- Nigeria’s telecommunication sector has attracted a total investment of $75.6 billion since 2021.
- Kenya’s Safaricom is also among the success stories highlighting Africa’s true potential in the telcom industry.
- Today, there are over 270 million active mobile users in Africa.
Experts in Africa’s mobile industry are ready to crown a new king of the continent after investments in Nigeria’s telecommunication industry hit $75.6 billion since 2021. Aside from dominating Africa’s blockchain ecosystem, Nigeria is leading Africa’s steady digital transformation given its high adoption rate.
Africa is undergoing digital transformation, often times trailblazing the world. Todays era is bringing in innovations in several industries, but none have profited like Africa’s telecommunication industry. During the early stages of Africa’s “Digital” era, many telecoms embraced new technology that would connect and support new talent in Africa.
Africa’s growing telecom industry
According to Mordor Intelligence, Africa’s telecommunication industry will register 11.2 percent growth between 2021 and 2026. The industry brings together several industries ranging from online gaming to mobile connection in liaison with various digital industries.
Recently, international organizations such as World Mobile have set up shop in Zanzibar to establish a new telecommunication system. This new project utilizes a primary participant in Africa’s digital transformation – blockchain technology.
According to World Mobile, its latest project in Africa will establish a single telecommunication system serving an entire nation. The firm has installed over 350 telecommunication infrastructures within businesses, homes and government offices.
The significant rise of Africa’s mobile and telecommunication industry has caught the eye of several investors. Kenya’s Safaricom is among the few success stories highlighting Africa’s true potential. Safaricom owns M-PESA, the digital currency’s pioneer, currently in use by over 50 million users in Africa.
In June the International Finance Corporation (IFC), a member of the World Bank Group paid $157.4 million for a minority stake in Safaricom Ethiopia.
In addition, Africell, another titan in Africa’s telecommunication industry, has over 12 million mobile subscribers. Their reach extends from the Gambia, the Democratic Republic of Congo to Uganda and Sierra Leone. Africell has also received massive investments from several international groups such as Gemcorp.
Africa’s digital transformation is growing, and today the competition to dominate the billion-dollar sector is split between several African countries. However, Nigeria is leading the pack, with Kenya and South Africa following.
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Nigeria setting pace in Africa’s telcos
For the past decade, Africa has appeared on the front pages of business articles and newsletters as the most profitable investment region in technology. At the beginning of the year, Disrupt Africa revealed that Africa’s digital transformation acquired $3.33 million in funding and startup investments in 2022.
According to the Nigerian Communication Commission, Nigeria’s telecommunication sector attained a total investment of $75.6 billion. This impressive figure is brought by the collaboration of foreign direct investment and local contributions.
The National Bureau of Statistics says that in the first quarter of 2023, Nigeria’s telecommunication industry gained at least $3.2 billion in financial value, contributing to the nation’s GDP. This figure represented a 4.3% increase from the last quarter of 2022.
When comparing its progress yearly, its total revenue earned went from 12.94% in 2022 to 14.13% in 2023. In 2019, the industry climbed from $68 billion in 2018 to $70.6 billion. This later increased to $72 billion in 2020.
The sector has broken record after record, cementing its post as one of Nigeria’s leading economic activities. Granted, Nigeria has significantly supported major technologies within the 4th industrial revolution. It is the first country to develop its own CBDC months after realizing how lucrative its crypto trading volume is.
The NCC CEO has hinted at further regulatory frameworks that will smoothen the growth of the industry. Danbatta stated that the existing regulatory environment is among the main reasons why Nigeria’s Telecommunication Industry went from $500 million in investments in 2001 to $75.6 billion by 2021.
A growth of a multi-billion dollar franchise
MTN Group, Safaricom, Vodacom Group, Airtel Africa and Smile Nigeria are among the top contributors to Africa’s telecommunication industry. Their contribution and collaboration with Africa’s mobile industry have paved the way for innovation and fruition. The continent’s telecom sector has opened up new platforms for businesses, startups and developers.
Today, there are over 270 million active mobile users in Africa. This established a line of communication between local, national and international entities, providing a perfect breeding ground for innovation and marketing. During the lockdown period, Africa’s telecommunication and mobile industry exponentially grew. This led to the development of online marketing or Africa’s Ecommerce Industry.
Many do not comprehend that a telecom company provides the backbone of online businesses. Their effects trickled down into multiple industries, causing all manner of partnerships, innovations and developments in multiple sectors. As a result, the industry has left a permanent mark on the entire globe. In addition, Africa’s digital transformation has served as the catalyst that propelled these industries into new grounds.
Although, what’s more, intriguing is that only a small fraction of African countries have made significant strides in the fourth industrial revolution. If Africa completes its digital transformation it will change the entire dynamic of the continent, our economic standpoint and our say in any technological advances. During this inevitable turning point, Nigeria might stand at the pinnacle of Africa’s new tech hub.
