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Mobile industry adds $100bn to sub-Saharan Africa GDP

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The mobile industry in Sub-Saharan Africa contributed more than US$100 billion to the region’s economy last year, according to a new GSMA study published at the ‘Mobile 360 Series – Africa’ conference recently held in Cape Town.

The new study, ‘The Mobile Economy – Sub-Saharan Africa 2015’, finds that the US$102 billion economic contribution in 2014 was equivalent to 5.7 per cent of the region’s GDP. Mobile operators directly contributed US$31 billion, representing 1.7 per cent of GDP. This economic contribution is set to increase over the coming years as mobile operators continue to extend connectivity to unconnected populations across the region and roll out new mobile broadband networks and services. The industry is forecast to contribute US$166 billion in value to the region by 2020, equivalent to 8 per cent of expected GDP by this point.

“The mobile industry remains a key driver of economic growth and employment in Sub-Saharan Africa, making a vital contribution given the population growth and high unemployment levels seen in many countries in the region,” said Alex Sinclair, Acting Director General and Chief Technology Officer at the GSMA. “Despite revenue and margin pressures, local mobile operators continue to invest heavily to extend network coverage to serve unconnected communities and accelerate the migration to high-speed 3G/4G mobile broadband networks. Mobile technology is also playing a central role in Sub-Saharan Africa by addressing a range of socio-economic challenges, particularly digital and financial inclusion, and enabling access to vital services such as education and healthcare.”

The World’s Fastest-Growing Mobile Region

It is forecast that there will be 386 million unique mobile subscribers in Sub-Saharan Africa by the end of this year, equivalent to 41 per cent of the region’s population. The region’s subscriber base has grown by 13 per cent a year (CAGR), on average, during the first half of this decade (2010 to 2015), growing at more than twice the rate of the global average (6 per cent) during this period. The region overtook Latin America in 2014 to become the world’s third-largest mobile subscriber market, behind only Asia Pacific and Europe. The number of unique mobile subscribers in Sub-Saharan Africa is forecast to surpass half a billion (518 million) by 2020, representing almost one in two (49 per cent) of the region’s population by this point.

Total mobile connections in Sub-Saharan Africa are on track to reach 722 million by year-end. Mobile broadband (3G/4G) will account for almost a quarter of connections this year, but will increase to 57 per cent by 2020, driven by expanding mobile broadband network coverage and falling device costs. Commercial 3G networks have been launched in 41 countries across Sub-Saharan Africa as of June 2015, while 4G networks have been launched in 23 countries.

Investment in these high-speed networks is resulting in a corresponding growth in consumers using their devices to access the internet; almost a quarter (23 per cent) of the Sub-Saharan African population will be using the mobile internet this year, a figure forecast to rise to 37 per cent by 2020. Mobile is seen as the primary means of accessing the internet in a region where fixed-line infrastructure is severely limited.

The increasing availability of mobile broadband networks, alongside the introduction of affordable mobile data tariffs and falling device prices, has led to a surge in smartphone use. The smartphone adoption rate has doubled over the last two years and now accounts for one in five connections, though this is still half the global adoption average (40 per cent). It is predicted that regional smartphone connections will reach 540 million by 2020, accounting for half of total connections by that point. The report notes that the average selling price (ASP) of smartphones has fallen significantly in most regional markets, with an increasing number of models now available in the sub-US$100 price range.

Investing In Jobs, Networks and Innovation

In 2014, the mobile ecosystem directly employed approximately 2 million people in Sub-Saharan Africa, with the majority working in the distribution and retail sectors and approximately 325,000 employed by mobile operators. A further 2.4 million jobs were indirectly supported as result of the demand generated by the mobile sector, bringing the total to 4.4 million. It is forecast that the industry will grow to support more than 6 million jobs by 2020. The mobile ecosystem also made a contribution to the public finances of the region’s governments via general taxation of approximately US$15 billion in 2014.

Mobile operators in the region invested US$9 billion in network infrastructure development in 2014, a 16 per cent increase on the amount invested in 2013. The ongoing investment in mobile broadband networks will see capital investments reach US$13.6 billion by 2020.

The report highlights how mobile operators are working on innovative solutions to expand network coverage to underserved populations in rural and geographically remote areas, and to tackle the barriers to mobile phone adoption, including affordability and digital literacy. It also indicates that mobile operators, governments and international development organisations have been working on a range of mobile-based solutions to address a variety of social challenges in the region, many of which arise from lack of access to essential services, such as basic education and health.

