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Mobile industry to spark “explosive" economic growth in sub-Saharan Africa – report

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New research has claimed that the mobile industry could create almost 15 million new jobs in sub-Saharan Africa between 2015 and 2020.

The new GSMA-commissioned research by Deloitte claims that the 14.9 million new jobs in six key sub-Saharan markets (Ghana, Kenya, Nigeria, Senegal, South Africa and Tanzania) could help generate an additional US$33.6 billion in regional GDP during the period – but is dependent on “the necessary spectrum allocations and transparent regulation”.

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Mobile connections in the region have been growing at 44 percent (CAGR) since 2000 and now stand at 475 million, compared to just 12.3 million fixed-line connections. This is said to be the highest proportion of mobile versus fixed-line in the world.

The research claims that the mobile industry directly contributes US$32 billion to the sub-Saharan African economy, accounting for 4.4 percent of GDP. Approximately 3.5 million full-time jobs are attributed to the sector.

However, the report warns that the region faces a looming “capacity and coverage crunch” in terms of available mobile spectrum. It also flagged the “high levels of government taxation and new regulation [that] threaten to limit the growth of mobile services across the region.”

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“Tackling stifling regulation, addressing high taxation and implementing a harmonised approach to future spectrum allocation will further boost the success story of mobile across the continent,” said the GSMA’s Tom Phillips.

(mobilebusinessbriefing)