Sub-Saharan Africa Mobile Data Traffic To Grow 12 times By 2025
… LTE Subscriptions To Reach 270 million
Mobile data traffic in Sub-Saharan Africa is estimated to grow by 12 times the current figures, with total traffic increasing from 0.33 Exabytes (EB) per month to 4EB by 2025.
Meanwhile, average traffic per smartphone is expected to reach 7.1GB over the forecast period. These forecasts are included in the June 2020 edition of the Ericsson (NASDAQ: ERIC) Mobility Report, along with projections for data traffic growth, and regional subscriptions.
In Sub-Saharan Africa, LTE accounted for around 11 per cent of subscriptions in 2019. Over the forecast period, mobile broadband subscriptions are predicted to increase, reaching 72 per cent of mobile subscriptions.
LTE share will reach around 30 per cent by the end of the forecast period, and LTE subscriptions are set to triple, increasing from 90 million in 2019 to 270 million in 2025.
Fadi Pharaon, President of Ericsson Middle East and Africa, says: “Technology brings an unprecedented opportunity to address the challenges of sustainable economic development and improve the livelihood of people in Africa.
The latest edition of Ericsson’s Mobility Report highlights Africa as one of the fastest growing mobile markets and reiterates the need for a more efficient technology, higher data rates and availability of ample spectrum.
The Report highlights as well the importance of mobile and fixed networks as key components of critical national infrastructure to sustain and evolve emerging economies during remote work times.”
Driving factors behind the growth of mobile broadband subscriptions include a young and growing population with increasing digital skills, and more affordable smartphones. Over the forecast period, discernible volumes of 5G subscriptions are expected from 2022, reaching three per cent by 2025.
Value of Digital Infrastructure
The spread of COVID-19 during the first part of 2020 impacted all parts of society globally, including the telecommunications sector. The Ericsson Mobility Report takes an incisive look at the role of networks and digital infrastructure in keeping societies running in Africa, and families connected during the COVID-19 pandemic.
The COVID-19 pandemic has had a substantial impact on people in many countries and their daily lives, but consumers see resilient networks as a vital help in coping with everyday life.
In a recent study conducted by Ericsson Consumer Lab, 83 per cent of the respondents from 11 countries around the world claim that ICT helped them a lot to cope with the lockdown. The results show an increased adoption and usage of ICT services, such as e-learning and wellness apps, that have helped consumers adapt to new realities, underpinned by connectivity.
FWA takes an expanded role
Around half of all households in the world – over 1 billion – do not have a fixed broadband connection. Given the current speed and capacity of cellular networks with LTE, there are opportunities for African service providers to deliver broadband services to homes and small and medium-sized enterprises economically using Fixed Wireless Access (FWA).
FWA delivered over 4G or 5G is a cost-efficient alternative to providing broadband in areas with limited access to fixed broadband services such as DSL, cable or fiber. Several factors are driving the FWA market in Africa and beyond: demand from consumers and businesses for digital services along with government-sponsored programs and subsidies.
FWA connections are forecast to reach nearly 160 million by end of 2025 – generating about 25 per cent of global mobile network data traffic. At the end of 2019, global FWA data traffic was estimated to have been around 15 per cent of the global total. It is now projected to grow nearly 8 fold to reach 53 exabytes in 2025, representing 25 per cent of the global total mobile network data traffic.
The report also includes forecasts on data traffic growth, regional subscriptions plus insights into cloud-based gaming as well as in-depth articles on private dedicated networks and Verizon’s millimeter wave strategy for targeted metropolitan areas.
M-KOPA raises $250m to scale high-impact consumer fintech across Africa
M-KOPA, a leading fintech platform, today announced it successfully closed over $250m in new debt and equity funding to expand its financial services offering to underbanked consumers across Sub-Saharan Africa. This marks one of the largest combined debt and equity raises in the African tech sector, enabling M-KOPA to continue its rapid growth.
Over $200m in sustainability-linked debt financing was led and arranged by Standard Bank Group, Africa’s largest bank and long-term strategic partner to M-KOPA. Other participating lenders include The International Finance Corporation (IFC), funds managed by Lion’s Head Global Partners, FMO: Dutch Entrepreneurial Development Bank, British International Investment, Mirova SunFunder and Nithio. A further $55m in equity investment was backed by existing strategic investor Sumitomo Corporation, which is contributing $36.5m to the total raise and will engage closely with M-KOPA on new growth markets and products. Blue Haven Initiative, Lightrock, Broadscale Group and Latitude, the sister fund to Local Globe, also participated in the transaction.
