèna de Sodji