"Mobile connectivity is a key driver of digital transformation and socioeconomic growth in Sub-Saharan Africa," according to GSMA's annual report on the state of the Sub-Saharan Africa's mobile economy. The report points out that "Governments and businesses are increasingly using 4G and 5G networks alongside technologies such as AI and IoT to enhance productivity and service delivery. Despite growing demand for mobile, a significant usage gap persists. This underscores the need for efforts by operators to address the barriers to mobile internet adoption, such as device affordability, online safety and digital skills."
The report's key findings include:
Persistent Usage Gap: Mobile internet penetration in Sub-Saharan Africa reached 27 percent by the end of 2023, yet a substantial usage gap of 60 percent remains. This 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 – 39 percent of the global population – are impacted by the usage gap. Sub-Saharan Africa is the least connected region, with the largest usage gap worldwide.
Expanding 4G Coverage and Early 5G Growth: The region's 4G adoption is forecast to reach 50 percent by 2030, overtaking 3G as the primary technology. Although 5G adoption remains in its early stages, it is projected to reach 17 percent of total connections by 2030, primarily in South Africa, Nigeria, and Kenya.
Economic Impact and Infrastructure Needs for 5G: By 2030, 5G alone is expected to contribute $10 billion to the region's economy, accounting for 6 percent of the mobile sector's total economic impact. GSMA's report emphasizes 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.
Strengthening Digital Security: South Africa became the first country in Sub-Saharan Africa to implement GSMA Open Gateway APIs, focusing on fraud prevention and security with Number Verification and SIM Swap APIs. This initiative is part of broader efforts across the region to improve digital security, particularly within digital banking.
Generative AI Potential: Generative AI is expected to contribute up to $1.5 trillion to Africa's economy by 2030, with mobile operators increasingly using AI for customer engagement and network optimization. MTN and Vodacom, for instance, are deploying AI-powered initiatives to enhance operational efficiency, although the region faces a shortage of skilled AI professionals.
Through this report, the GSMA, a UK-based organization that aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, advocates for a series of critical actions to ensure sustainable growth and digital inclusion:
Affordability Reforms: High costs remain a barrier to mobile access, with the report calling for reduced taxes on the sector, such as lowering import duties on handsets and cutting activation fees, to make services affordable and accessible for all.
Revitalized Universal Service Funds (USFs): Many USFs in Sub-Saharan Africa are underperforming, often hindered by inefficiencies. The report calls for reforms to improve transparency, streamline disbursements, and direct funds toward impactful initiatives, such as digital literacy programs in underserved areas.
Progressive Spectrum Policy: With increasing data demands, the report urges governments to release additional spectrum, particularly in the 6 GHz band, and to adopt policies that ensure efficient, affordable, and environmentally sustainable mobile network expansion.
Infographic: GSMA Intelligence
With respect the mobile technology's contributions to the UN Sustainable Development Goals (SDGs), the report says the industry "contributes to SDG 4, which seeks to ensure inclusive and equitable quality education, and promote lifelong learning opportunities for all. Digital transformation is making learning resources more accessible, enhancing educational outcomes and supporting continuous learning. By bridging gaps in education access and improving the quality of education, mobile technology is fostering a more inclusive society."
What investment or commercial opportunities are you seeing in Sub-Sahara's mobile technology industry? What are your recommendations for closing the digital divide?
Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.
In a press release announcing the publication of a report focusing on the drivers behind the digital transformation of Kenya's economy, the GSMA, a UK-based organization that aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, said: "Kenya's digital economy will contribute KSH 662 billion to GDP by 2028. This growth, driven by strategic policy reforms, will accelerate digitalization in critical sectors such as agriculture, manufacturing, transport, and trade. In addition to these advancements, the report forecasts the creation of 300,000 new jobs and an increase in tax revenues by KSH 150 billion."
What is more, "To sustain its economic momentum, diversify the economy, boost productivity, and create high-quality jobs – particularly for young and rural populations – Kenya is focusing on digitalization as a key driver of economic growth, government revenue, and socio-economic development."
Below are the report's key messages:
"The digitalization of the economy is a key driver of economic growth and government revenue, as well as supporting socio-economic development and offering a path towards shared prosperity. By leveraging digitalization opportunities, the Government of Kenya can achieve sustainable economic growth and structural change."
"Adoption of digital technologies across both public and private sectors has been observed to positively impact economic growth. It increases productivity in agriculture, improves access to global value chains (GVCs) and improves the efficiency and transparency of government and public services. Moreover, access to emerging technologies such as mobile money, Artificial Intelligence (AI) and cloud computing are desirable as drivers of digital and financial inclusion which in turn supports human development."
"This study identifies opportunities and quantifies the economic value of adopting digital technologies across selected sectors of Kenya's economy. It identifies how these opportunities can be unlocked through policy reforms, particularly focusing on the key role that the mobile telecoms sector plays in supporting the process of digitalization."
"Kenya is a regional leader in mobile connectivity and Mobile Financial Services (MFS). It pioneered the use of mobile money, making huge strides in financial inclusion of the unbanked, and has retained its position as a global leader in this area. Further extending its reach as the enabler of electronic payments across the digital economy, as well as traditional sectors, can propel digitalization and growth for many more Kenyans and achieve increased resilience and revenue for the Government."
The report also "identifies a series of policy recommendations that, if implemented, will close the internet usage gap from the current level of over 64% of the population to 51% in 2028. This would result in 49% of the population of Kenya being connected to the Internet, equivalent to over 10 million additional people." The four priority policy reforms are:
1. Tax restructuring in the telecommunication industry to purposefully drive usage.
2. Implementing policies and programs to improve device affordability.
3. Ensuring a sustainable and predictable investment environment. This includes:
Supporting financial sustainability through tax deductions against spectrum payments,
Reducing the cost of energy to power infrastructure,
Adopting a favorable spectrum pricing model, and
Accelerating the license renewal process.
4. Supporting productive use of digital technologies by businesses across economic sectors, with targeted policies to improve digital skills and human capital, support MSMEs and start-ups and prioritize context-appropriate technologies and local needs.
The report's authors importantly point out that "These policy reforms have the potential to make a significant contribution to Kenya's economic objectives, including economic transformation across important sectors such as agriculture and manufacturing." The potential macroeconomic impacts are summarized in the image below:
Kenya has firmly positioned itself as a leader in mobile financial services and digital innovation. Following the development of information and communications technology sector in Sub-Saharan Africa for over 30 years, I appreciate how GSMA's study outlines the economic benefits of expanding digital adoption and provides a roadmap for maximizing these gains through targeted policy actions.
