GSMA: Sub-Saharan Africa’s Manufacturing Set to Thrive with 5G in 2030

GSM Association (GSMA), the global organization representing mobile network operators, has highlighted the significant potential benefits of 5G technology for the manufacturing sector in Sub-Saharan Africa. According to GSMA’s latest report, titled ‘Mobile Economy Sub-Saharan Africa,’ while 5G is expected to have a positive impact on various sectors in the region, the manufacturing sector is projected to receive over 32% of the benefits.

This anticipated growth in the manufacturing sector is primarily attributed to the deployment of 5G technology, which is expected to enable various applications such as smart factories, smart cities, and smart grids, revolutionizing the way businesses operate and enhancing overall efficiency.

In addition to the manufacturing sector, GSMA’s report suggests that 29% of the benefits will be directed towards the services sector. Other sectors in Sub-Saharan Africa are expected to reap the rewards based on their ability to integrate 5G use cases into their business operations.

The Economic Impact of 5G Technology in Sub-Saharan Africa

Looking ahead, GSMA projects that 5G technology will bring significant economic benefits to Sub-Saharan Africa over the next seven years. By 2030, 5G is expected to contribute $11 billion to the region’s economy, accounting for over 6% of the overall economic impact of the mobile industry. This impact will become more pronounced over the years as 5G technology matures, achieves scale, and gains widespread adoption across the region.

Nigeria and South Africa: Driving 5G Growth in Sub-Saharan Africa

GSMA’s report also identifies Nigeria and South Africa as the primary drivers of 5G growth in Sub-Saharan Africa. These two countries are expected to account for nearly half of the region’s 5G connections by 2030. While 5G adoption in the region is projected to be gradual, it will be steadily driven by a growing customer base migrating to 4G networks. The increasing demand for internet access is fueling the growth of the 5G fixed wireless access (FWA) market in the region, with operators like Orange Botswana and Telkom South Africa already offering commercial 5G FWA services.

FWA technology is set to play a pivotal role in expanding broadband access and improving coverage in the region. It offers operators the opportunity to expand their subscriber base and explore new use cases that will further contribute to the growth of 5G technology in Sub-Saharan Africa.

Sub-Saharan Africa’s Mobile Subscriber Growth

GSMA’s report highlights the steady growth of unique mobile subscribers in Sub-Saharan Africa, which is expected to continue over the next seven years. By the end of 2030, the region is projected to have nearly 700 million mobile subscribers. Nigeria and Ethiopia are forecasted to account for a significant portion of total subscribers in Africa by 2030, contributing to the region’s mobile growth.

Mobile penetration in Sub-Saharan Africa is also expected to reach 50% by 2030. While this represents substantial growth, it remains below the global average of 73% by the same year.

In summary, GSMA’s report underscores the immense potential of 5G technology in Sub-Saharan Africa, particularly in the manufacturing and services sectors. The projected economic impact and growth in mobile subscribers demonstrate the region’s increasing reliance on mobile technology and its potential to drive economic development and innovation in the coming years.