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Business Editor
ZIMBABWE is among countries that are set to benefit from the evolving telecommunications infrastructure in Sub-Saharan Africa, it has been learnt. According to the Sub-Saharan Africa Ericsson Mobility Report Index, the rapidly changing social and technological dynamic in Information and Communications Technology (ICT), complemented by new devices, is driving the increase in subscription numbers in the region.
Consumers, businesses, government and society at large are rapidly accessing ICT mobile innovations resulting in an increase in accompanying technologies and creating potential for further growth.
By the end of 2014, it is forecast that there will be over 635 million subscriptions in Sub-Saharan Africa. This is predicted to rise to around 930 million by the end of 2019.
Other countries set to benefit include South Africa, Angola, Tanzania, DRC, Ghana and Mali.
The mobile phone is a leading communication device in the Sub-Saharan consumer market. Mobile users in the region have shown a preference for using their device for a variety of activities that are normally performed on laptops or desktops.
“The relatively low cost of mobile phones and the continuous drop in prices has led to them becoming attainable for consumers from most segments or income brackets, especially those from the rising middle-class,” reads part of the report.
Zimbabwe’s mobile penetration is around 104,4 percent translating to approximately 13,6 million subscribers.
Ericsson said the broader access to mobile phones by consumers from different backgrounds had created the potential for subscriptions to increase in the region while the digital concept has entered the lower-to-middle class consumer segment.
It said mobile banking is one such example where digital services, via the mobile phone, have moved beyond urban centres to peripheral surroundings and beyond, with significant uptake and usage in rural areas.
“The large number of people in Sub-Saharan Africa who do not have bank accounts suggests that mobile phones may be the only way that many people will be able to access financial services. There is strong interest in mobile financial services in Sub-Saharan Africa. 58 percent of mobile users in the region show an interest in using mobile banking and mobile wallets in future. This innovation is boosting financial inclusion at all levels of society across the region.
Figures released by Econet Wireless recently showed that at least $350 million was being processed through its mobile platform Eco-cash on a monthly basis.
Other service providers Telecel through its Telecash and Net One’s onewallet have increased accessibility of financial services through the mobile phone.
“The rapid increase in low-cost (less than $100) consumer-centric technology such as smartphones and tablets has played a pivotal role in driving growth within Sub-Saharan Africa’s mobile market. This growth will be further driven by the increasing number of devices that cost less than $50 that are expected to enter the market over the coming years,” the company said.
“The rise in ownership of internet-enabled mobile phones has made access to the internet easier and more affordable for mobile users in this region. The growth in mobile internet usage has helped overall regional internet penetration levels to exceed fixed-line internet.”
The communication technology and service provider said new business opportunities that have been created by the internet have been boosted by consumers’ increased access via mobile phones leading to the development of new business models.
derick.khumalo