What are your recommendations for how Kenya can drive economic growth through digitalization?
Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.
In my experience working in emerging and developing countries, many people mistakenly assume that if an individual is connected to the mobile internet, then they are able to utilize various life-enhancing applications. However, there is a stark difference between having access to the applications and the knowledge to make full use of these digital tools.
According to a report published by GSMA, "Mobile networks are the primary – and often only – channel for people to connect to the internet, especially in low-and-middle income countries (LMICs)." What is more, "Despite the rapid growth in mobile internet adoption in recent years, there remains a significant usage gap in LMICs: 48% of the population across LMICs still do not use the mobile internet. Of this group, 42% live within the footprint of a mobile broadband network but are not using the internet – this is known as the 'usage gap.' In Sierra Leone, the usage gap is significantly higher at 77%. Among people in this group, a lack of digital skills is one of the most significant barriers preventing them from adopting the mobile internet."
To address the digital skills barrier, the UK-based organization, which aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, says it "developed the Mobile Internet Skills Training Toolkit (MISTT), a free-to-use set of resources covering the fundamentals of the mobile internet, popular apps and use cases." The report also points out that "In order to gather evidence on the efficacy of the MISTT and identify potential areas for further improvements, the GSMA evaluated a digital skills training campaign conducted by Orange Sierra Leone, using MISTT. Specifically, the evaluation aimed to understand how effectively the MISTT delivers improved digital skills, what the socioeconomic impact is on trainees, and what improvements are needed to better reach the underserved."
Below are the report's key findings:
"MISTT improved digital skills for the majority of trainees interviewed in Sierra Leone, by reducing the functional barriers to mobile internet use, boosting learners' self-confidence and sense of independence and increasing the frequency of internet use by the trainees."
"There are indications that MISTT has had a positive socio-economic impact in Sierra Leone. This was visible in two main ways: enhancing trainees' potential to conduct business online has improved their prospects and income; and trainees have acquired greater knowledge and education across diverse topics."
"The impact of MISTT training on business was most observable for women, as they experienced the greatest changes to their digital skills confidence levels, as well as day-to-day life benefits, including being able to do business online while at home. Women were also more likely to enjoy the spill-over effects of the training, as their spouses passed on what they had learned."
"Incentives are a critical part of digital skills training – both for potential customers and trainers. The effectiveness of digital skills training can be greatly enhanced by providing appropriate incentives to potential trainees and their trainers. For trainers, this might involve providing financial incentives for the delivery of training that drives digital inclusion. For customers, this involves emphasizing how the mobile internet can be valuable to their lives and making them aware of any incentives, such as free mobile data and lunch, that are available to reward participation at in-person training events."
"Face-to-face training provides numerous advantages for the underserved. Face-to-face or in-person training allows a more tailored learning experience with opportunities for practical application by learners. For example, in-person training enabled trainers to spend time answering trainees' questions and providing tailored support on some of the challenges that they encounter. This is most important for learners with lower literacy and education levels, as well as those in rural areas. However, while effective, in-person training may be more costly for implementers and more difficult to scale."
"Digital skills training needs to consider the specific barriers that underserved users face. Issues, such as lower levels of education and a lack of basic digital skills and confidence, can impact on people's ability to access and participate in training activities. The evaluation also highlights the importance of adopting a gender lens to the delivery and expansion of digital skills training to ensure it is reaching women. There is a need to consider who might be excluded or disadvantaged from the proposed delivery approach, as well as ensuring the location, timing and content of the training, for instance, will meet their needs."
"To enhance the scalability and viability of MISTT digital skills training, implementers can explore other approaches to delivering digital skills beyond in-person channels to understand their effectiveness. Remote channels, for example videos, voice messaging and radio broadcasts, may provide an effective way for delivering digital skills training and/or improving training awareness in a cost-effective manner. Both in-person and remote channels have relative advantages and disadvantages. While in-person channels may be more effective at reaching certain population segments, remote channels provide unique benefits to implementers as they are easier to scale and can be iterated or updated more easily than face-to-face channels. Depending on the training objectives, both digital and in-person channels can be used simultaneously to complement the other."
"Combining digital skills training with other events or product pitches can extend the reach of digital skills training for the underserved and offer benefits to implementers. Delivering digital skills training alongside other activities, such as entertainment events or with the sale of a product or service, can encourage wider participation by reaching people who may be reluctant to attend a formal training event, for example, or linking it to something that is seen as relevant to them. Nonetheless, it's important to bear in mind the needs of underserved groups while designing these activities. For example, for women, the idea of 'standing in the street watching entertainment' may not feel culturally appropriate, as many are worried about theft or appearing to be lazy people who have nothing important to do."
I appreciate how GSMA's report "highlights the key learnings from the evaluation of the MISTT digital skills training initiative implemented by Orange Sierra Leone. It provides key insights on the effectiveness of MISTT in improving digital skills acquisition among different underserved groups, as well as the socio-economic impact of the training." There is also value in how the report "identifies considerations for improving the effectiveness of digital skills training in reaching underserved groups." Importantly, however, the GSMA notes that "the insights and recommendations in this report do not represent our comprehensive view of how to implement MISTT. Rather, they are recommendations specifically arising from this evaluation, and can be a basis for further research and trial. This complements our existing research on digital skills and evaluation of MISTT implementations."
What are your recommendations on how to promote digital literacy and reduce the digital usage gap in LMICs?
Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.
"The mobile industry continues to underpin the rapid digital transformation in Asia Pacific, with advanced mobile networks enabling innovative use cases for consumers and enterprises," according to GSMA's annual report on the state of the mobile industry in the Asia Pacific region. The UK-based organization, which aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, adds: "The role of mobile infrastructure and services will become even more vital to the way society functions as governments increasingly use digital technologies to tackle some of the most pressing social and economic challenges."
The report points out that "By the end of 2023, 1.8 billion people in Asia Pacific (63% of the population) subscribed to a mobile service." What is more, Growth in mobile internet penetration has been remarkable. At the end of 2023, 51% of the region's population used mobile internet, equating to just over 1.4 billion users – almost triple the figure a decade earlier. However, large swathes of the population across the region still remain unconnected, most of them within the usage gap." The GSMA importantly notes that "Addressing the usage gap is crucial to closing the digital divide and enabling life-enhancing applications around finance, health and education."
