mobility and media in africa

Exploring Africa's Mobile Potential

Mobile is opening up Africa’s economic potential, letting your brand tap into

Africa’s markets

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May 2013

• According to the GSMA, Africa is the world's second largest mobile market by connections after Asia, and the fastest growing mobile market in the world.

• The information provided are to give an indication of the size and growth of the Sub-Saharan mobile telecoms and digital media market.

• The data provided is a collection of information sourced from numerous sources and compiled together to create an understanding the market and its size.

• Some data due to time/dates and sources may vary, this should be taken into account when going through the presentation.

• Some sources may represent conflicting data so that should be taken into account when reading through and comparing the data provided.

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Mobile Telecoms across Sub-Saharan Africa.

The mobility trends shaping communication and client engagement across Sub-Saharan Africa

Above 100%

60-100%

40-60%

Less than 40%

The true size of AfricaMobile telecoms across Sub-Saharan Africa

“According to the GSMA, Africa is now the world's second largest mobile market by connections after Asia, and the fastest growing mobile market in the world.” – September 2011

High Level StatisticsMobile telecoms across Sub-Saharan Africa

47COUNTRIESIN SSA 44%GROWTH IN THE NUMBER OF

MOBILE CONNECTIONS, %, 2000–2012

475MMOBILE CONNECTIONS (ACTIVE SIM CARDS) IN SSA

54%MOBILE PENETRATION RATE IN SSA

700MMOBILE CONNECTIONS (ACTIVE SIM CARDS) IN SSA IN 2016

17%ETHIOPIA TO RECORD THE HIGHEST GROWTH RATE BY 2017

103MMTN’S SUBSCRIBER BASE ACROSS SSA

Above 100%

60-100%

40-60%

Less than 40%

Source: GSMA / Deloitte Mobile Observatory Report, 2012

How is Sub-Saharan Africa divided?Mobile telecoms across Sub-Saharan Africa

• The 47 countries within the SSA region show significant economic and social differences.

• While the average annual income per capita in the region stands at US$2,439, it varies from US$216 in the Democratic Republic of Congo (DRC), the poorest country, to US$14,660 in Equatorial Guinea, the richest country.

• The six most populous countries (Nigeria, Ethiopia, DRC, South Africa, Tanzania and Kenya) cover more than 50% of the population in the region.

Map Source: United NationsSource: GSMA / Deloitte Mobile Observatory Report, 2012

The size of the mobile telecoms market in Sub-Saharan Africa

Mobile telecoms across Sub-Saharan Africa


Population and connections

Growth in the number of mobile connections, %, 2000–2012

Since 2000, mobile connections in SSA has grown by 44%,

compared to 10% for developed regions

475 million connections in Sub-Saharan

Africa

Growth forecasts for the Sub-Saharan regionMobile telecoms across Sub-Saharan Africa


Mobile Connections, Population and Mobile penetration in SSA (2000–2016)

Supported by income growth, it is expected that penetration will continue to grow steadily over the next few years,

reaching 75% of the population and 700 million connections in 2016.

Mobile penetration rates across the regionMobile telecoms across Sub-Saharan Africa


Penetration by country (2012

Above 100%

60-100%

40-60%

Less than 40%

• Mobile penetration varies widely across the sub-regions.

• Southern Africa has the highest mobile penetration, at 119%, mainly as South Africa shows a 123% penetration and over 50 million connections.

• Penetration is lowest in Eastern and Middle Africa at 39% and 40% respectively.

• However, mobile connections have been growing rapidly in these sub regions, increasing by 366% and 260% respectively in the last five years.

GDP per capita and population in selected countriesMobile telecoms across Sub-Saharan Africa


Penetration, GDP per capita and population in selected SSA countries (2012)

Senegal

Niger

Angola

Cote d'Ivoire

GhanaKenya

Tanzania

South Africa

Nigeria

0

2,000

4,000

6,000

8,000

10,000

20% 40% 60% 80% 100% 120%

GD

P p

er

ca

pit

a (

US

$)

Penetration rate (%)

Penetration and connections (sim cards) across key markets

Mobile telecoms across Sub-Saharan Africa


Penetration, five key markets and Senegal (2000–2012)

0%

20%

40%

60%

80%

100%

120%

140%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Kenya Ghana Nigeria

Tanzania South Africa Senegal

98.3

62.429.223.821.4

19.315.815.014.512.711.411.310.3 9.7 8.6

91.4454.9

0

50

100

150

200

250

300

350

400

450

500

Co

nn

ecti

on

s (m

illi

on

s)

Mobile Connections, top 15 countries (2012)

The five key markets currently represent 47% of

total connections in the region, and penetration has increased by 81% per year on average between 2000

and 2012, with similar trends seen in Senegal.

