Conventional wisdom has it that the story of Africa’s digital economy is one of catch-up. But that narrative is giving way to a more dynamic truth: in Sub-Saharan Africa, mobile phones have become the front door to digital life, shaped by mobile content, mobile payments, and local innovation.
According to the global mobile network industry body GSMA, the mobile industry contributed $140-billion to Sub-Saharan Africa’s GDP in 2023, equivalent to 7% of total economic output. That figure is expected to rise to $170-billion by 2030, underscoring the mobile sector’s expanding role in the region’s economic development.
“The African continent has shown strong growth in mobile content services, driven by increased smartphone adoption and the expansion of mobile networks,” says Dario Betti, CEO of the Mobile Ecosystem Forum (MEF), a global trade association with members across the mobile content and services value chain. “Countries like Nigeria, South Africa, and Kenya are leading the way in this mobile revolution.”
Betti told Gadget that there was one key driver in particular: “Direct Carrier Billing (DCB) has proven to be an efficient way for telecom providers and content platforms to reach wider audiences. It provides a seamless and secure way for users to access digital content without the need for credit cards or bank accounts.”
That is especially significant in regions where banking infrastructure is limited or simply inaccessible to large segments of the population. The ability to pay for content using mobile airtime or by charging purchases to a phone bill has unlocked access to services previously considered out of reach.
“With the advent of mobile money platforms like M-Pesa in Kenya, Airtel Money, and MTN Mobile Money, users can now perform a wide range of financial transactions, including payments for mobile content,” says Betti. “These services have significantly increased financial inclusion in the region and enabled more users to participate in the digital economy.”
The transformation is more than financial.
“There has been a notable increase in locally produced content tailored to the tastes and preferences of African audiences,” he says. “Streaming platforms are investing in African content. For example, Netflix has launched several African originals such as Queen Sono, Blood & Water, and JIVA!. These shows have not only achieved commercial success but also placed African storytelling on the global stage.”
This localisation has been critical in markets that leapfrogged fixed-line internet and desktop platforms entirely.
“In emerging markets like Ghana, Tanzania, and Ethiopia, mobile phones are often the primary access point to the internet. These markets are seeing rapid adoption of mobile content services, especially among younger demographics.”
That demographic shift is also fuelling growth in mobile gaming and entertainment, often overlooked in traditional development models.
“With Africa’s growing interest in mobile gaming and entertainment, the expansion of 5G networks could be a game-changer in helping to drive the mobile content ecosystem forward.”
The rollout of 5G networks in countries like South Africa and Nigeria is expected to accelerate these trends.
“5G will not only improve the quality of content delivery but also unlock new opportunities for mobile services, including virtual and augmented reality experiences, high-definition video streaming, and real-time gaming.”
However, with rapid growth comes regulatory pressure.
“The rapid growth of mobile content and digital payments in Sub-Saharan Africa is accompanied by the need for regulation and compliance. Countries are implementing data protection laws and regulations to safeguard user privacy and ensure fair business practices.
“These regulations not only help to safeguard consumers but also create an environment that encourages more investment from global players,” says Betti.
For content providers aiming to scale across African markets, success will depend on their ability to align payment systems, content formats and compliance protocols with local conditions. That includes fraud prevention, an area where the MEF has been particularly active.
“The MEF has been working closely with telecom operators and regulators to establish anti-fraud frameworks and best practices,” says Betti. “This includes initiatives to combat SIM swap fraud, phishing, and other mobile-based threats.”
Betti is bullish about where the road is leading: “The convergence of mobile content and mobile payments in Sub-Saharan Africa presents a unique opportunity to drive economic growth, enhance digital inclusion, and empower communities. With the right investments in infrastructure, regulation, and local talent, the region can become a global leader in mobile innovation.”
* Arthur Goldstuck is CEO of World Wide Worx and author of “The Hitchhiker’s Guide to AI”.