The report's key findings include:
5G continues to rapidly grow, but 4G will remain the dominant technology for the foreseeable future
By the end of 2030, Asia Pacific countries will be on both ends of the global 5G spectrum
Mobile data traffic in Asia Pacific will quadruple between 2023 and 2030
Licensed cellular IoT connections in Asia Pacific will reach 270 million by 2030
By 2030, mobile revenues will reach $227 billion in Asia Pacific
At the end of the decade, mobile's economic contribution will reach $1 trillion
The fiscal contribution of the mobile ecosystem reached $90 billion in 2023 and 5G will add almost $130 billion to the Asia Pacific economy in 2030
Satellites and non-terrestrial networks can help reduce the connectivity gap, by bringing communications to the region's challenging terrains – including archipelagos, rainforests, deserts, and mountain ranges – where traditional infrastructure is expensive and difficult to build.
Operators across the Asia Pacific region are harnessing the power of generative AI (genAI) to drive internal transformations and seize new revenue streams through AI investment.
I appreciate how the GSMA explains that "The impact of mobile connectivity is evidenced by its contribution to the economy." For example, "In 2023, mobile technologies and services generated 5.3% of Asia Pacific's GDP, a contribution that amounted to $880 billion of economic value added, and supported around 13 million jobs across the region."
With respect to the mobile industry's impact on the UN Sustainable Development Goals (SDGs) in the region, the GSMA says the mobile industry continues to achieve its impact on SDGs "driven by the increased reach of mobile networks and growing take-up of mobile internet services. SDG 9: Industry, Innovation and Infrastructure, SDG 6: Clean Water and Sanitation and SDG 4: Quality Education were the most improved SDGs in the region between 2015 and 2022. The growing use and adoption of smartphones and mobile internet is contributing to mobile's impact on the SDGs."
Infographic: GSMA Intelligence
What do you think of the report's findings? What localized mobile services are you developing for the Asia Pacific region?
Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.
In its annual report that explores the latest data on the mobile gender gap, the key barriers preventing women's equal access to and use of mobile, and what is needed to close the mobile internet gender gap, the GSMA says "Mobile phones and mobile internet can be life changing, enabling people to stay connected to each other and access information and services from anywhere, including health care, education, e-commerce, financial services and income generating opportunities. In 2023, the world was more connected than ever before with more than 3.7 billion people in low- and middle-income countries (LMICs) accessing the internet on a mobile phone." Moreover, according to the report, "Mobile is the primary way people are accessing the internet in LMICs, accounting for 84% of broadband connections in 2023. This is especially true for the underserved, including women and those who live in rural areas. In 10 of the 12 countries surveyed for this report, women who use the internet are more likely than men to access it exclusively on a mobile phone."
The report points out that "Across LMICs, 83% of women now own a mobile phone, 60% own a smartphone and 66% use mobile internet. However, mobile access and use remain unequal. Women are still less likely than men to have access to mobile phones, mobile money, mobile internet and other mobile services." Disappointingly, "Women are also less likely than men to have equal use of these services, particularly the most underserved women, including those who have low literacy levels, low incomes, live in a rural area or have a disability."
The GSMA says its "latest data shows that the mobile internet gender gap narrowed from 19% in 2022 to 15% in 2023 due to women adopting mobile internet at a faster rate than men. This brings us back to where we were in 2020, but it is not yet clear whether this trend will continue. It is essential for women, and societies more broadly, that this momentum continues and the mobile gender gap continues to close."
What is more, "Addressing the mobile gender gap provides significant social and commercial benefits to individuals, societies and economies. Connectivity is vital to achieving the United Nations Sustainable Development Goals (SDGs), including those related to health, education and financial inclusion. GSMA analysis has estimated that closing the gender gap in mobile ownership and use in LMICs over an eight-year period could deliver $230 billion in additional revenue to the mobile industry. The Global Digital Inclusion Partnership estimates that 32 LMICs are on track to lose more than USD 500 billion in GDP in the next five years due to the digital gender divide."
The report importantly explains: "We know that once women start using mobile phones and mobile internet, they usually see the benefits and it improves their lives to a similar degree as men. In 2022, we found that across the 12 survey countries, most people who use mobile internet believe it has had a positive impact on their lives and use it every day, with little difference by gender."
I concur with the following assertion made by the report's authors: "Ensuring that women can access and use mobile is essential, especially in our increasingly digital world. Mobile can enable women to be more resilient in the face of economic, climate and political crises and shocks. More attention, effort and investment are needed to close the mobile internet gender gap – a goal we must continue to strive to meet so that women, their communities and society can reap the full, life-changing benefits of mobile."
The UK-based organization that aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, presents the following recommendations for all stakeholders to close the mobile gender gap:
Ensure there is a focus on gender equality and reaching women at an organizational and policy level through senior leaders championing the issue and setting specific gender equity targets.
Understand the mobile gender gap by improving the quality and availability of gender-disaggregated data, and understanding women's needs and the barriers they face to mobile ownership and use.
Explicitly address women's needs, circumstances and challenges in the design and implementation of mobile-related products, services, interventions and policies. This includes addressing the barriers women face related to affordability, knowledge and digital skills, safety and security, access and the availability of relevant content, products and services.
Collaborate and partner with different stakeholders to address the mobile gender gap. Targeted intervention is needed from industry, policymakers, the development community and other stakeholders to ensure that women are no longer left behind.
While it is encouraging mobile internet adoption is accelerating among women in LMICs, further action is required to close the gender gap.
Do you agree with GSMA's recommendations for stakeholders to close the mobile gender gap? What would you add?
Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.
The previous posts in the forum addressed the economic benefit 5G will bring to the Sub-Saharan Africa economy in the near future and the challenges and opportunities for scaling e-commerce adoption by small businesses in Africa. While 5G is expanding rapidly in low- and middle-income countries and smartphone adoption is projected to increase in the coming years, which will allow people to connect to critical services such as education, healthcare, and financial services, and provide income-generating opportunities, significant digital divides exists. Not only do these digital divides inhibit entrepreneurs from developing innovative localized technology solutions, but they prevent investors from providing essential financial capital and advisory support.
Therefore, it was with great interest to read GSMA's State of Mobile Internet Connectivity 2023 that "considers the importance of not just mobile broadband coverage but 'meaningful connectivity' – users having a safe, satisfying, enriching and productive online experience that is affordable. This requires an understanding of the key barriers and enablers for meaningful connectivity, including infrastructure, affordability, skills, safety and security, and relevant content and services. Each of these is considered in this report."
