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Youth set to drive growth of mobile handsets in Africa

Sub-Saharan Africa’s mobile economy was valued at more than $150 billion in 2018.

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Sub-Saharan Africa will remain the world’s fastest-growing mobile region over the coming years as millions of young African consumers become mobile users for the first time, according to a new GSMA study. It reveals that more than 160 million new unique mobile subscribers[i] will be added across the region by 2025, bringing the total to 623 million, representing around half of the region’s population, up from 456 million (44 per cent) in 2018. Subscriber additions will be concentrated in high-growth markets such as Nigeria and Ethiopia, the report says.

“A new generation of youthful ‘digital natives’ across Sub-Saharan Africa are set to fuel customer growth and drive adoption of new mobile services that are empowering lives and transforming businesses,” said Akinwale Goodluck, Head of Sub-Saharan Africa, GSMA. “With mobile technology at the heart of Sub-Saharan Africa’s digital journey, it is essential for policymakers in the region to implement policies and best practices that ensure sustainable growth in the mobile industry, and enable the transition to next-generation mobile networks.”

The study calculates that the mobile ecosystem across Sub-Saharan Africa generated almost $150 billion in economic value last year – equivalent to 8.6 per cent of the region’s GDP. It is forecast to generate almost $185 billion (9.1 per cent of GDP) by 2023.

The 2019 Sub-Saharan Africa edition of the GSMA’s Mobile Economy report series is being published at the ‘Mobile 360 – Africa’ event being held this week in Kigali, Rwanda. The new report also reveals that:

  • Around 239 million people, equivalent to 23 per cent of the region’s population, use the mobile internet on a regular basis.
  • Smartphones accounted for 39 per cent of mobile connections[ii] in Sub-Saharan Africa in 2018, forecast to increase to two-thirds of connections by 2025.
  • 3G will overtake 2G to become the leading mobile technology in Sub-Saharan Africa this year.
  • 4G will account for almost one in four connections by 2025. However, 4G uptake is being dampened in some markets by the high cost of 4G devices and delays in assigning 4G spectrum.
  • The region’s mobile operators are increasing investment in their networks and are expected to spend $60 billion (capex) on network infrastructure and services between 2018 and 2025 – almost a fifth of this total being invested in new 5G networks.
  • Sub-Saharan Africa’s mobile ecosystem supports around 3.5 million jobs, directly and indirectly, and last year contributed almost $15.6 billion to the funding of the public sector through consumer and operator taxes.

The new report ‘The Mobile Economy, Sub-Saharan Africa 2019’ is authored by GSMA Intelligence, the research arm of the GSMA. To access the full report and related infographics, please visit: https://www.gsma.com/r/mobileeconomy/sub-saharan-africa/

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Millennials turning 40: NOW will you stop targeting them?

It’s one of the most overused terms in youth marketing, and probably the most inaccurate, writes ARTHUR GOLDSTUCK

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One of the most irritating buzzwords embraced by marketers in recent years is the term “millennial”. Most are clueless about its true meaning, and use it as a supposedly cool synonym for “young adults”. The flaw in this targeting – and the word “flaw” here is like calling the Grand Canyon a trench – is that it utterly ignores the meaning of the term. “Millennials” are formally defined as anyone born from 1980 to 2000, meaning they have typically come of age after the dawn of the millennium, or during the 21st century.

Think about that for a moment. Next year, the millennial will be formally defined as anyone aged from 20 to 40. So here you have an entire advertising, marketing and public relations industry hanging onto a cool definition, while in effect arguing that 40-year-olds are youths who want the same thing as newly-minted university graduates or job entrants.

When the communications industry discovers just how embarrassing its glib use of the term really is, it will no doubt pivot – millennial-speak for “changing your business model when it proves to be a disaster, but you still appear to be cool” – to the next big thing in generational theory.

That next big thing is currently Generation Z, or people born after the turn of the century. It’s very convenient to lump them all together and claim they have a different set of values and expectations to those who went before. Allegedly, they are engaged in a quest for experience, compared to millennials – the 19-year-olds and 39-olds alike – supposedly all on a quest for relevance.

In reality, all are part of Generation #, latching onto the latest hashtag trend that sweeps social media, desperate to go viral if they are producers of social content, desperate to have caught onto the trend before their peers.

The irony is that marketers’ quest for cutting edge target markets is, in reality, a hangover from the days when there was no such thing as generational theory, and marketing was all about clearly defined target markets. In the era of big data and mass personalization, that idea seems rather quaint.

Indeed, according to Grant Lapping, managing director of DataCore Media, it no longer matters who brands think their target market is.

“The reason for this is simple: with the technology and data digital marketers have access to today, we no longer need to limit our potential target audience to a set of personas or segments derived through customer research. While this type of customer segmentation was – and remains – important for engagements across traditional above-the-line engagements in mass media, digital marketing gives us the tools we need to target customers on a far more granular and personalised level.

“Where customer research gives us an indication of who the audience is, data can tell us exactly what they want and how they may behave.”

Netflix, he points out, is an example of a company that is changing its industry by avoiding audience segmentation, once the holy grail of entertainment.

In other words, it understands that 20-year-olds and 40-year-olds are very different – but so is everyone in between.

* Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter and Instagram on @art2gee

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Robots coming to IFA

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Robotics is no longer about mechanical humanoids, but rather becoming an interface between man and machine. That is a key message being delivered at next month’s IFA consumer electronics expo in Berlin. An entire hall will be devoted to IFA Next, which will not only offer a look into the future, but also show what form it will take.

The concepts are as varied as the exhibitors themselves. However, there are similarities in the various products, some more human than others, in the fascinating ways in which they establish a link between fun, learning and programming. In many cases, they are aimed at children and young people.

The following will be among the exhibitors making Hall 26 a must-visit:

Leju Robotics (Stand 115) from China is featuring what we all imagine a robot to be. The bipedal Aelos 1s can walk, dance and play football. And in carrying out all these actions it responds to spoken commands. But it also challenges young researchers to apply their creativity in programming it and teaching it new actions. And conversely, it also imparts scholastic knowledge.

Cubroid (Stand 231, KIRIA) from Korea starts off by promoting an independent approach to the way it deals with tasks. Multi-functional cubes, glowing as they play music, or equipped with a tiny rotating motor, join together like Lego pieces. Configuration and programming are thus combined, providing a basic idea of what constitutes artificial intelligence.

Spain is represented by Ebotics (Stand 218). This company is presenting an entire portfolio of building components, including the “Mint” educational program. The modular system explains about modern construction, programming and the entire field of robotics.

Elematec Corporation (Stand 208) from Japan is presenting the two-armed SCARA, which is not intended to deal with any tasks, but in particular to assist people with their work.

Everybot (Stand 231, KIRIA) from Japan approaches the concept of robotics by introducing an autonomous floor-cleaning machine, similar to a robot vacuum cleaner.

And Segway (Stand 222) is using a number of products to explain the modern approach to battery-powered locomotion.

IFA will take place at the Berlin Exhibition Grounds (ExpoCenter City) from 6 to 11 September 2019. For more information, visit www.ifa-berlin.com

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