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Sub-Saharan Africa’s mobile economy valued at more than US$150 Billion in 2018 – Study

Sub-Saharan Africa’s mobile economy valued at more than US$150 Billion in 2018 – Study

A new GSMA study has revealed that Sub-Saharan Africa will remain the world’s fastest-growing mobile region over the coming years as millions of young consumers become mobile users for the first time.

The study released this week revealed that more than 160 million new unique mobile subscribers1 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%) in 2018. Subscriber additions will be concentrated in high-growth markets such as Nigeria and Ethiopia, the report said.

“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,” he added.

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

Meanwhile, the new report also reveals that: around 239 million people, equivalent to 23% of the region’s population, use the mobile internet on a regular basis.

The report said that smartphones accounted for 39% of mobile connections in Sub-Saharan Africa in 2018, forecast to increase to two thirds of connections by 2025.

According to the report 3G will overtake 2G to become the leading mobile technology in Sub-Saharan Africa this year and 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.

Furthermore the region’s mobile operators are increasing investment in their networks and are expected to spend US$60 billion (capex) on network infrastructure and services between 2018 and 2025 – almost a fifth of this total being invested in new 5G networks.

The report noted that Sub-Saharan Africa’s mobile ecosystem supports around 3.5 million jobs, directly and indirectly, and last year contributed almost US$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.


Caption: To access the full report and related infographics, please visit: https://www.gsm.com/r/mobileeconomy/sub-suharan-africa/.


 

Following reverse listing, public can now acquire shareholding in Paratus Namibia

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20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.