It is much better analyzed through the lens of country by country basis.
It is therefore very difficult if not impossible to classify Africa’s character collectively. However it is important to note that Africa consists of 55 independently governed territories spread across 20% of the world’s total land area. Notably the telecommunications revolution has also sparked transformation in other sectors such as financial services, healthcare, energy and many more.Īfrica’s mobile telecoms market is one of growth opportunities intertwined among unique regional challenges. At the dawn of the 21st century, Africa had roughly 17 million mobile subscriptions but today, more than 380 million Sub-Saharan African inhabitants own a mobile phone. It has been an exciting time as the technology has begun to extend its reach to all peoples on the continent. Throughout the years, we have witnessed the transformation of telecommunications from an exclusively state owned service to the partial and complete privatization of the sector in different territories. Conversely, Africa has given birth to some enviable Telco brands such as MTN Group, Econet Wireless/ Liquid Telcom (or Econet Group), Globacom and several others.ĭetecon has extensive experience on the continent having established a presence in the early 1990s. In the ICT sector Telcos like Vodacom, Airtel and Etisalat are such examples of multinationals that have realized profitable returns in Africa. Traditionally, multinational organizations operated within the Southern Africa territory, but there has been an increased amount of multinationals establishing their footprints in other regions in Africa. Although regional, political, geographical and economic challenges present high risks of doing business in Africa, the rewards equally compensate. This is a clear indication that Africa is open for business, offering attractive returns on investment for globally investors. While forecasts show strong economic development, the relevant question for the African continent is “ is the growth is fast enough to accommodate the current population explosion?”Ī development worth noting is that for the first time ever, investment funds exceed aid funds in Africa. Although GDP growth in 2014 was 4.6% and is forecast to decline by year end 2015 to 3.7% due to slow down in commodity prices, the World Bank expects that growth will return to above 4% in subsequent years. The latter will require a combination of foreign investment as well as home grown solutions, the coordination of which has thus far proved complex.Ĭurrently, the continent is home to a growing middle class and is one of the fastest growing economies in the world. The brighter picture paints an image where continued population growth is coupled with economic growth and opportunity which capitalises on the continent’s availability of human resources.The darker picture presents continued population growth without commensurate economic opportunities resulting in a large young unemployed population which will ultimately see the continent descend into instability.With the increasing population growth rate and economic disparities, Africa may arrive at two possible depictions of the future. Youth unemployment is rife and distribution of wealth remains skewed towards the select few.
The African continent is facing great challenges as the young population become of adult age. The paradox is that going forward this will either become the continent’s Achilles’ heel or its Herculean strength. A recent study by UNICEF points out that at current population growth rates, by the turn of the next century, half of the world’s children under the age of 18 will be of African descent. The continent’s population quickly approaches a billion with 60% of its inhabitants under the age of 30. The African continent finds itself at a crossroads in its narrative. Telecommunications in Sub-Saharan Africa – The Situation Right Now.