Mobile Connections:• Nigeria: 98.3 million• South Africa: 62.4 million• Kenya: 29.2 million• Tanzania: 23.8 Million• Ghana: 21.4 Million

Growth rates from 2012 – 2017 across key markets Mobile telecoms across Sub-Saharan Africa

Source: Informa Telecoms and Media / World Cellular Information Service (Quarter 2, 2012)

“Ethiopia to record highest growth rate by 2017”

Mobile operator groups across Sub-Saharan AfricaMobile telecoms across Sub-Saharan Africa

Headquarters: South Africa

Connections: 103,319,174

Territories: 15

Headquarters: UK


Territories: 7

Headquarters: India


Territories: 16

Headquarters: France


Territories: 17


Mobile operator groups across Sub-Saharan AfricaMobile telecoms across Sub-Saharan Africa

Headquarters: Nigeria


Territories: 3

Headquarters: UAE


Territories: 8

Headquarters: Luxembourg


Territories: 7


Mobile internet and Mobile broadband

Growth of mobile broadband services across AfricaMobile Internet and Mobile Broadband

60 MILLIONMOBILE BROADBAND CONNECTIONS

5%PENETRATION

80%ANNUAL GROWTH

Source: Wireless Intelligence (Quarter 1, 2013)

Mobile Internet Traffic as a percentage of overall web traffic

Mobile Internet and Mobile Broadband

Source: Statscounter (Sept to Dec 2012)

Desktop vs. Mobile InternetAfrica: 14.33% = Mobile Internet TrafficAfrica: 85.67% = Desktop (Web) Traffic

Top mobile broadband markets across AfricaMobile Internet and Mobile Broadband

Source: Informa Telecoms and Media / World Cellular Information Service (Quarter 2, 2012)

Fixed verses. Mobile Broadband Subscribers in South AfricaMobile Internet and Mobile Broadband

Source: Internet Access in SA 2012, World Wide Worx

South Africa ADSL vs. Mobile Broadband

There are approximately 7 mobile broadband connections (3G modems) to every 1 ADSL connection in South Africa. The ratio is even

higher across Sub-Saharan Africa

Fixed vs. Mobile Broadband Subscribers in Sub-Saharan Africa

Mobile Internet and Mobile Broadband

Source: Wireless Intelligence, Vodafone Public Policy Papers 2011

2.9 3.2 3.5 3.9 N/A

34.5

54.1

81.2

117.5

160.2

0

20

40

60

80

100

120

140

160

2012F 2013F 2014F 2015F 2016F

Total Fixed Broadband Total Mobile Broadband

Fixed and mobile broadband subscribers in SSA, million connections (2012–2016)

Given the low penetration of fixed lines, mobile internet has the potential of

driving connectivity in the region at lower costs.

Across the region, its connectivity via mobile devices (phones and dongles)

that’s driving digitally connected subscribers across the continent)

SOURCE: (MARCH 2012)

Based on the Top 10 site listings from Opera Mini, a word cloud of the popular sites users are accessing on Opera Mini across Africa

Note: The word cloud is not based on unique views, rather appearance of the site in each countries top 10 listing

Opera Mini – State of Mobile Web in AfricaMobile Internet and Mobile Broadband

Digital Media

Mobile Web Banners

SOURCE: (Q2 – 2012)

Mobile Web Banner AdvertisingInmobi, Quarter 2-2012 (Africa Overview)

Digital Media: Mobile Web Banners

Mobile Web Banner AdvertisingInmobi, Quarter 2-2012 (Africa Overview)

Digital Media: Mobile Web Banners

SOURCE: (Q2 – 2012)

Handset insights

SOURCE:

The availability of low-cost smartphones has increased adoption in the continent. Informa Telecoms & Media forecasts a penetration of

12% by end-2017.

Smartphone penetration in AfricaMobile Device Observations

SOURCE:

Africa, smartphone-connection penetration by country, 2011-2017

Mobile Device Observations

Mobile devices used on various platforms in South AfricaHigh penetration of mobile internet enabled feature phones

Mobile Device Observations

SOURCE: (MARCH 2012)Note: The word cloud is not based on unique views, rather appearance of the handset in each countries top 10 listing

Based on the Top 10 handset listings from Opera Mini, a word cloud of the popular handsets users are using to access Opera Mini across Africa

Opera Mini – State of Mobile Web in AfricaMobile Device Observations

Mobile Device ObservationsSmartphone device sales to end users in South Africa during 2012. BlackBerry’s continued market share (54%) and the growth of the Android platform (254%)

Social Media across Africa

SOURCE: OCT 2012

Mxit is one of the success stories of the South African mobile explosion. The platform allows for targeted advertising opportunities through splash screens and other inventory assets on the platform.


Instant messaging platforms: 2GO Messaging PlatformSocial Media across Africa

Facebook across AfricaSocial Media across Africa

Twitter usage across Africa: Through analysis of 11.5 million geo-located Tweets and a poll of Africa’s top tweeters, the study surveyed Twitter traffic and trends across the continent.


Source Credits

Presentation Source CreditsList of sources

• 2go• Afrographique• Deloitte Digital• Gartner• GSMA Mobile Observatory Report 2012• Informa Telecoms and Media• Inmobi• Mxit• Opera Mini• Portland• Social Bakers• Statscounter• United Nations • Vodacom South Africa• Wireless Intelligence• World Cellular Information Service • World Wide Worx

For further information, please contact:

Andre HugoDirector, Deloitte Digital

Email: [email protected]

Mobile: +27 (82) 354 3965

Twitter: @maxrsa

Michael CowenClient Lead Director (Digital), Mindshare

Email: [email protected]

Mobile: +27 (83) 288 7355

Twitter: @michael_cowen

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