A recent reportGSMA, titled “The Mobile Economy Sub-Saharan Africa 2023,” highlights the potential impact of 5G technology on the Sub-Saharan African economy. The report reveals that 5G is expected to contribute $11 billion to the region’s economy2030.

Currently, there are 297 mobile operators globally that have launched 5G services as of September 2023. In Sub-Saharan Africa, 27 operators across 16 markets have already launched commercial 5G services, with several others planning to follow suit.

While the adoption of 4G technology has seen significant growth in recent years, driventhe demand for faster connectivity among younger consumers, 5G technology is also gaining momentum. Its deployment is primarily focused on urban areas and industrial locations where there is a greater need for advanced connectivity.

According to the report, 5G adoption in Sub-Saharan Africa is expected to accelerate in the second half of this decade, reaching an adoption rate of 17% and 226 million connections2030. Nigeria and South Africa are projected to account for nearly half of these connections. However, the growth of 5G in the region will be gradual, as a significant portion of the customer base continues to migrate from 3G to 4G networks.

With extensive investment in 4G network infrastructure and the increasing deployment of 5G networks, capital expenditure (capex) in the region will rise in the coming years. However, the focus is expected to shift towards generating returns on investment2030. During this period, operators will prioritize extending coverage, network upgrades, and investments to support the growth of 5G.

5G technology is expected to benefit various sectors of the Sub-Saharan African economy, depending on their ability to incorporate 5G use cases into their business models. The manufacturing sector is projected to account for 32% of the benefits, drivenapplications such as smart factories, smart cities, and smart grids, while the services sector is expected to contribute 29%.

However, the approach to 5G in the region must consider the current connectivity landscape and unique market characteristics that may influence the rollout and adoption of the technology. Therefore, stakeholders in the 5G network ecosystem need to find ways to deliver cost-effective and efficient networks while balancing investment and value creation.

Overall, with the expected economic benefits of 5G, governments and enterprises in Sub-Saharan Africa are leveraging the technology to address major challenges, positioning it as a key player in the region’s development.

Sources:
– GSMA, “The Mobile Economy Sub-Saharan Africa 2023” report.

5G Technology Expected to Benefit Sub-Saharan African Economy$11 Billion in 2030 .

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