Mobile

Rajesh Chandiramani stepping into the role of CEO in June. (Image source: Comviva)

Rajesh Chandiramani, CEO of global mobile solutions leader Comviva, has outlined the company’s strategic vision and the importance of the African market to its growth plans

The CEO, who stepped into the new role in June this year, made the comments while speaking to Robert Daniels, Editor of African Review, in a digital interview. In the session, Chandiramani described how the company has evolved its platforms and technologies to consistently push the boundaries with intelligent software solutions that drive substantial business impact for its customers across the globe and is systematically investing to pave the way for a brighter, digitally-connected future. 

While India was the start point for Comviva, Chandiramani explained that Africa was its second stop and, therefore, has the continent in its DNA. With both regions experiencing a growth economy, the company is consistently being challenged to meet new demands but has, so far, met each of these through its dedication and diverse, evolving portfolio.

Discover the full interview with here

GSMA's 2024 report reveals the transformative impact of mobile technology in Sub-Saharan Africa, highlighting key challenges and growth opportunities. (Image source: Adobe Stock)

The mobile industry contributed US$140bn to Sub-Saharan Africa's GDP in 2023 and could reach US$170bn by 2030 if key connectivity challenges are overcome, according to the newly launched Mobile Economy Sub-Saharan Africa 2024 Report from GSMA

Mobile technology is pivotal for advancing development in essential sectors like healthcare, education, and finance by broadening internet access and expanding digital services.

As digitalisation continues to progress, the report underscores the importance of 4G, which is projected to represent half of all connections by 2030. Yet, significant challenges remain: 13% of the population lacks coverage, while 60% of those within coverage areas still face barriers such as device affordability, limited digital skills, and concerns over online security.

Beyond connectivity, the region contends with high operational costs, inflation, and volatile energy prices. However, emerging technologies like generative AI and satellite collaborations are offering innovative ways to close gaps across industries. Broader API initiatives, such as GSMA’s Open Gateway, which recently introduced security APIs in South Africa, aim to enhance digital security and streamline services across the region. Tackling these issues is essential for unlocking the socio-economic benefits of mobile connectivity in Sub-Saharan Africa.

“Our findings this year reveal both the extraordinary potential and the challenges facing Sub-Saharan Africa’s mobile ecosystem,” said Angela Wamola, Head of Sub-Saharan Africa, GSMA. “To fully realise the benefits of connectivity, it is essential for operators, policymakers, and stakeholders to address affordability barriers, support infrastructure expansion, and foster collaborations that drive digital inclusion and economic impact.”

Key insights from the 2024 report:

* Usage Gap: Despite reaching 27% mobile internet penetration by the end of 2023, the region has a 60% usage gap, representing millions who live within network coverage but are constrained by factors like device affordability, limited digital skills, and online security concerns. Sub-Saharan Africa has the world’s largest usage gap, with 3.1 billion people—39% of the global population—affected by this issue.

* 4G Expansion and 5G Introduction: 4G adoption is expected to reach 50% by 2030, surpassing 3G as the dominant technology. Though 5G is still in its early stages, it is projected to account for 17% of total connections by 2030, primarily in South Africa, Nigeria, and Kenya.

* 5G Economic Potential and Infrastructure: By 2030, 5G alone is expected to contribute US$10bn to the regional economy, representing 6% of the mobile sector's economic impact. The report emphasizes the need for progressive spectrum policies, particularly in the mid-band spectrum, to support growth and equitable digital access. 5G Fixed Wireless Access (FWA) is also becoming a preferred broadband option in Angola, South Africa, Nigeria, Kenya, Zambia, and Zimbabwe to meet high-speed connectivity needs in underserved regions.

* Digital Security Initiatives: South Africa has become the first Sub-Saharan country to deploy GSMA Open Gateway APIs, focused on fraud prevention and security through Number Verification and SIM Swap APIs. This initiative is part of a broader push to improve digital security, particularly in digital banking.

* Generative AI Opportunities: Generative AI could add up to US$1.5 trillion to Africa's economy by 2030, with mobile operators increasingly using AI to enhance customer engagement and network efficiency. Operators like MTN and Vodacom are deploying AI-driven initiatives to boost operational efficiency, although the region faces a shortage of skilled AI professionals.

The report outlines several strategic actions to enable sustainable growth and digital inclusion:

* Affordability Initiatives: High costs are a barrier to mobile access. The report advocates for lowering taxes on the sector, such as reducing import duties on handsets and cutting activation fees, to make services more affordable and accessible.

* Reforming Universal Service Funds (USFs): Many USFs in the region are underperforming, often due to inefficiencies. The report calls for reforms to increase transparency, speed up disbursements, and focus funds on impactful initiatives, such as digital literacy programs for underserved communities.

* Progressive Spectrum Policy: To meet growing data demands, governments are urged to release additional spectrum, particularly in the 6 GHz band, and adopt policies that facilitate efficient, affordable, and environmentally sustainable mobile network expansion.

