Mobile-advertising network InMobi has closed its Africa-based operations due to what it described as the low uptake of mobile phone-based marketing across the continent
InMobi confirmed that its offices in Kenya and South Africa would be shut down, with the company set to relocate its operations to either its Dubai or London-based offices.
In a statement, the company said, “Like all successful and growing businesses, we routinely review our business to determine where we need to align investment based upon growth opportunities.
“Current global market conditions justify changes to the investment levels we make in certain countries in order to best structure the organisation to take advantage of the different opportunities around the world.”
InMobi currently boasts of approximately 578mn customers in 165 countries worldwide. A report on Ventures Africa said that the move was surprising in terms of the growth in mobile and Internet penetration and use on the continent.
The Communications Commission of Kenya recorded 75.4 per cent mobile penetration in Kenya as at June this year, with more than 29.7mn mobile users in the East African country.
It also informed that the country had 14.03mn Internet users, with penetration having risen to 35.5 per cent of the population, up from 22 per cent only a year ago.
The South African government is also pushing for increases in mobile and Internet penetration, with 100 per cent Internet coverage being named as one of the government’s Vision 2020 targets.
