Mobility and Media in Africa

Exploring Africa's Mobile
Potential
Mobile is opening up Africa’s economic
potential, letting your brand tap into Africa’s
markets

• According to the GSMA, Africa is the world's second largest mobile market by
connections after Asia, and the fastest growing mobile market in the world.
• The information provided are to give an indication of the size and growth of the Sub-
Saharan mobile telecoms and digital media market.
• The data provided is a collection of information sourced from numerous sources and
compiled together to create an understanding the market and its size.
• Some data due to time/dates and sources may vary, this should be taken into account
when going through the presentation.
• Some sources may represent conflicting data so that should be taken into account when
reading through and comparing the data provided.
Presentation Disclaimer
Thanks and regards,

Mobile Telecoms
across Sub-Saharan
Africa.
The mobility trends shaping communication
and client engagement across Sub-Saharan Africa
Above 100%
60-100%
40-60%
Less than 40%

The true size of Africa
Mobile telecoms across Sub-Saharan Africa
“According to the GSMA, Africa is now
the world's second largest mobile
market by connections after Asia, and
the fastest growing mobile market in
the world.” – September 2011

High Level Statistics
47 COUNTRIES
IN SSA 44% GROWTH IN THE NUMBER OF MOBILE
CONNECTIONS, %, 2000–2012
475MMOBILE CONNECTIONS
(ACTIVE SIM CARDS) IN SSA
54%MOBILE PENETRATION
RATE IN SSA
700MMOBILE CONNECTIONS (ACTIVE
SIM CARDS) IN SSA IN 2016
17%ETHIOPIA TO RECORD THE
HIGHEST GROWTH RATE BY 2017
103MMTN’S SUBSCRIBER
BASE ACROSS SSA
Above 100%
60-100%
40-60%
Less than 40%
Source: GSMA / Deloitte Mobile Observatory Report, 2012

How is Sub-Saharan Africa divided?
• The 47 countries within the SSA
region show significant economic
and social differences.
• While the average annual income
per capita in the region stands at
US$2,439, it varies from US$216
in the Democratic Republic of
Congo (DRC), the poorest
country, to US$14,660 in
Equatorial Guinea, the richest
country.
• The six most populous countries
(Nigeria, Ethiopia, DRC, South
Africa, Tanzania and Kenya) cover
more than 50% of the population
in the region.
Map Source: United NationsSource: GSMA / Deloitte Mobile Observatory Report, 2012

The size of the mobile telecoms market in Sub-Saharan Africa
Population and connections
Growth in the number of mobile
connections, %, 2000–2012
Since 2000, mobile
connections in SSA has
grown by 44%, compared
to 10% for developed
regions
475 million
connections in
Sub-Saharan
Africa

Growth forecasts for the Sub-Saharan region
Mobile Connections, Population and Mobile penetration in SSA (2000–2016)
Supported by income growth, it is expected that penetration will
continue to grow steadily over the next few years, reaching 75% of the
population and 700 million connections in 2016.

Mobile penetration rates across the region
Penetration by country (2012
Above 100%
60-100%
40-60%
Less than 40%
• Mobile penetration varies widely
across the sub-regions.
• Southern Africa has the highest
mobile penetration, at
119%, mainly as South Africa
shows a 123% penetration and
over 50 million connections.
• Penetration is lowest in Eastern
and Middle Africa at 39% and
40% respectively.
• However, mobile connections
have been growing rapidly in
these sub regions, increasing by
366% and 260% respectively in
the last five years.

GDP per capita and population in selected countries
Penetration, GDP per capita and population in selected SSA countries (2012)
Senegal
Niger
Angola
Cote d'Ivoire
Ghana
Kenya
Tanzania
South Africa
Nigeria
0
2,000
4,000
6,000
8,000
10,000
20% 40% 60% 80% 100% 120%
GDPpercapita(US$)
Penetrationrate (%)

Penetration and connections (sim cards) across key markets
Penetration, five key markets and Senegal (2000–2012)
0%
20%
40%
60%
80%
100%
120%
140%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Kenya Ghana Nigeria
Tanzania South Africa Senegal
98.3
62.4
29.223.821.4
19.3
15.815.014.512.711.411.310.3 9.7 8.6
91.4
454.9
0
50
100
150
200
250
300
350
400
450
500
Connections(millions)
Mobile Connections, top 15 countries (2012)
The five key markets currently
represent 47% of total
connections in the region, and
penetration has increased by
81% per year on average
between 2000 and 2012, with
similar trends seen in Senegal.
Mobile Connections:
• Nigeria: 98.3 million
• South Africa: 62.4 million
• Kenya: 29.2 million
• Tanzania: 23.8 Million
• Ghana: 21.4 Million

Growth rates from 2012 – 2017 across key markets
Source: Informa Telecoms and Media / World Cellular Information Service (Quarter 2, 2012)
“Ethiopia to record highest growth rate by 2017”

