5G technology will add billions in value to Sub-Saharan Africa
According to a report by GSMA, Sub-Saharan Africa is expected to see an $11 billion economic gain by 2030 as a result of 5G technology. With 226 million connections anticipated by 2030, the 5G adoption is likely to accelerate due to rising internet demand – offering great economic potential for sectors like manufacturing and services.
As operators continue to modernize and prepare their networks, 5G is gaining traction in the African continent. Forecasts indicate that 5G adoption rates will spike in the second half of this decade and reach 17% by 2030.
Sub-Saharan Africa is predicted to have 226 million 5G connections by 2030, which translates to a 17% adoption rate. Nearly half of these connections – a sizeable portion – will be located in South Africa and Nigeria.
As of September 2023, 27 operators in 16 African markets have reportedly launched commercial mobile 5G services in the region, while several others have plans for a 5G launch. In the coming years this number will accelerate, and as a result, much of the benefits of 5G will materialize over the period to 2030.
As a significant percentage of organizations are still en route to migrate to 4G networks (3G still is the most dominant technology accounting for 55% of total connections), 5G adoption in the region will occur gradually and steadily.
By 2030, 5G is expected to benefit the Sub-Saharan African economy by $11 billion, according to GSMA’s estimates. This financial impact will account for more than 6% of the mobile industry’s overall economic clout.
The benefits of 5G will become increasingly apparent in the period up to 2030, particularly given that certain nations are still in the first stages of implementing 5G technology. The benefits are anticipated to become more substantial and widespread as it continues to gain traction.
5G is expected to benefit most sectors, depending on their ability to incorporate 5G use cases into their daily operations. Over the period to 2030, 32% of the benefits are expected to come from the manufacturing sector, driven by applications such as smart factories, smart cities, and smart grids, and 29% from the services sector.
Governments are another group that will be keen on tapping the benefits of 5G, with use cases ranging from public services and maintenance to assets, through to security and critical infrastructure safety.
Meanwhile, despite the growing momentum, the approach to 5G in Sub-Saharan Africa will need to account for the current connectivity landscape and unique market features that could affect the rollout and adoption of the technology. The region’s 5G network ecosystem players must find ways to deliver cost-effective and efficient 5G networks, balancing investment and value creation,” said the researchers.
