Mobile operators have made a significant contribution to the Sub-Saharan economy in the last year, an international organisation has found.<\/p>\n
According to the GSM Association (GSMA), the mobile industry contributed $102bn to the region\u2019s economy, while operators driving network expansion delivered $31bn directly.<\/p>\n
The GSMA delivered these findings in its Mobile Economy Report for Sub-Saharan Africa 2015 report released at the Mobile \u2013 360 conference underway in Cape Town.<\/p>\n
\u201cThe mobile industry remains a key driver of economic growth and employment in Sub-Saharan Africa, making a vital contribution given the population growth and high unemployment levels seen in many countries in the region,\u201d said Alex Sinclair, acting director general at the GSMA.<\/p>\n
The contribution of the mobile industry is indicative of 5.7% of the region\u2019s gross domestic product, with forecasts set for a $166bn contribution by 2020, or 8% of expected GDP.<\/p>\n
Internet access is shifting to mobile as the expense of cable broadband makes it unattractive, particularly in lower income areas.<\/p>\n
\u201cDespite revenue and margin pressures, local mobile operators continue to invest heavily to extend network coverage to serve unconnected communities and accelerate the migration to high-speed 3G\/4G mobile broadband networks,\u201d said Sinclair.<\/p>\n
The investment in mobile broadband services is expected to result in 41% or 386 million subscribers in the region by the end of the year, the report found, tying in with earlier GSMA predictions.<\/p>\n
Subscriber growth is expected to reach around 518 million or half of Africa\u2019s population by 2020.<\/p>\n
More people in the region are connecting to networks via smartphones which now have a 20% penetration in the region, about half the global penetration.<\/p>\n
The GSMA report shows that part of the reason for increasing smartphone growth lies in the declining price of devices in the region to below $100.<\/p>\n
International Data Corporation (IDC) data shows that devices in this price bracket had growth of 45.1% in 2015.<\/p>\n
Fin24<\/a><\/p>\n South Africa is the second worst country in the world for gun deaths<\/a><\/strong><\/p>\nMore on South Africa<\/h3>\n