Below are the report's key findings (copied in verbatim):
Mobile internet adoption continues to increase, with 57% of the global population (4.6 billion people) now using mobile internet – but the growth rate at which people are adopting mobile internet slowed in 2022. Only 200 million people started using mobile internet in 2022, compared to 300 million in 2021 and in 2020. Just over three quarters of the growth in mobile internet adoption in 2022 came from low- and middle-income countries (LMICs), where 95% of the unconnected population live. In least developed countries (LDCs), almost 30 million additional people started using mobile internet in 2022, meaning one in four people in LDCs are using mobile internet.
Mobile broadband coverage has remained relatively unchanged, with 95% of the global population living within the footprint of a mobile broadband network. With only marginal growth in coverage in 2022, the coverage gap – those living in areas without mobile broadband coverage – stands at almost 400 million people (5% of the global population). The remaining uncovered communities, which are predominantly rural, poor and sparsely populated, are the most challenging to reach.
Most of those not using mobile internet live in areas covered by mobile broadband. In 2022, 3 billion people (38% of the global population) lived in areas covered by mobile internet but did not use it. With mobile internet adoption outpacing network expansion, this usage gap has been shrinking slowly in recent years, from 40% in 2021 to 38% in 2022. However, the usage gap remains almost eight times the size of the coverage gap. Considering only adults aged 18 and above, 23% are still not using mobile internet despite being covered by a mobile broadband network. The majority of those living within mobile broadband coverage but not using it do not yet own a mobile phone.
Connectivity varies significantly between and within regions and countries, with 95% of the unconnected living in LMICs. Sub-Saharan Africa remains the region with the largest coverage and usage gaps. In LMICs, adults in rural areas are still 29% less likely to use mobile internet than those in urban areas, while women are 19% less likely to use mobile internet than men. In LDCs, only 25% of the population use mobile internet, compared to 52% across LMICs overall and 85% in high-income countries (HICs).
The majority of the global population now own a smartphone, which is how most people are accessing mobile internet. At the end of 2022, 54% of the global population (4.3 billion people) owned a smartphone. Of the 4.6 billion people using mobile internet, almost 4 billion do so using a smartphone (49% of the global population) and around 600 million people do so using a feature phone (8% of the global population). There are also 350 million people who own a smartphone but do not use mobile internet.
4G and 5G continue to expand, but 2G and 3G remain important sources of coverage in LMICs. While the overall broadband coverage gap has remained broadly unchanged since 2021, the deployment of 4G and 5G continues to expand. Globally, 90% of the population is now covered by 4G, and 32% by 5G (up from 25% in 2021). Almost three quarters of the 5G network expansion in 2022 was in Asia-Pacific, and there was particularly strong growth in 4G network expansion in Sub-Saharan Africa. However, most mobile operators will continue to maintain 2G and 3G networks for the foreseeable future, with a significant portion of users continuing to use these networks, particularly in LMICs.
Data usage and network quality continue to increase but significant differences remain between HICs and LMICs. Monthly global mobile data traffic per user increased from 8.4 GB in 2021 to 11.3 GB in 2022 – the largest absolute increase since it was first tracked in 2015. Network quality improved across all regions, driven by improved networks and consumers migrating to 4G or 5G. For the first time, all regions now have average download speeds of at least 10 Mbps, while the global average download speed increased from 27 Mbps to 34 Mbps. HICs record download speeds four times greater than those in LMICs.
Awareness of mobile internet continues to grow but has slowed significantly since 2019. In nine of the 12 countries surveyed, more than 80% of the population was aware of mobile internet in 2022. However, women and those living in rural areas remain less likely to be aware of mobile internet, and lack of awareness remains a critical initial barrier to mobile internet adoption in some countries.
Affordability and skills remain the two greatest barriers to mobile internet adoption and use. Across the countries surveyed, for mobile users who are aware of mobile internet but don’t use it, the top reported barriers to adopting it remain affordability (particularly of handsets) and literacy/digital skills. Safety & security concerns and lack of perceived relevance were reported less often but are also important barriers. For example, among smartphone owners, lack of perceived relevance is often cited as a top barrier to mobile internet adoption in several countries.
Affordability of devices and data continues to disproportionately impact the underserved. Across LMICs, affordability of an entry-level, internet-enabled handset remained relatively unchanged, while affordability of data continues to improve across most regions. However, while the affordability of an entry-level device across all LMICs is equivalent to 16% of average monthly income, this increases to 40% for the poorest 40% of the population and 55% for the poorest 20%. Across LMICs, it is equivalent to 24% of average monthly income for women, compared to 13% for men.
GSMA's report also points out that barriers to digital inclusion are complex and interconnected:
Knowledge and skills: "Improving digital skills and literacy, as well as driving awareness and understanding of mobile internet and its benefits, is critical to increasing digital inclusion. Digital skills initiatives should focus on users' needs and circumstances."
Affordability of handsets and data: "Approaches to improve affordability should include efforts to lower the cost of internet-enabled handsets and data through innovative data pricing strategies and handset-financing options, in addition to adopting tax policies and providing targeted subsidies that promote the uptake of internet-enabled devices and data services."
Safety and security: "Concerns about safety and security, including online harassment or cyberbullying, misinformation, disinformation and fraud, are preventing people going online and having a positive internet experience. Appropriate mechanisms and frameworks that recognize these online risks should be put in place to help build consumer trust. Stakeholders should provide users, especially women, with the tools to increase their knowledge and skills to mitigate online risks."
Relevance: "Local digital ecosystems in many LMICs remain underdeveloped and under-resourced. Investment in local digital ecosystems and an enabling policy environment can accelerate growth in local content, services and applications that meet the needs of people and in their own language."
Access: "Using the internet depends on enablers such as electricity, formal identification, sales agents and accessibility features. Stakeholders can increase mobile internet adoption by focusing on, for example, facilitating inclusive and transparent registration processes for mobile, and making services, sales channels and training facilities accessible to underserved groups, such as women and persons with disabilities, alongside improving accessibility features."
I appreciate how the report addresses the importance of having reliable mobile connectivity for people to access essential services. As the GSMA points out, "In recent years, mobile operators and governments worldwide have been working on advancing digital inclusion, recognizing its transformative potential for societies. While there have been notable achievements and mobile internet adoption continues to grow, this report shows that progress has slowed. Furthermore, with an ongoing cost-of-living crisis, many are now further at risk of remaining unconnected."