Mobile operator groups across Sub-Saharan Africa
Headquarters: South Africa
Connections: 103,319,174
Territories: 15
Headquarters: UK
Territories: 7
Headquarters: India
Territories: 16
Headquarters: France
Territories: 17

Mobile operator groups across Sub-Saharan Africa
Headquarters: Nigeria
Territories: 3
Headquarters: UAE
Territories: 8
Headquarters: Luxembourg
Territories: 7

Mobile internet and Mobile
broadband

Growth of mobile broadband services across Africa
Mobile Internet and Mobile Broadband
60 MILLION
MOBILE BROADBAND CONNECTIONS
5%PENETRATION
80%ANNUAL GROWTH
Source: Wireless Intelligence (Quarter 1, 2013)

Mobile Internet Traffic as a percentage of overall web traffic
Source: Statscounter (Sept to Dec 2012)
Desktop vs. Mobile Internet
Africa: 14.33% = Mobile Internet Traffic
Africa: 85.67% = Desktop (Web) Traffic

Top mobile broadband markets across Africa
Source: Informa Telecoms and Media / World Cellular Information Service (Quarter 2, 2012)

Fixed verses. Mobile Broadband Subscribers in South Africa
Source: Internet Access in SA 2012, World Wide Worx
South Africa ADSL vs. Mobile Broadband
There are approximately 7 mobile broadband
connections (3G modems) to every 1 ADSL connection
in South Africa. The ratio is even higher across Sub-
Saharan Africa

Fixed vs. Mobile Broadband Subscribers in Sub-Saharan Africa
Source: Wireless Intelligence, Vodafone Public Policy Papers 2011
2.9 3.2 3.5 3.9 N/A
34.5
54.1
81.2
117.5
160.2
0
20
40
60
80
100
120
140
160
2012F 2013F 2014F 2015F 2016F
Total Fixed Broadband Total Mobile Broadband
Fixed and mobile broadband subscribers in SSA, million connections (2012–2016)
Given the low penetration of fixed lines, mobile
internet has the potential of driving connectivity
in the region at lower costs.
Across the region, its connectivity via mobile
devices (phones and dongles) that’s driving
digitally connected subscribers across the
continent)

SOURCE: (MARCH 2012)
Based on the Top 10 site listings from Opera Mini, a word cloud of the
popular sites users are accessing on Opera Mini across Africa
Note: The word cloud is not based on unique views, rather appearance of the site in each countries top 10 listing
Opera Mini – State of Mobile Web in Africa

Digital Media
Mobile Web Banners

SOURCE: (Q2 – 2012)
Mobile Web Banner Advertising
Inmobi, Quarter 2-2012 (Africa Overview)
Digital Media: Mobile Web Banners

Mobile Web Banner Advertising
Inmobi, Quarter 2-2012 (Africa Overview)
Digital Media: Mobile Web Banners
SOURCE: (Q2 – 2012)

SOURCE:
The availability of low-cost smartphones has increased adoption in the continent.
Informa Telecoms & Media forecasts a penetration of 12% by end-2017.
Smartphone penetration in Africa
Mobile Device Observations

SOURCE:
Africa, smartphone-connection penetration by country, 2011-2017

Mobile devices used on various platforms in South Africa
High penetration of mobile internet enabled feature phones

SOURCE: (MARCH 2012)Note: The word cloud is not based on unique views, rather appearance of the handset in each countries top 10 listing
Based on the Top 10 handset listings from Opera Mini, a word cloud
of the popular handsets users are using to access Opera Mini across
Africa
Opera Mini – State of Mobile Web in Africa

Smartphone device sales to end users in South Africa during
2012. BlackBerry’s continued market share (54%) and the
growth of the Android platform (254%)

SOURCE: OCT 2012
Mxit is one of the success stories of the South African mobile explosion. The platform allows
for targeted advertising opportunities through splash screens and other inventory assets on
the platform.
Social Media across Africa

Instant messaging platforms: 2GO Messaging Platform

Facebook across Africa

Twitter usage across Africa: Through analysis of 11.5 million geo-located Tweets and a
poll of Africa’s top tweeters, the study surveyed Twitter traffic and trends across the
continent.

Presentation Source Credits
List of sources
• 2go
• Afrographique
• Deloitte Digital
• Gartner
• GSMA Mobile Observatory Report 2012
• Informa Telecoms and Media
• Inmobi
• Mxit
• Opera Mini
• Portland
• Social Bakers
• Statscounter
• United Nations
• Vodacom South Africa
• Wireless Intelligence
• World Cellular Information Service
• World Wide Worx

For further information, please contact:
Andre Hugo
Director, Deloitte Digital
Email: anhugo@deloitte.co.za
Mobile: +27 (82) 354 3965
Twitter: @maxrsa
Michael Cowen
Client Lead Director (Digital), Mindshare
Email: Michael.Cowen@mindshareworld.com
Mobile: +27 (83) 288 7355
Twitter: @michael_cowen

Mobility and Media in Africa

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