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

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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How to create an esports team

2018 was a landmark year for South African esports as one of the country’s best teams took the battle overseas and made waves in the international scene. A year ago Bravado’s top Counter-Strike: Global Offensive (CS:GO) team relocated to Arizona in the U.S., a venture dubbed Project Destiny, where they used the opportunity to train as full-time professional athletes and conquer the best teams out there.

Project Destiny was a massive success. A year later and Bravado’s CS:GO team had carved a name for itself through several high-profile victories and invitations to top tier tournaments. Clearly this is not the end of the story and the team has been reflecting on the lessons and opportunities.

Team captain Dimitri “Detrony” Hadjipaschali helped lead Project Destiny and gleaned a considerable amount on what needs to go into an esports team.

Team for the right reasons

For aspirant pro players who want to up their game, pun intended, he advises starting at the basics: why do you want a team?

“In recent times, people want to create a team with no direct intention, not knowing if they want to do this casually and socially, or professionally. Doing this professionally requires risk. It depends on how much work and sacrifices are contributed to the cause of creating a team. Playing socially is fine, part-time, as many people do, but playing professionally and wanting to reach the top one day, purely depends on your dedication, motivation and intention.”

Put in the hours

Like any aspirant pro athlete, preparation requires hours of training. Bravado’s players all put in several hours of training daily, 7 days a week, and Project Destiny’s full-time pros worked multiple training sessions every day, usually in the morning and afternoon for 4 hours each, as well as competitive matches in the late evening.

But even Bravado members who are not full time still put in hours of training every day. Serious players need to find the time and build up their dedication because this level of performance is simply the bar set in esports. Said Dimitri:

“The general esports title or game a team competes in will require anything, if not more than, a traditional sport outside of esports would require to get to the top.”

Fortunately, you don’t have to go all-out from the start. Esports are tiered with the top players in the highest tiers. So there is space to cut your esporting teeth while making room for it in your life. But never forget that to be one of the best means no half-measures. In esports, you have to commit to win.

Share goals

“A good team player is an individual who views his team as a single unit and not just himself as an ‘individual player’ in the bigger picture,” said Dimitri. “They put their team first and before themselves. This is the first main fundamental of a mindset required for a team player.”

Pro teams shouldn’t be mistaken for gaming clans, which are more casual and where gaming is a hobby. Even though they can be very competitive, clans mostly play for fun and entertainment, whereas a professional team is highly competitive with goals that it sets out to accomplish.

This is important because it helps the team members agree on the importance of those goals and the focus required. If you are not willing to show up every day to play the same game, partake in training exercises and learn from feedback, a pro career won’t work for you:

“Playing professionally requires aligned individuals where they share common goals and have equal intentions to realize what they want to achieve and what it takes to compete at a high level.”

Be patient

Professional athletes aren’t created overnight. It takes many years of focus and dedication while also pursuing studies or working at a day job before someone manages to ascend into a paid career. Esports is the same and demands patience alongside dedication.

Esports teams amplify this requirement. While in Arizona, Bravado applied the maxim “Teams who work together win together.” Household chores were divided up between players, creating a sense of common responsibility. This repetitive reinforcement of team values is crucial for success, whereas impatience for a team to ‘click’ is a recipe for disaster:

“Often, teams do not achieve their desired results and achievements in the short run and immediately resort to a roster change. Or someone in the team is replaced without a completely valid reason. This underestimates the importance of sticking together to create synergy in the long run.”

He also added that using time smartly is perhaps even more important than the amount of time spent on training. The team under Project Destiny used a full-time coach who helped set routines, objectives and priorities:

“The mistake with teams struggling to improve these days is that they do not know and understand how to work with limited time, and how to do this best and constructively as possible. Often teams that aren’t at a top competitive level yet arrange bootcamps, but set the limited time they have with each other incorrectly, or rather not to the best potential.”

When Bravado embarked on Project Destiny, it aimed to put South African esports on the map and serve as role models for aspirant players in the country. By those measures, it has been a huge success and Bravado continues to grow and educate. Through the ongoing support of sponsors Alienware and Intel, Bravado continues its mission of creating esporting excellence and opportunity for South Africans.

