African Mobile Market: An Economic Titan Great ForMobile Distributors

amgoo.com /blog/african-mobile-market-an-economic-titan-great-for-mobile-distributors

Jul 31, 2014 8:30:00 AM

AMGOO Telecom co. is a specialist phone manufacturer for emerging markets, and there's no marketemerging faster than that of sub-Saharan Africa!

In this blog we're going to break down just why the Sub-Saharan mobile industry in Africa is soimportant to Africa's economy as a whole, and what this means to people like you who are in theAfrican mobile market.

Make no mistake, the African mobile market is huge! With 1 Billion potential subscribers, the will toaccept and embrace change, and the ability to cover fresh ground that doesn't exist in other markets(for instance smartphone adoption which is only just beginning), the situation is looking great for mobiledistributors in Africa.

Indeed, the mobile industry is currently worth around a staggering US$56 Billion, that's 3.5% of theGDP of the entire continent!

But consider that

the region's amount of mobile subscribers is around 253 million at present, that's only around 25% of

what it could be. It is growing, and will hit 346 million by 2017, so in the coming decade there isenormous potential for growth as more and more people will have the wish and means to get a mobilesubscription.

Now is a great time to be a mobile phone distributor in Africa.

The Potential For Growth

The potential for growth is the key to why the mobile industry in Africa is booming. We know thatnumbers of people getting a mobile subscription (or two) is growing year on year, making Africa theworld's second largest mobile market after Asia, but why?

1. People are becoming wealthier. This is relative of course, as many regions and countries arestill fairly poverty-stricken. However in general phone handset prices, and mobile fees arecoming down to a level so as to be accessible for many more users than before.

2. The infrastructure is improving. Mobile networks are easier and less costly to install in manyof the remote areas that Africa has in abundance, therefore with greater coverage and numberof users comes lower pricing. Pricing has further been lowered due to hot competition amongstthe African mobile operators to snap up the steady stream of new subscribers.

However it's not all perfect as, "

36% of people living in the 25 largest African mobile markets still have no access to mobile services(source)." This is changing of course and even the regions lagging behind are catching up to mobilepowerhouses such as Kenya, South Africa, and Nigeria; so as a mobile distributor are you ready to surfthe crest of the wave and be first to be able to offer great value phones to new subscribers?

Data: The New Kid On The Block

Until now, as we've covered before here, voice and text services via feature phones have been king inAfrica. Feature phones are going nowhere for now, and so remain a great line to offer for yourcustomers with the lowest incomes. However smartphone users are catching up quickly, and that's dueto one thing: data.

But what is data?

It's the use of 3G (or higher) networks to access mobile internet.

The benefits of mobile internet are massive, to such an extent that data is changing the face of theAfrican mobile market. Kenya has a fairly mature mobile market, and so is a good example of datauptake: "Data revenues, including SMS, have increased at a remarkable 67% over the last four yearsand now represent 26% of total revenues for the industry.(source)"

Data is only any good to you though, if you have a smartphone; and it's the getting of smartphones intoAfrican hands that has been the problem in the last few years as they've simply been too expensive.

Smartphones are coming down in price rapidly, and although before this meant that quality suffered,the industry has caught up and you're now even able to get a quality smartphone for around only $30!

Potential for growth + affordable smartphones to access data = better business for you

If you're a mobile phone distributor in Africa, and are interested in finding out more about brilliant low-cost smartphones that will help boost profits for your business, click below to discover AMGOO's rangeof handsets. If you find the one/s you like we can consult with you and help to become your partner:

Topics: Smartphone Adoption in Africa , Africa mobile industry