Independent Online

Saturday, June 25, 2022

Like us on FacebookFollow us on TwitterView weather by locationView market indicators

African Internet economy to hit a staggering $180 billion in 2025

A report by World Mobile, a blockchain-based mobile network operator, shows that the value of Africa ’s internet economy is projected to more than double to over $180 billion by 2025 from the current estimated $115 billion: Photographer: David Paul Morris/Bloomberg.

A report by World Mobile, a blockchain-based mobile network operator, shows that the value of Africa ’s internet economy is projected to more than double to over $180 billion by 2025 from the current estimated $115 billion: Photographer: David Paul Morris/Bloomberg.

Published Mar 7, 2022

Share

A report by World Mobile, a blockchain-based mobile network operator, shows that the value of Africa’s internet economy is projected to more than double to over $180 billion (R2.76 trillion) by 2025 from the current estimated$115 billion. Professional investors attribute the expected potential growth to be anchored by the eased access of mobile phones in the continent.

The report reveals that investors are forecasting strong growth in the value of Africa’s internet economy, with mobile phones propelling the expansion. By 2020, 495 million people subscribed to mobile services in Sub-Saharan Africa, representing 46% of the region’s population.

Story continues below Advertisement

Increased use of mobile phones will be crucially central to the growth of the internet industry enhanced by improved production and affordability of these devices from countries like the United States, the United Kingdom, Hong Kong, India, China, Germany, among others.

Another study by PureProfile, an advertising agency company, surveyed investors responsible for around $700 billion assets under management. The results showed that twenty-five per cent of investor managers expect Africa’s internet industry to increase by 51 per cent in the next three years.

Over 71 percent of professional investors expect the affordability of mobile phones in Africa to improve by 2025. Currently, the mobile phone economy accounts for an average of 6.8 per cent of monthly incomes. Ninety-seven per cent of all professional investors believe that the Covid-19 pandemic has accelerated the demand for mobile phones.

World Mobile is compounding its unique hybrid mobile network supported by low altitude platform balloons in Zanzibar, which it plans to roll out throughout the continent. The company is already in discussions with government officials in Tanzania, Kenya, and other territories under-serviced by traditional mobile operators.

World Mobile will be the first to launch balloons in Africa for commercial use officially. They will provide a more cost-effective way to provide digital connection to people and bring over four billion people online before 2030, in line with the United Nations and World Bank’s Sustainable Development Goals.

Micky Watkins, Chief Executive Officer of World Mobile, said that professional investors see the opportunities presented to the African internet community and expect mobile phones to play a central role in driving the economy forward.

Story continues below Advertisement

Online banking and shopping. Africa has a booming digital sector, and governments should encourage the spreading of digital technologies to grow their economies.

“Affordability is key to the increasing adoption of mobile phones, but none of it is achievable without connectivity,” said Watkins. “We want to help create a world where everyone can access affordable connectivity, a world where economic freedom is a truth and a world where people can jump on the opportunities that the internet creates.”

Professional investors surveyed by World Mobile believe healthcare is the sector that will benefit the most from increased connectivity. Nearly 53 percent of the professional investors highlighted the opportunities of e-commerce to the healthcare sector.

Story continues below Advertisement

E-commerce would grow the media sector by 42 percent and the entertainment sector by 40 percent. Education would also improve by 33 percent, while finance would walk away with a 34 percent improvement.

The World Mobile outlook is more sustainable in social, environmental, and governance terms. Environmental impacts of internet connectivity are mitigated using solar-powered nodes, second-life batteries, and energy-efficient technology.

World Mobile creates a positive societal impact by applying its circular economy model dubbed as a “sharing economy” where local citizens share in the ownership and rewards of the company’s network. Governance of World Mobile is maintained by the secure underlying blockchain technology, which guarantees user data privacy and is not commercially applied by other mobile operators.

Story continues below Advertisement

World Mobile will help improve mobile phone connectivity in Sub-Saharan Africa and enable Africans to capitalise on the employment opportunities presented through the internet. This will help curb the unemployment that is rampant in the continent.

In 2020, the unemployment rate in Sub-Saharan Africa was at 6.63 per cent.

The post Africa: Internet economy to hit US$180 billion in 2025 appeared first on The Exchange.

Share