5G to contribute $26 billion to Africa by 2030

01 February 2023

5G mobile networks are expected to represent, across their entire value chain, an economic contribution of $26 billion in Africa by 2030, according to the GSMA.

The GSMA expects the number of 5G subscriptions to reach over 340 million on the continent by the end of the current decade, or 20% of total mobile service subscriptions. Together, 4G and 5G are expected to account for almost 66% of total mobile phone service subscriptions in 2030, while 2G will drop to 2% and 3G to 32%.

The report also states that 5G will improve connectivity for homes and businesses through fixed wireless access (FWA) connections, accelerate the transformation businesses and meet the needs of young African generations in terms of connectivity, since it allows access to digital services such as live video streaming, games and metaverse applications, which require high-speed networks performance.

5G will also help stimulate technological innovation. While Africa has a vibrant tech ecosystem supported by a network of over 600 tech hubs and start-up incubators, 5G-specific characteristics such as low latency and high device density will create new opportunities. to develop innovative solutions adapted to the local context.

A survey conducted by the GSMA among a representative sample of consumers in Africa showed that 37% of individuals surveyed believe that the main obstacle to the adoption of 5G mobile services in Africa will be the cost of compatible smartphones; followed by the lack of network coverage (27%); the lack of information on uses (22%); and the satisfaction of basic needs with previous generations such as 4G and 3G (14%).

Among African businesses, the main barriers to 5G adoption are lack of awareness of the benefits of such networks (29%), lack of use cases and proven applications (29%), lack of network coverage (29%) and insufficient technical skills of staff (12%).