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Telecoms & Networks News South Africa

GSMA report spotlights Africa’s ‘billion strong digital divide’

The GSMA's recent report, "Driving Digital Transformation of the Economy in South Africa," highlights the vast potential of mobile internet across Africa while underscoring persistent challenges to its widespread adoption. Angela Wamola, head of GSMA for sub-Saharan Africa, called for innovative solutions to bridge this gap, especially by making digital access affordable and inclusive.
Angela Wamola, head of GSMA for sub-Saharan Africa presents the latest GSMA report.
Angela Wamola, head of GSMA for sub-Saharan Africa presents the latest GSMA report.

Africa is home to 1.4bn people, but nearly a billion remain unconnected to mobile internet, even where infrastructure exists.

Wamola highlighted that about 710m Africans live within reach of 3G or 4G signals but have never used mobile internet, often due to high device costs.

“The biggest barriers in Africa are twofold: the device and the data,” Wamola stressed, suggesting that a reduction in taxes could lower device costs and boost accessibility.

Economic potential in connectivity

With Africa’s average data consumption lagging globally, the report illustrates the untapped economic benefits of bridging the digital divide.

Wamola shared that African users consume an average of 2GB per month, far below the 20GB global average.

This disparity indicates that Africans are only experiencing a fraction of potential digital engagement, hindering economic productivity – when instead the bulk of that is being used for entertainment.

“We should be educating internet users on the continent on how best to maximise the productive potential of that data,” she said.

Device cost

High consumer taxes, particularly on mobile devices and data, severely impact affordability, the report finds.

According to Wamola, custom duties and excise taxes together constitute nearly 64% of the cost of a mobile handset in some African countries, while data excise duties further discourage digital adoption.

She believes that reforming these tax structures could provide affordable access to millions and drive digital inclusion.

Another major concern is the cost of energy, which directly affects mobile internet costs.

In rural areas, energy accounts for up to 67% of data costs due to dependence on expensive fossil fuels.

Although renewable energy could reduce these costs, only 20% of Africa’s mobile infrastructure currently runs on renewables.

Smaller countries like Uganda are leading with renewables, while major markets like South Africa still rely on fossil fuels.

Gender disparity also impacts mobile internet usage in Africa, with rural and female populations being less likely to go online due to high costs.

“Women are 32% less likely than men to go online, and this gap is even wider in rural areas,” Wamola observed, adding that addressing these socio-economic barriers is vital to achieving equitable digital growth.

Policy recommendations

The GSMA report delivers key policy recommendations for enhancing digital access and leveraging Africa’s connectivity potential:

Reduce taxes on devices and data: Lowering import duties and excise taxes on digital devices and data can improve affordability.

Adopt renewable energy: Expanding renewable energy use in telecom infrastructure could significantly reduce data costs, particularly in rural areas.

Expand digital skills training: Training initiatives, especially for women and rural populations, are crucial for bridging the digital skills gap.

Focus on relevant content: To drive digital engagement, the GSMA advocates for content and services that are relevant to rural users, beyond just entertainment or gaming.

Through these steps, the GSMA’s vision aims to create a digitally inclusive Africa that fully leverages the economic and social potential of its 1.4bn citizens.

As Wamola noted: “The journey to affordable, accessible digital access will empower Africa’s population and fuel the continent’s digital transformation."

About Lindsey Schutters

Lindsey is the editor for ICT, Construction&Engineering and Energy&Mining at Bizcommunity
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