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African Telecom Industry – A Catalyst For Change

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President Rupiah Banda talks to workers at the Mobile Telecommunications mobile telephone assembly plant in Lusaka
President Rupiah Banda talks to workers at the Mobile Telecommunications mobile telephone assembly plant in Lusaka

By Kabukabu Kawanambulu Ikwueme

The rapid growth of the African telecom industry over the past few years, has remarkably transformed communication infrastructure on the continent. Just a decade ago, Africa’s telecom industry accounted for only 2% of the worlds phone lines. Fast forward to the 21st century and the continent is almost unrecognisable. Mobile phones are ubiquitous and if current trends are anything to go by, 2010 is the year in which the continent’s nascent but burgeoning mobile telecom industry receives a massive technological upgrade.

The coming world cup games in South Africa could give the industry a bigger boost as consumer demand rises further, with an increase in people accessing the internet via mobile phones. Recent figures show that the past five years has seen the use of mobile phones on the continent increase exponentially – the fastest in the world – with 38% growth in 2007, placing Africa ahead of the Middle-East which stands at 33%.

The launch of Africa’s first mobile phone assembly factory located in Lusaka – in August 2009 – is being viewed as a strategic move by entrepreneurs, to tap into the growing African telecom market . The establishment of M-Tech Mobile Telecommunications Limited in Zambia was hugely welcome and experts in the telecom industry predict that in 2010, we could see Middle-East and Indian-based telecommunications companies continue their penetration into Africa. Plans by the telecom company Zain Zambia, to spend more on upgrading existing equipment and introduce new technology in 2010, reflects a trend of continued growth and expansion in the telecoms industry.

As smart phones – using operating systems like Google’s Android – hit the shelves in the west, it is hoped that this technological platform will eventually become widely available in developing countries as well. With internet-enabled hand-sets already being used on the continent to access websites like Facebook and Flicker, people now feel more connected to the rest of the world. A study by Opera, a mobile software developer based in Norway, recently revealed that news sources such as CNN and BBC are among the most viewed sites in Zambia, Nigeria, Kenya and Ghana.

The success of the African telecom industry however, masks some disturbing realities about the living conditions most people have to endure. A study by the University of Sussex in England revealed recently that people in most developing countries were saving less because of high unemployment rates and are consequently living a hand to mouth existence. The poor state of both social and physical infrastructure in Africa continues to reduce productivity by at least 40%. There is growing sentiment that more needs to be done to enable the continent fully reap the benefits of technological advancements.

An entire generation has however, been transformed as technology slowly merges with culture. In Kenya for instance, a goat herder in a rural area can now negotiate the sale of his animals on a mobile phone. Continued technological development and the emergence of e-business could eventually decrease the importance of the size of an enterprise, as people promote and market their goods using e-business tools on mobile phones.

Africa does not have a Silicon Valley from which lots of companies are conquering the world with the latest software and hardware, but the increased use of mobile phones with their plethora of functions has empowered people and could close the digital divide between developed and developing countries.

6 COMMENTS

  1. The first mobile phone assembly plant in Africa opened in Zambia under the so-called useless administration of RB.

  2. This is a nice article.Indeed telecommunication has boomed in Africa.I remember my first ever cell phone a few years ago was the size of a brick( my brother called it a ghetto blaster) now we have seen several generations of cell phones emerge and now every Jim and Jack owns a cell phone and far much better than my “brick” or “ghetto blast”. It will be interesting to see how cell phones can be used to transform rural businesses or businesses in the low socio-economic bracket.

  3. The mobile phone assembling plant is already functional? I thought they are still building it. If that is the case, then its a good step to start with in 2010. Though i don’t agree with the article that the plant in Lusaka is the first to be established in Africa for mobile phones’ assembly. There has been many such a plant all over Africa ( Kenya, Rwanda, South Africa et.c) and most of them have already been closed down due to competition. The step taken by GRZ to increase tax on imported mobile phones is welcome – so as to make the newly established plant survive.

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