The GSM Association, the global organization representing mobile network operators, has emphasized that the manufacturing sector stands to gain the most from the deployment of 5G technology by telecommunications companies. This assertion is featured in their latest report titled ‘Mobile Economy Sub-Saharan Africa.’
The GSMA’s report indicates that while 5G is poised to bring benefits to various sectors of the Sub-Saharan African economy, the manufacturing sector is expected to reap over 32% of these advantages. This boost will be driven by applications like smart factories, smart cities, and smart grids.
Furthermore, the GSMA reveals that 29% of the benefits will flow into the services sector, with other sectors benefiting in proportion to their capacity to integrate 5G use cases into their operations.
In terms of the broader economic impact of 5G technology on Sub-Saharan Africa, the GSMA forecasts a positive impact of $11 billion by 2030, accounting for more than 6% of the overall economic influence of mobile technology. This impact is expected to increase as 5G technology gains wider adoption and scale.
The report also anticipates that Sub-Saharan Africa will have 226 million 5G connections by 2030, equivalent to an adoption rate of 17%. This growth will primarily be driven by Nigeria and South Africa, which are projected to account for nearly half of these connections. While 5G growth in the region is predicted to be gradual, a significant part of the customer base will continue to transition to 4G. The rising demand for internet access is spurring the growth of the 5G fixed wireless access (FWA) market, with operators such as Orange Botswana and Telkom South Africa launching commercial 5G FWA services. FWA is expected to serve as a primary broadband connection, enhancing regional coverage and providing operators with opportunities to increase their subscriber base and develop new use cases.
The report by GSMA also notes a consistent growth in unique mobile subscribers in Sub-Saharan Africa, with this trend expected to continue over the next seven years, ultimately reaching nearly 700 million by the end of 2030. Nigeria and Ethiopia are projected to account for nearly a third of total subscribers in Africa by 2030. However, mobile penetration in the region is projected to reach 50% by 2030, which is lower than the global average of 73% for the same year.