M-KOPA’s fintech platform combines the power of digital micropayments with the Internet-of-Things (IoT) to provide customers with access to productive assets. In markets where individuals have limited pre-existing financial identities and conventional collateral, M-KOPA’s flexible credit model allows individuals to pay a small deposit and get instant access to everyday essentials, including smartphones, electric motorcycles and solar power systems, and then graduate to digital financial services such as loans and health insurance. M-KOPA’s solution embeds credit into the product through a smart digital connection, giving customers ownership instantly, which they can pay off through micro-instalments over time. The company has sold over 3 million of these products through a unique direct sales model that includes more than 10,000 agents. M-KOPA’s operations started in East Africa and successfully expanded to Nigeria in 2021 and, more recently, Ghana. From 2020 to 2022, M-KOPA recorded a compound annual growth rate of 85% in new customer acquisition, and was recently recognised as one of Africa’s Fastest-Growing Top 100 companies by the Financial Times for two consecutive years, in 2022 and 2023.
YouTube’s Alex Okosi Highlights The Need For A Comprehensive Digital Trade Strategy For Africa
YouTube’s Managing Director, Emerging Markets, EMEA, Alex Okosi, was among the key speakers at the Africa Debate 2023, which took place recently at the Guildhall in London.
Okosi’s session, titled “Building a Comprehensive Digital Trade Strategy for Africa,” highlighted the challenges facing Africa in terms of digital infrastructure despite advancements in digital trade and e-commerce. He debated the best path forward for a digital trade strategy, with a focus on the 7th protocol of the African Continental Free Trade Area (AfCFTA) on e-commerce.
Joining Okosi on the panel were Michelle Chivunga, a Digital Trade Expert for AfCFTA and Chief Executive Officer & Founder of Global Policy House, who moderated the session, as well as Wayne Hennessy-Barrett, Chief Executive Officer, 4G Capital; Peter Njonjo, Chief Executive Officer, Twiga Foods; Toulay Oueslati, Head of Trade Finance & Commodity Trade Finance, Bank of Africa United Kingdom and Hardy Pemhiwa, Chief Executive Officer & Chairman, Cassava Technologies.
Organized by Invest Africa, a leading business and investment platform with over sixty years of experience on the continent, and in partnership with Africa Finance Corporation, the event was in its 9th year and focused on Africa’s trade profile through a comprehensive programme of talks, discussions, and networking opportunities.
“I believe that digital trade has the potential to transform Africa’s economy and improve trade relations with the rest of the world. However, to achieve this goal, we need to address the challenges of infrastructure development, regulatory frameworks, and digital skills training,” Okosi said.
The panel discussion explored the future of African trade and how the private sector can best support and prepare for a more integrated and competitive African trade environment.
“Collaboration between governments, businesses, and financial institutions is crucial in creating an enabling environment for digital trade. This includes developing regulatory frameworks, financing solutions, and digital infrastructure,” Okosi added.
Okosi is a highly experienced television, content, and tech executive with over 25 years of experience building successful businesses and brands globally. He has a track record of identifying and scaling new business opportunities, generating multi-million-dollar revenue streams, and delivering profitable growth.
Currently serving as Managing Director, Emerging Markets, YouTube EMEA, Okosi has been instrumental in driving the platform’s growth across key verticals, including music, gaming, TV/film, kids & family, news, and sports. In 2022, Okosi was named one of the UK Powerlist’s 100 most influential people of black heritage for the second year in a row.
Opportunik Global Fund Set to Break Barriers Through Its African and Diasporan-Focused Investment Fund
Opportunik, a private wealth fund giving Africans and Diasporans access to global investments, announced today that it will launch its licensed fund on the 2nd of May 2023. Administered by Accuvise Administrators Limited, a registered fund administrator based in Mauritius, Opportunik Global Fund [OGF] will present a diverse mix of asset classes enabling investors to create wealth with minimal currency or political risk.
OGF was created to address African investors’ pain points, including high barriers to global deals, insufficient yield on smaller ticket sizes, ever-changing foreign exchange rates, and high inflation and taxation. Participants can be located anywhere in the world but must invest in the most traded currencies, such as the US Dollar. As one of the first private retail funds aimed at Africans, the multi-asset growth fund will provide the following:
- Low-entry barrier with a minimum investment of $5,000 and optional monthly subscriptions in multiples of $1,000
- Access to diversified asset classes and investment strategies in multiple financial markets
- Projected return of 10-20% paid annually to investors’ bank accounts
- 5-year tenure for the principal with an annual payment of returns
- Ability to track wealth journey and measure returns and financial growth
Commenting on the fund, Kola Oyeneyin, CEO of Opportunik Global Fund, said: “We created Opportunik Global Fund to directly tackle the challenges many African investors face when looking for global investments. As an African-born fund, we recognise that the continent is full of wealth opportunities; however, there is a need to empower rising middle-class Africans with a platform to enable them to access new markets beyond the continent’s borders.
Driven by an in-house team of fund managers located across Africa (South Africa, Nigeria, Kenya, and Zambia), OGF will work alongside Accuvise Administrators. With over $216m in Assets Under Administration, Accuvise has a proven track record of structuring and administrating investment funds.
According to the Henley & Partners’ Africa Wealth Report, a total of $2.4 trillion total investable wealth is held on the continent, with South Africa, Egypt, Nigeria, Kenya and Morocco accounting for more than half of Africa’s high-net-worth individuals.
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