GSMA reveals Africa's connectivity challenges; 60% usage gap limits growth. (Image source: Adobe Stock)

The GSMA, a global organisation connecting the mobile ecosystem, has released its 'State of Mobile Internet Connectivity 2024 report', revealing that 43% of the global population still do not use mobile internet

Despite consistent annual growth in users, progress has slowed. In 2023, 160 million people started using mobile internet, bringing the total number of users to 4.6 billion, a figure similar to the previous year. However, this marks a slowdown from the 2015-2021 period, when more than 200 million new users were added each year.

According to the report, 350mn people, or 4% of the global population, live in remote areas without access to mobile internet, while 3.1bn people (39%) live within coverage but do not use the service, creating a substantial "usage gap." This gap remains the biggest challenge in expanding internet access.

The GSMA report, funded by the UK Foreign, Commonwealth and Development Office (FCDO) and the Swedish International Development Cooperation Agency (Sida), estimates that getting the unconnected population online could add US$3.5 trillion to the global economy between 2023 and 2030, with most of the benefits impacting low- and middle-income countries (LMICs). However, closing this gap will require an estimated US$418bn in infrastructure investment to achieve universal mobile internet access.

Africa: Least connected region

Only 27% of the region’s population uses mobile internet, leaving a 13% coverage gap and a massive 60% usage gap, indicating that many live within mobile internet coverage areas but do not use the service.

A key obstacle is affordability. In low- and middle-income countries (LMICs), entry-level internet-enabled devices cost around 18% of average monthly income, but in Sub-Saharan Africa, this figure skyrockets to 99% for the poorest 20% of the population. This makes mobile internet devices out of reach for a significant portion of the population.

The usage gap is also fueled by low digital literacy and lack of relevant local content. The report estimates that closing the usage gap in Africa could contribute an estimated US$3.5 trillion to the global economy by 2030, with 90% of that impact benefiting LMICs. However, bridging this gap requires significant investment in infrastructure—around us$418bn is needed to achieve universal mobile internet access.

In addition, nearly two-thirds of mobile internet users in Sub-Saharan Africa still rely on 3G smartphones or feature phones, limiting their ability to fully engage with digital services. The region’s infrastructure must evolve to offer affordable 4G and 5G connectivity, alongside efforts to improve digital skills.

John Giusti, chief regulatory officer at the GSMA, said, “Despite continued progress in expanding the reach of network infrastructure and in increasing mobile internet adoption, significant digital divides remain."

“Although most users access mobile internet daily, their activities are often limited to just one or two activities, even though many express a desire to do more. This highlights persistent barriers to enabling meaningful connectivity, preventing users from getting online and getting the full benefits of the mobile internet."  

Old Mutual Connect launches as a new MVNO on Cell C, enhancing mobile accessibility for South Africa's lower-income market. (Image source: Adobe Stock)

Old Mutual, a South African insurance giant, has introduced a Mobile Virtual Network Operator (MVNO) called Old Mutual Connect on Cell C's platform, coinciding with a surge in the MVNO sector

Clarence Nethengwe, the CEO designate of OM Bank, highlighted that this service is part of the company's Integrated Financial Services (IFS) strategy, aimed at offering tangible value-added services to its customers.

The new service aims to deliver competitive mobile options, targeting improved connectivity for the lower-income market. Nethengwe emphasised the importance of affordable data, stating, “Affordable data and reliable connectivity is critical for our customers in the mass market to fully participate in the mainstream economy. It is also an important enabler for our customers to interact with the rest of our propositions digitally.”

Operating on Cell C’s network, Old Mutual Connect will utilise a multi-operator core network agreement to ensure reliable, high-speed mobile services. This network benefits from existing partnerships with Vodacom and MTN, offering a broad coverage footprint.

Customers can obtain a SIM card for R5 (US$0.29) at any Old Mutual branch, with options to purchase data and airtime available through branches, partners, and digital channels.

In September 2024, Old Mutual announced plans to launch a bank by the first quarter of 2025, with regulatory approval from the Prudential Authority confirming the readiness of its systems. Clarence Nethengwe is set to take on the role of CEO-designate of the bank, effective November 1.

MVNO market growth

South Africa's MVNO market has seen substantial growth recently, with several new players entering over the past five years. MVNOs, which provide cellular services without owning network infrastructure, buy wholesale access from mobile network operators to serve their subscribers. By December 2023, the market had over 4.3 million MVNO SIMs, reflecting a 51% annual growth rate.

The market is projected to expand further, potentially reaching 10 million SIMs by December 2028. The anticipated entry of major retail brands could accelerate growth, possibly driving the total to 13.5 million SIMs. Old Mutual Connect joins other prominent operators like Capitec Connect, South Africa's largest MVNO with over one million active SIMs, and FNB Connect, which had 879,000 active SIMs in 2022 and aims to reach one million soon.