What are your recommendations on how to bridge the digital divide?
Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.
In its latest report that provides insights on the state of the mobile economy worldwide, the GSMA says "Mobile connectivity continues to be a lifeline for society, helping the most vulnerable people in areas affected by conflict and natural disasters to stay connected. It is also enabling advanced connectivity capabilities needed by verticals to innovate amid diverse political, social and macroeconomic headwinds."
The UK-based organization representing the interests of mobile operators worldwide adds that "By the end of 2022, over 5.4 billion people globally subscribed to a mobile service, including 4.4 billion people who also used the mobile internet." The report notes that "The mobile internet usage gap has narrowed markedly in the last five years – from 50% in 2017 to 41% in 2022 on average – but still remains significant and demands urgent attention from all stakeholders."
What is more, "In 2022, mobile technologies and services generated 5% of global GDP, a contribution that amounted to $5.2 trillion of economic value added, and supported 28 million jobs across the wider mobile ecosystem. 5G will underpin future mobile innovation and services, building on ongoing deployments and adoption. 5G adoption will reach 17% this year, rising to 54% (equivalent to 5.3 billion connections) by 2030. The technology will add almost $1 trillion to the global economy in 2030, with benefits spread across all industries."
Key trends shaping the mobile ecosystem include:
5G consumer monetization comes into focus: "Throughout 2023, some 30 new markets will launch 5G services; importantly, many of these will be developing markets across Africa and Asia, making 5G a truly global trend. As 5G adoption continues to scale, the monetization imperative will grow."
Private 5G builds momentum: "Private wireless solutions are back in vogue, as 5G's enhanced capabilities allow deployments to move beyond low-profile niche offerings."
Mobile industry shifts towards circularity: "Across the telecoms ecosystem, sustainability has extended beyond corporate social responsibility to become a core strategic priority. Industry players are increasingly adopting a model of production, service offering and consumption that involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products for as long as possible."
The metaverse continues to gain traction: "Momentum for the metaverse continues to grow, alongside advancements in enabling technologies like 5G, AI and wearables. The growing interest from key stakeholders and ecosystem players has led to the emergence of important building blocks for the advancement of the metaverse, notably content and applications, standards and devices, which will be at the forefront of activities in 2023."
Fintech presents opportunities for mobile industry players: "Fintech has transformed the way financial services cater to consumers and businesses alike. Although investor sentiments fell sharply in 2022 after record funding the previous year, the fundamentals of growth – including high demand, digital-centric lifestyles and enabling regulations – remain strong."
The report also highlights the following statistics:
There were 5.4 billon unique mobile subscribers in 2022, rising to 6.3 billion by 2030;
Globally, there were 4.4 billion mobile internet users in 2022, equivalent to 55% penetration;
5G will overtake 4G in 2029 to become the dominant mobile technology by the end of this decade;
5G adoption will be over 85% in the top 5G markets by 2030, led by the six Gulf Cooperation Council states (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates), developed Asia Pacific, and North America;
There will be 9 billion smartphone connections by 2030, equivalent to 92% of total connections;
Globally, smartphone data traffic will rise more than threefold in the period to 2028, with the biggest users in North America and Northeast Asia;
The total number of licensed cellular IoT connections will double to 5.3 billion by 2030, with Greater China accounting for two-thirds;
Revenue growth is expected to remain in positive territory in both developed and developing regions for the period to 2030;
At the end of the decade, mobile's economic contribution will surpass $6 trillion; and
The fiscal contribution of the mobile ecosystem reached $530 billion in 2022.
Infographic: GSMA
As for the mobile industry's impact on the 17 UN Sustainable Development Goals (SDGs), the GSMA explains that "There are now 11 SDGs where mobile's contribution is over 50, compared to six SDGs in 2020 and none in 2015." Furthermore, "The mobile industry continues to achieve its highest impact on SDG 9: Industry, Innovation and Infrastructure, driven by the reach of mobile networks and take-up of mobile internet services."
The report encouragingly adds that "The biggest improvements were recorded in the industry's contribution to SDG 1: No Poverty, SDG 2: Zero Hunger and SDG 4: Quality Education. This is due to the increasing proportion of people using mobile for activities such as accessing government services, applying and searching for jobs, and obtaining educational information for themselves or their children." The GSMA also notes that there was "an improvement in the affordability of mobile data and devices. This comes after affordability worsened in 2020 because of the decline in per capita income due to the Covid-19 pandemic."
What aspects of the report did you find of particular interest?
Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.
"At the end of 2021, the number of mobile internet users in Asia Pacific exceeded 1.2 billion, reflecting a penetration rate of just under 45% of the population," the GSMA notes in its annual report on the state of mobile economy in the Asia Pacific region. "This means that more than half of the population live in areas covered by a mobile broadband network but do not yet subscribe to a mobile internet service (usage gap)."
The UK-based organization, which represents the interests of mobile operators worldwide, adds that "The main reasons for the usage gap include the lack of digital skills (especially among older populations), lack of affordability among low-income households and online safety concerns among minority and vulnerable population groups. Addressing the usage gap for these key groups will extend the benefits of the internet and digital technology to more people in society. This requires concerted efforts by a broad range of stakeholders working together with mobile operators and other ecosystem players, such as device manufacturers and digital content creators."
The report's other key findings include:
96 percent of the population of Asia Pacific are covered by mobile broadband networks
By 2025 there will be 400 million 5G connections across the region – just over 14 percent of the population
$770 billion of economic value added by the mobile industry in 2021, approximately five percent of the GDP in the region
Security and sustainability move up the agenda for operators
Policymakers and regulators can fuel growth and innovation by finding the proper balance in the regulatory environment to support mobile network deployment and operations.
In addition to providing significant economic value to the region's economy, "The mobile industry continues to deliver social impact across Asia Pacific, primarily by providing the connectivity that enables the growth of small businesses and digital transformation of enterprises, and granting access to life-enhancing services and tools for citizens," the report explains. "Mobile money is one example, with adoption scaling rapidly in parts of Asia Pacific as operators support the region’s shift to digital payments."
The report also mentions that "The metaverse ecosystem is growing in many countries around the world, including in Asia Pacific. This is demonstrated by the interest of public agencies and private enterprises in establishing a presence in the metaverse and actively utilizing the platform in their engagement with customers and other stakeholders." For example, "South Korea plans to spend at least $186.7 million to create its metaverse ecosystem, as part of the country's Digital New Deal."
