How can we spread technology throughout the continent? by François Barrault (New York Forum Africa 2012)

Copyright © IDATE 2012

TECHNOLOGYHow can we spread technology throughout the continent?

François BARRAULT

Chairman, IDATE


Telecoms in Africa: how does it fit into the global market?

• What percentage of the sector’s global revenue keeping in mind that the entire African economy represents 3% of global GDP?

> Close to 4% Africa’s telecom markets generated €43 billion in 2011

• What fixed line teledensity ? (Note: 34 lines per 100 inhabitants on average in Europe)

• What broadband density (Note: 23 connections per 100 inhabitants on average in Europe)?

• What mobile density?

> 3.6 lines per 100 inhabitants Africa is home to 3.2% of the world’s active fixed lines

> 0.8 connections per 100 inhabitants Africa has 1.3% of the world’s broadband connections

> Around 60% (60 SIM cards per 100 inhabitants) and over 100% in 13 countries

Africa is home to 10% of the global cellular base


Telecoms in Africa: how fast is the market growing?

• Revenue increased by nearly 5 times over the past 10 years…

• vs. 58% growth for the global market!

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Africa

World

Annual growth of telecom service markets

Source: IDATE


Telecoms in Africa: market breakdown

• Mobile services account for 82% of Africa’s telecom market revenue…

• … vs. 52%-53% in Europe and North America

Breakdown of telecom service revenues in Africa

fixed telephony

mobile services

corporate data & internet access

USA

EU-27

Total revenue in 2011: €43 billion

AFRICA

Source: IDATE


Telecoms in Africa: how many telcos?

• More than 170 mobile network operators, or an average 3.5 per

country, serving a population one billion people and operating more than 600 million SIM cards.

To compare:− 4 operators control close to 90% of the market in the US− 15 mobile operators in India for 1.2 billion people− 3 mobile operators in China for 1.3 billion people

• 5 or more operators in 10 countries in Africa: − 6 in Uganda and Burundi− 7 in Somalia − and… 9 in Nigeria


Looking beyond the mobile explosion…

• To what extent are mobiles now acting as levers for innovation in certain sectors such as:

˗ Banking?(15 million people use the M-Pesa mobile payment system in Kenya)

˗ Healthcare?

˗ Education?

˗ Agriculture?

• Is there another technology success story in Africa? (today or potential)


What is standing in the way of technical innovation?

• Of creating a system of trust (competition policies, network security, respecting copyright, freedom of the internet and the media)?

• Overcoming the lack of qualified workers/managers and schools of engineering?

• Hampering investment in high-speed infrastructure (3G/4G, FTTx)?

• and the lack of venture capital?

• …


Can Europe offer any lessons?

• In learning to work together beyond our borders? (fostering debates like this NY Forum…)

- on a continental…

- or possibly regional/sub-continental scale?

• In bringing Africa more fully into standardisation and regulatory bodies?

• In a new view of North-South cooperation?


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Now, with the support of close to 40 member companies – which include many of the digital economy’s most influential players – the newly rebranded DigiWorld Institute has entered into a new stage of its development, structured around three main areas of activity:

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Thank you!

Technology

How can we spread technology throughout the continent? by François Barrault (New York Forum Africa 2012)