Is Africa’s Internet Economy Set for a Boom in the Near Future?

Image sourced from Newsweek.

Professional investors are forecasting strong growth in the value of Africa’s internet economy with mobile phones central to the expansion, new global research from blockchain-based mobile network operator World Mobile shows.

Mobile Internet Will Lead Into a Boom Period

The study with professional investors responsible for around $700-billion assets under management by independent research company PureProfile found one in four (25%) expect the value of Africa’s internet economy to more than double over the next three years from the current estimated $115-billion. More than half (51%) expect it to be worth more than $200-billion by 2025.

Increased use of mobile phones will be central to the growth which will be further enhanced by improved affordability, the study with investors in the US, Germany, the UK, Hong Kong, India, Japan, Nigeria, and Switzerland found.

Around 71% of investors expect affordability of mobile phones in Africa to improve over the next three years – currently it is estimated they account for around 6.8% of monthly incomes on average – while nearly all professional investors (97%) believe the COVID-19 pandemic has accelerated demand for mobiles.

Sectors that Will Benefit the Most

Professional investors questioned believe healthcare is the sector which will see the most benefit from increased connectivity. Around 53% highlighted the opportunities for healthcare ahead of e-commerce on 42% and media and entertainment on 40%.

Education was chosen by 33% of professional investors questioned alongside finance which was selected by 34%.

World Mobile is launching its unique hybrid mobile network supported by low altitude platform balloons in Zanzibar which it plans to roll-out throughout the continent.

It is already in discussions with government officials in Tanzania and Kenya, as well as other territories underserviced by traditional mobile operators.

Edited by Luis Monzon
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