As highlighted in the image on right, the GSMA highlights how "Other governments in the Asia Pacific region, both at national and provincial levels, have outlined plans to harness the potential of the metaverse to increase the efficiency and quality of public services, as well as improve collaboration between local and national government agencies. This will be crucial to the development of the broader metaverse ecosystem, including for content creators and telecoms operators."
On the topic of security and sustainability, the report points out that "Security is the top priority for network transformation strategies among operators in Asia Pacific. This is not surprising given the backdrop of rising security threats to telecoms networks and, increasingly, to end users." Using Thailand as an example, the GSMA says 56 percent "of cyber threats in 2021 reportedly occurred via vulnerabilities in mobile devices."
The report also notes that "Operators across the region are also accelerating the shift to more sustainable operations, given the demand for a greater focus on energy efficiency from key stakeholders, including shareholders and customers. The industry is addressing the challenge through a comprehensive set of actions, such as the use of solar and improving the energy efficiency of networks.
As for creating policies to facilitate digital innovation, the GSMA asserts that "As society now moves towards a 'new normal' post pandemic, mobile connectivity will be central to the development of new and innovative technological solutions to today's problems. As 5G network deployments continue, 5G's ability to support next-generation offerings (such as cloud services, AI, IoT and edge computing) will drive digital economic growth and innovation."
Moreover, I support GSMA's assertion that "Policymakers and regulators can fuel growth and innovation by finding the proper balance in the regulatory environment to support mobile network deployment and operations." The organization says policymakers should also take steps to:
establish a forward-looking regulatory regime that supports the financial sustainability of the industry and provides non-discriminatory conditions to drive new innovations from large companies and SMEs
adopt policies that enable the building and deployment of infrastructure to support future networks accessible to all
create and maintain a safe and trustworthy online environment to protect users from threats
ensure that available spectrum serves the future demand for connectivity.
"These steps have the potential to set the proper foundation to support future economic growth, societal development and technological innovation."
Infographic: GSMA
Despite some near-term geopolitical and socioeconomic risks, I remain bullish about Asia Pacific's mobile economy. How are you positioning your business to capitalize on the region's growing mobile market?
Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.
"In Sub-Saharan Africa, women are 13 percent less likely than men to own a mobile phone; while 75 percent of women own a mobile, 74 million remain unconnected," says a report published by the GSMA. What is more, "In low- and middle-income countries (LMICs), where people are less likely to have formal bank accounts, mobile money is critical to facilitating widespread financial inclusion. ... While wider coverage and mobile ownership is making mobile money more accessible and relevant in people's everyday lives, a persistent gender gap is leaving women behind."
The GSMA explains that its "report focuses on the mobile money user journey in Ghana, highlighting the impact of COVID-19 on mobile money usage for men and women and the barriers to greater usage, with a specific focus on women entrepreneurs." The report's findings "highlight that beyond the high level numbers, women entrepreneurs lag behind in their awareness and usage of the non-core mobile money services in Ghana, which could add value to their businesses."
Below are the report's key findings:
The COVID-19 pandemic has accelerated the adoption of mobile money services among men and women in Ghana.
Mobile money is transitioning from an everyday cash replacement to a true banking alternative, but women entrepreneurs tend to use a narrower range of services than men.
Most male and female mobile money users anticipate that they will use mobile money as often, if not more, in a post-COVID world.
There are opportunities to increase awareness and use of mobile money services beyond payments, particularly among women entrepreneurs.
Women, including entrepreneurs, need more support from others to learn about and use mobile money.
Sustaining mobile money usage among new male and female users who signed up during the COVID-19 pandemic will require overcoming some additional barriers.
The GSMA points out that "Ghana is one of the most mature mobile money markets in the world and, despite having relatively low levels of gender equality, progressive policy and regulatory reforms have improved financial inclusion for men and women since the COVID-19 pandemic." However, as the findings in the report highlight, "that beyond the high level numbers, women entrepreneurs lag behind in their awareness and usage of the non-core mobile money services in Ghana, which could add value to their businesses."
The report importantly adds: "Users who adopted mobile money during the pandemic are less likely than longer term users to be aware of, and use, the full range of services available to them. Since they depend more heavily on agents and family to use their account and are less likely to handle transactions themselves, these users will need additional, on-going support."
To help provide users with on-going support, the report presents the following recommendations:
"As life returns to normal, ensure that men and women who signed up for mobile money during the COVID-19 pandemic have the knowledge and skills they need to continue using it. This group currently lags behind longer term users in terms of knowledge and use of mobile money. As Ghana starts to recover from the pandemic, it is crucial that new users are given clear and accurate information on the benefits of using mobile money longer term. This will help ensure that usage expands and becomes entrenched in day-to-day life, not just during the COVID-19 pandemic.
"Drive usage by increasing women's awareness of the range of mobile money services available. While there is almost no gender gap in account ownership in Ghana, women use a narrower range of mobile money services than men. It is clear that the experiences of men and women differ. For entrepreneurs, this is especially evident in the awareness of non-core mobile money services. Lower awareness is mirrored by lower usage – increasing knowledge through marketing and other approaches aimed at women and women entrepreneurs is likely to lead to greater uptake of a wider selection of mobile money services.
"Improve women's understanding of mobile money to reduce their reliance on others. Women, including women entrepreneurs, are significantly more likely than men to rely on others when learning to use mobile money. Without concerted efforts to reduce women’s reliance on others, this is likely to limit the way they engage with the service, including the range of services they use and the frequency of usage. More needs to be done to provide training resources to women signing up to mobile money to ensure the information they receive is comprehensive and correct. For example, mobile money providers could incentivize agents to provide hands-on support to women to demonstrate how the service works and improve their confidence in using it. Supporting women to use the full range of mobile money services independently is likely to deliver more substantial benefits to women, and women entrepreneurs in particular, as well as higher revenues for the mobile industry."
What are you recommendations for improving women's use of mobile money in Ghana?
Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.
According to a report published by the GSMA, "Owning an internet-enabled handset can be life changing. Yet, for many living in low- and middle-income countries (LMICs), they are still unaffordable. For the 3.4 billion people who live in areas with mobile broadband coverage but are not using mobile internet, affordability is a key barrier."
The GSMA explains that its "report provides an overview of approaches and business models that are improving the affordability of handsets for various underserved populations in LMICs. It explores some of the nuances among these groups, considerations for meeting their different needs and variations between markets in Sub-Saharan Africa and South Asia." Moreover, the report "also provides practical recommendations for stakeholders to make internet-enabled devices more affordable and an analysis of how the policy environment can contribute."