Learn more at bravadogaming.com or contact Bravado’s players directly via their social media accounts.

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Opera reveals SA browsing habits

Opera, one of the world’s major browser developers, and leader in AI driven digital content delivery and discovery, has released its State of Mobile Web 2019 report, revealing that nine out of ten people in South Africa use their mobile browser every day.

Other Key findings from the report include:

  • Internet users in Africa use their browser to access social media domains such as Facebook, YouTube, Twitter and Instagram, followed by entertainment and search websites
  • Opera News users in Africa spend 50% of in-app time watching videos
  • South Africans pay six times more per gigabyte of mobile data than people in India
  • Opera Mini saved users nearly 100 million USD in mobile data in 2018

The report reveals that the Opera mobile browsers and standalone news app were used by nearly 20 million internet users in Africa and by more than 350 million people globally in the first quarter of 2019. The State of Mobile Web 2019 report also shows that Opera experienced a growth of more than 26 percent of its user base year on year, compared to the first quarter of 2018 in Africa.

“We are thrilled to see that our mobile browsers and news app have grown by 25 million monthly users in the last year, ” said Jørgen Arnesen, Head of Marketing and Distribution at Opera. “The new Opera News app has led this positive growth, as well as the introduction of new features to our mobile browsers like built-in VPN and crypto wallet. The successful partnerships Opera has with major smartphone manufacturers in Africa have also contributed to this massive growth”.

The 2019 edition of the State of the Mobile Web report looked into the use of the Opera Mini browser and the Opera browser for Android, and it shows that mobile browsing is one of the most popular online activities among African internet users. For example, in South Africa, nine out of ten people use their mobile browser every day, an activity they prefer over the use of other applications like YouTube.

The report also revealed that on average, Africans using Opera spend more than 30 minutes browsing online each day. The most browsed category of websites was social media platform domains such as Facebook, YouTube and Instagram, followed by search engines like Google, and entertainment and sport websites.

100 million dollars  saved on mobile data

In the State of the Mobile Web 2019 report, Opera gives detailed insight into the use of the data savings feature in the Opera Mini browser, and compares the average price of mobile data in 20 countries in Africa. The results revealed that the data compression mode in Opera Mini saved users nearly 100 million USD of data in 2018.

In this analysis, Opera also compared the costs of data in some African countries with the cost of mobile data in India and Germany. The outcome of this analysis showed that South Africans pay six times more per gigabyte of mobile data than Indians and almost the same price as Germans for one gigabyte of mobile data.

Rapidly changing  news and video consumption landscape

The report takes a look at the trends of news and video consumption across Africa. This includes analyzing the usage of its standalone Opera News app, which grew from launch to over 20 million users in a period of one year. Categories like breaking news, local news, and entertainment were the favourites among users in the first quarter of the year.

Video content is also becoming more popular among people who use the Opera News app. The report shows that people spend 50 percent of in-app time inOpera News watching videos on Instaclips, the recently added video feature on the news app.

The usage of Instaclips keeps growing since its test launch in December 2018: in Q1-2019, Instaclips registered a total of 122,000 videos uploaded in different languages such as English, Portoguese, French, Arabic and Swahilli.

Expanding beyond browsing to fuel digital transformation

Opera’s commitment to digital transformation in Africa is ongoing. Beyond the development of its mobile browsers and standalone news app, Opera has made major investments on the African continent, expanding its services to other technology areas such as FinTech and digital advertising.

In 2018, Opera announced the launch of OKash, a fintech micro-lending solution that quickly gained traction among mobile internet users in Kenya. Today, OKash ranks among the most downloaded micro lending applications among Kenyans and its user base keeps on growing.

In May 2019,Opera announced the introduction of Opera Ads, a new advertising platform that allows media agencies and publishers to run more targeted marketing campaigns through the Opera platforms.

Available online

The full version of State of Mobile Web 2019 report is available to read online or for download by clicking here.

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