Report: AI, 5G Will Bridge 60% Connectivity Gap, Unlock $70bn GDP Growth in sub-Saharan Africa

Emma Okonji

GSMA, yesterday, launched the Mobile Economy sub-Saharan Africa 2024 Report, which highlighted opportunities in Artificial Intelligence (AI), Fifth Generation (5G), and satellite connectivity that would bridge a 60 per cent usage gap and unlock $170 billion in GDP by 2030.

According to the report, the mobile industry’s $140 billion contribution to GDP in 2023 is projected to reach $170 billion by 2030 if key connectivity barriers are addressed, adding that mobile technology is essential in supporting development goals across key sectors like healthcare, education, and finance, driving economic growth by expanding internet access and digital services.

The report highlights that 4G expansion is set to drive connectivity, projected to account for half of all connections by 2030. It however said a significant coverage gap remained, with 13 per cent of the population still unreached, and a 60 per cent usage gap affecting those who live within coverage areas but face barriers to get online, such as unaffordable devices, limited digital skills, or online safety concerns.
In addition to the connectivity challenges, the report explains that the region faces high operating costs, inflationary pressures, and energy price volatility.

Despite the obstacles, emerging trends such as generative AI and satellite partnerships present innovative solutions to bridge gaps across sectors. Broader API solutions, such as GSMA Open Gateway, which recently launched security APIs in South Africa, are poised to enhance digital security and simplify services as the initiatives expand regionally. Addressing these issues is essential to unlocking the socio-economic potential of mobile connectivity in sub-Saharan Africa, the report said.

Giving further findings of the report, Head of sub-Saharan Africa, GSMA, Angela Wamola, said: “Our findings this year reveal both the extraordinary potential and the challenges facing sub-Saharan Africa’s mobile ecosystem. 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.”

Addressing persistent usage gap, the report said mobile internet penetration in sub-Saharan Africa reached 27 per cent by the end of 2023, yet a substantial usage gap of 60 per cent remaind.
“The gap represents millions who live within network coverage but face barriers such as device affordability, digital skills deficits, and concerns around online security. Globally, 3.1 billion people, about 39 per cent of the global population, are impacted by the usage gap. The sub-Saharan Africa is the least connected region, with the largest usage gap worldwide,” the report said.

In the area of expansion of 4G coverage and early 5G growth, the report said: “The region’s 4G adoption is forecast to reach 50 per cent by 2030, overtaking 3G as the primary technology. Although 5G adoption remains in its early stages, it is projected to reach 17 per cent of total connections by 2030, primarily in South Africa, Nigeria, and Kenya.”

For the economic impact and infrastructure needs for 5G, the report added that by 2030, 5G alone would be expected to contribute $10 billion to the region’s economy, accounting for 6 per cent of the mobile sector’s total economic impact. The report emphasised the need for progressive spectrum policies, particularly the release of mid-band spectrum, to support long-term growth and equitable digital access. Additionally, 5G Fixed Wireless Access (FWA) is gaining traction as a primary broadband solution in countries such as Angola, South Africa, Nigeria, Kenya, Zambia, and Zimbabwe, addressing demand for high-speed connectivity in underserved areas, the report said.

The report advocated for a series of critical actions to ensure sustainable growth and digital inclusion, such as Affordability reforms, Revitalised Universal Service Funds (USFs), and Progressive Spectrum Policy.