The report is structured into four chapters. The first one aims at defining handset affordability. The second and third chapters discuss the two key supply-side levers to deliver more affordable handsets: reducing the price of a handset through efficiency gains and cost savings in the value chain and improving customer access to financing. In the final chapter, the GSMA provides eight policy considerations, highlighting the importance of strengthening the enabling environment to improve handset affordability.
Below are the report's key findings:
1. The affordability barrier is not just
about the economic cost of purchasing a
handset relative to income. "It is just as important to consider the cost of a
handset in relation to a person's needs, preferences,
and perceived value to their life. Non-income-related
constraints also have an influence, such as awareness
of mobile internet, digital skills, mobile-related safety
and security and the social norms that constrain
certain groups from accessing and using mobile
and mobile internet, recognizing that some of these
constraints disproportionately impact on certain
groups of the population, including women."
2. New technologies have emerged,
disrupting the market and offering new
opportunities to make handsets more
affordable. "Over the past few years, two main innovations have
driven down the cost of handsets: the development
of lightweight operating systems (OS) and remote
handset locking technologies. Lightweight OS have
enabled the development of handsets that are less
costly to manufacture, particularly smart feature
phones and ultra-low-cost smartphones. This has
narrowed the price differential between a basic
2G phone and a 3G or 4G handset. Similarly, the
emergence of remote handset locking technologies
has enabled a wider range of providers to offer
financing with no or limited credit scoring by using
the handset as collateral."
3. Lower prices can be offered by providing
customized smartphones that meet local
needs. "Several mobile operators, manufacturers and PAYG
solar companies have been designing smartphones
that are customized to the needs of end users in
a specific market or region while simultaneously
optimizing the costs of smartphone components."
4. Procurement, distribution and marketing
should not be overlooked when lowering
handset costs. "It is possible to reduce handset costs by passing
on the savings from more efficient procurement,
distribution and marketing. The convergence of
commercial interests to increase the availability
and affordability of internet-enabled handsets
has created new opportunities for partnerships,
for instance, between the mobile industry and
organizations that have developed last-mile
distribution networks. Marketing partnerships can
not only help reduce costs, but also reach a wider
audience and raise awareness of the availability of
affordable handsets and finance schemes."
5. The emergence of refurbished phone
business models not only opens access
to quality phones at a reduced price, but
also helps the planet. "Keeping handsets in use for longer or giving them a 'second life' can improve affordability. Those selling
their handset receive money in exchange, thereby
increasing their buying power. Those purchasing a
refurbished handset can benefit from 10 per cent to
80 per cent discounts compared to buying one new."
6. Innovative finance schemes and payment
models better suited to the livelihoods of
people in LMICs are being developed. "There are context-specific factors to consider
when developing an appropriate inclusive handset
finance business model. Finance schemes that use
alternative data for credit assessments or accept a
handset as collateral allow customers to repay the
handset in instalments, thereby reducing the upfront
cost. Offering flexible payment terms, such as daily
micro-repayments, are particularly well-suited to
those who earn income on a daily basis."
7. Strengthening the enabling environment
is key to improve handset affordability. "This report provides eight key policy considerations
to improve access to internet-enabled handsets
ownership for underserved populations. This
includes reducing sector-specific taxes, providing
subsidies to target user groups, developing public-private partnerships to de-risk handset financing,
and stimulating demand by increasing awareness
and willingness to pay."
8. There is no one-size-fits-all solution.
Implementers should be mindful of the
context in which they are operating and
who they are aiming to reach. "Depending on the region or country, some solutions
may be easier to implement than others. For
example, a thriving mobile money ecosystem
makes it easier to offer handset finance and good
infrastructure is necessary for the collection of
used phones in a refurbishment business model.
Meanwhile, regulations such as high taxes on
imported handsets and laws forbidding device
locking inhibit innovation."
Referencing the 2021 GSMA Consumer Survey, the report notes that "the affordability of handsets remains the top-reported barrier to mobile ownership in LMICs and a key barrier to mobile internet adoption, particularly for women and rural populations. Ensuring that handsets are affordable for different underserved segments of the population is critical to enable access to mobile broadband and close the digital inclusion gap."
What is more, "Mobile internet connectivity has a strong macroeconomic impact; an increase of 10 percent in mobile internet penetration results in an increase in 1.8 percent of GDP in middle income countries and 2 percent in low-income countries. However, without a compatible device to access mobile internet, millions of people cannot reap the potential benefits mobile internet has to offer."
Lastly, the report importantly points out that "[m]ost of the unconnected live in LMICs and certain groups are more excluded than others, including women and those living in rural areas. Although smartphone adoption continues to increase across LMICs, penetration varies significantly by country and region. For example, in Sub-Saharan Africa, smartphones account for less than half of total connections while in South Asia they account for just over 60 percent."
Do you support the report's findings? What are you recommendations for making internet-enabled phones more affordable in low- and middle-income countries?
Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.
"Over the past decade, mobile money has expanded from a niche offering in a handful of markets to a mainstream financial service, moving millions of households in low- and middle-income countries (LMICs) from the informal cash economy into a more inclusive digital economy," according to GSMA's State of the Industry Report on Mobile Money 2022. Available in English and Français, the GSMA, a UK-based organization that aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, adds: "In 2012, there were 169 mobile money deployments in 71 countries. Ten years on, the number of live deployments has almost doubled to 316 and expanded to 98 countries worldwide."
A product of GSMA's Mobile Money program, which works to accelerate the development of the mobile money ecosystem for the underserved, the report examines the following major industry trends of 2021:
1. A trillion dollars transacted as the industry diversifies. "In 2021, the mobile money industry processed more than $1 trillion in transactions. The year-on-year increases in transaction values have been driven by new customer uptake and a growing number of mobile money use cases. For example, in 2012, ecosystem transactions such as bill payments, bulk disbursements, merchant payments and international remittances accounted for less than 10 percent of overall transactions. Ten years on, this has risen to 20 percent, a clear sign that mobile money providers are embracing diversification."
2. Mobile money adoption and activity continue their upward trajectory. "In 2021, the number of registered accounts reached 1.35 billion globally, up 18 percent since last year and 10 times more than there were in 2012 (134 million). 518 million of these accounts were active on a 90-day basis and 346 million on a 30-day basis, growing nearly 15 times and 13 times respectively since 2012. The volume and frequency of transactions also registered strong growth. In 2021, more than 1.5 million person-to-person (P2P) transactions were made every hour on average, compared to fewer than 68,000 in 2012, and the average account makes 3.5 P2P transactions per month."