“Mobile is having a hugely positive and transformative impact across Sub-Sahara Africa, but future progress will depend on governments working with the industry to provide a regulatory environment that encourages investment and innovation,” added Alex Sinclair.

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Get your passwords in shape

New Year’s resolutions should extend to getting password protection sorted out, writes Carey van Vlaanderen, CEO at ESET Southern Africa.

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Many of us have entered the new year with a boat load of New Year’s resolutions.  Doing more exercise, fixing unhealthy eating habits and saving more money are all highly respectable goals, but could it be that they don’t go far enough in an era with countless apps and sites that scream for letting them help you reach your personal goals.

Now, you may want to add a few weightier and yet effortless habits on top of those well-worn choices. Here are a handful of tips for ‘exercises’ that will go good for your cyber-fitness.

I won’t pass up on stubborn passwords

Passwords have a bad rap, and deservedly so: they suffer from weaknesses, both in terms of security and convenience, that make them a less-than-ideal method of authentication.  However, much of what the internet offers is independent on your singing up for this or that online service, and the available form of authentication almost universally happens to the username/password combination.

As the keys that open online accounts (not to speak of many devices), passwords are often rightly thought of as the first – alas, often only – line of defence that protects your virtual and real assets from intruders. However, passwords don’t offer much in the way of protection unless, in the first place, they’re strong and unique to each device and account.

But what constitutes a strong password?  A passphrase! Done right, typical passphrases are generally both more secure and more user-friendly than typical passwords. The longer the passphrase and the more words it packs the better, with seven words providing for a solid start. With each extra character (not to mention words), the number of possible combinations rises exponentially, which makes simple brute-force password-cracking attacks far less likely to succeed, if not well-nigh impossible (assuming, of course, that the service in question does not impose limitations on password input length – something that is, sadly, far too common).

Click here to read about making secure passwords by not using dictionary words, using two-factor authentication, and how biometrics are coming to web browsers.

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Code Week prepares 2.3m young Africans for future

By SUNIL GENESS, Director Government Relations & CSR, Global Digital Government, at SAP Africa.

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On January 6th, 2019, news broke of South African President Cyril Ramaphosa’s plans to announce a new approach to education in his second State of the Nation address, including:

  • A universal roll-out of tablets for all pupils in the country’s 23 700 primary and secondary schools
  • Computer coding and robotics classes for the foundation-phase pupils from grade 1-3 and the
  • Digitisation of the entire curriculum, , including textbooks, workbooks and all teacher support material.

With this, the President has shown South Africa’s response to a global challenge: equipping our youth with the skills they’ll need to survive and thrive in the 21st century digital economy.

Africa’s working-age population will increase to 600 million in 2030 from a base of 370 million in 2010.

In South Africa, unemployment stands at 26.7 percent, but is much more pronounced among youths: 52.2 percent of the country’s 15-24-year-olds are looking for work.

As an organisation deeply invested in South Africa and its future, SAP has developed and implemented a range of initiatives aimed at fostering digital skills development among the country’s youth, including:

AFRICA CODE WEEK

Since its launch in 2015, Africa Code Week has introduced more than 4 million African youth to basic coding.

In 2018, more than 2.3 million youth across 37 countries took part in Africa Code Week.

The digital skills development initiative’s focus on building local capacity for sustainable learning resulted in close to 23 000 teachers being trained in the run-up to the October 2018 events.

Vital to the success of Africa Code Week is the close support it receives from a broad spectrum of public and private sector institutions, including UNESCO YouthMobile, Google, the German Federal Ministry for Economic Cooperation and Development (BMZ), the Cape Town Science Centre, the Camden Education Trust, 28 African governments, over 130 implementing partners and 120 ambassadors across the continent.

SAP’s efforts to drive digital skills development on the African continent forms part of a broader organisational commitment to the UN Sustainable Development Goals, specifically Goal 4 (“Ensure quality and inclusive education for all”)

A core component of Africa Code Week is to encourage female participation in STEM-related skills development activities: in 2018, more than 46% of all Africa Code Week participants were female.

According to Africa Code Week Global Coordinator Sunil Geness, female representation in STEM-related fields among African businesses currently stands at 30%, “requiring powerful public-private partnerships to start turning the tide and creating more equitable opportunities for African youth to contribute to the continent’s economic development and success”.

Click here to read more about the Skills for Africa graduate training programme, and about the LEGO League.

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