Africa’s mobile penetration requires $170bn GDP boost to expand the sector
New research from McKinsey indicates that macroeconomic indicators suggest significant growth potential for African telecommunications companies by 2050. To accelerate growth in the continent, there is a need to unlock the $170 billion GDP boost and reach Africa’s next 500 million users. To unpack what bold, forward-thinking, and strategic choices the continent needs to make, CNBC Africa spoke to Yaw Agyenim-Boateng for more.
Thu, 08 May 2025 14:59:33 GMT
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AI Generated Summary
- Expansion Potential: McKinsey's report highlights the significant growth potential for African telecom companies by 2050, emphasizing the need for strategic investments to unlock a $170 billion GDP boost and reach the continent's next 500 million users.
- Opportunities and Challenges: Boateng points out the opportunities in data usage, youth demographics, and mobile money adoption in sub-Saharan Africa, while also addressing the regulatory challenges and infrastructure gaps that need to be overcome.
- Strategic Investments: To accelerate growth in the sector, Boateng recommends investments in entry-level smartphones, digital infrastructure expansion, and AI training for the workforce. Policymakers are urged to prioritize AI education and language diversity to ensure Africa's competitiveness in the global AI landscape.
A recent report by McKinsey highlights the significant growth potential for African telecommunications companies by 2050, signaling a need for a $170 billion GDP boost and access to the continent's next 500 million users. The report, titled 'Remember the Future,' emphasizes the opportunities that outweigh regulatory challenges and infrastructure gaps in the telecom sector. Yaw Agyenim-Boateng, a key contributor to the report, underscores the rapid rise in data usage in sub-Saharan Africa, driven by the region's large youth population and the adoption of mobile and internet services. Boateng identifies leveraging AI, strengthening digital infrastructure, and diversifying revenue streams as key strategies for unlocking growth in the sector. To capitalize on these opportunities, Boateng suggests investments in entry-level smartphones, expanding digital infrastructure, and training the workforce in AI applications. Policymakers are urged to prioritize investments in AI education and language diversity to ensure Africa's participation in the global AI landscape. The report's insights highlight the need for bold policy choices and strategic investments to propel the telecom sector forward and drive economic growth in the region.
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