3. Agent networks continue to thrive. "Between 2012 and 2021, the number of active agents grew more than 10 times, from 534,000 to 5.6 million, unlocking access to financial services for the most underserved customers. Despite closures and restrictions on movement during the COVID-19 pandemic, the value cashed in and digitized via mobile money agent networks grew by 18 percent in 2021, reaching a total of $261 billion or more than $715 million a day. Even the most established agent networks registered strong growth, with the 25 largest networks growing by more than 25 percent on average from 2020 to 2021."
4. Regulatory challenges persist. "Despite the huge success of mobile money services in many countries, in others, the sustainability of mobile money services is threatened by certain policy and regulatory interventions, from taxes on transactions to poorly implemented instant payment solutions and costly data localization mandates. The high cost of compliance is shared by mobile money providers and customers alike with potentially negative consequences on future investments in, and customer usage of, mobile money services. Dialogue between policy makers, regulators and industry leaders is of paramount importance in order to prevent adverse policy and regulatory interventions."
5. Merchant payments nearly doubled. "After a momentous year for merchant payments in 2020, in 2021 they nearly doubled, reaching an average of $5.5 billion in transactions per month and accounting for 21 percent of the value circulating in the mobile money system (P2P + merchant payments), up from around 10 percent in the past two years. Uptake has been in part driven by the number of businesses actively accepting and receiving mobile money payments."
6. International remittances are still flowing fast. "Two years on since the onset of the COVID-19 pandemic, diasporas around the world increasingly send money home using mobile money. The number of international remittances sent and received via mobile money grew by 48 percent in 2021, reaching $16 billion. Still, mobile money represents less than three percent of all remittances globally, meaning there is significant potential to digitize remittances and offer faster and more affordable ways to send money worldwide."
7. Bill payments leapt again in 2021. "Like other ecosystem transactions, the number of bill payments processed via mobile money leapt in 2021, growing by 37 percent to exceed $5 billion in transactions per month. For customers, mobile money-enabled bill payments can unlock access to a range of new services, such as off-grid energy, and help low-income users build economic identities. For government agencies and utility companies, mobile money-enabled bill payments can make revenue collection more efficient and cost-effective, strengthen financial transparency and circumvent fraud."
8. Bulk disbursements are seeing remarkable growth. "After registering 28 percent growth in 2020, mobile money-enabled bulk disbursements grew by another third in 2021, topping $65.8 billion. This growth is likely due to an uptick in salary payments as more and more employers turned to mobile money to pay their employees, with the number of unique accounts receiving salaries via mobile money increasing. The number of unique accounts receiving Government-to-person (G2P) payments were also up, as governments forged new partnerships with mobile money providers to deliver pandemic relief and other forms of social support."
9. Savings, credit and insurance are building financial resilience. "According to our Global Adoption Survey, approximately two in five (44 percent) mobile money providers offer credit, savings or insurance products. Uptake of these products in 2021 was encouraging across mature mobile money markets while they also gained traction in less mature markets, where customers are seeking out products to help protect their families and businesses against uncertainty and crisis, invest in their livelihoods and improve their standard of living.
10. Partnerships are pushing interoperability. "After recording exceptional growth in 2020, the value of transactions flowing between banks and mobile money platforms also grew quickly in 2021, up 46 percent, more than doubling since 2019. The continued acceleration of these types of transactions confirms the complementary relationship between banks and the mobile money industry that has been observed in the past few years, confirming mobile money’s key position in the financial ecosystem."
11. The mobile money gender gap is holding women and economies back. "Across LMICs, women are still less likely than men to own a mobile money account. This is due to a variety of reasons including not owning a mobile phone, lack of awareness of mobile money and lack of perceived relevance, knowledge and skills. Encouragingly though, once women have a mobile money account, their likelihood of using it is almost on par with men. As part of the GSMA Connected Women Commitment Initiative, 26 mobile operators across Africa, Asia and Latin America have made formal commitments to reduce the gender gap in their mobile money customer base since 2016."
12. Mobile money is enabling access to humanitarian assistance, utilities and agricultural solutions. "Mobile money is an enabler of many other services that can help solve critical socio-economic and environmental challenges, such as providing access to essential utilities, sustaining the livelihoods of smallholder farmers and delivering rapid financial relief to vulnerable populations. For mobile money providers, these use cases represent valuable opportunities to diversify, which many have already embraced."
The report concludes by explaining that "2021 has shown how the scale and power of mobile money can build a more inclusive world. Behind the numbers and milestones in this report are hundreds of millions of people participating in a more inclusive digital economy." What is more, "Individuals, communities and the public, private and non-profit sectors are all reaping the socio-economic benefits of mobile money."
The GSMA further says "even more profound benefits are possible if the industry and all stakeholders can catalyze efforts, reducing the mobile gender gap and meeting diverse customer needs to activate the billion registered customer accounts that are currently so infrequently used. In practical terms, this can also mean delivering more fast and secure cash transfers among the over 235 million people in need of humanitarian assistance; providing credit, insurance and other risk management tools to more of the nearly 500 million smallholder farmers growing a third of the world's food; and opening further access to affordable, reliable and safe water, energy and sanitation among the more than 1.2 billion people without access to core urban services."
It is encouraging to read how mobile money continues to grow rapidly, bringing a suite of financial products to hundreds of millions of users worldwide and disrupting traditional financial services. Moreover, mobile money is providing significant growth in merchant payments and enabling access to humanitarian aid, utilities and agricultural solutions. Nevertheless, while I recognize recent improvements to increase financial inclusion for women, more must be done to eliminate the mobile gender gap.
Are there aspects of GSMA's report on the mobile money industry that you found of particular interest?
Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.
"In 2021, the number of mobile internet subscribers reached 4.2 billion people globally," according to GSMA's report entitled The Mobile Economy 2022, which provides the latest insights on the global state of the mobile industry. The report reveals continued momentum in 5G adoption, with the total number of 5G connections expected to reach one billion in 2022, as usage grows rapidly in pioneer markets.
Highlighting the mobile industry's instrumental role in extending connectivity to people worldwide, the report, which is authored by GSMA Intelligence, the research and consulting arm of the GSMA, a UK-based organization representing the interests of mobile operators worldwide, notes that "Operators' investments in network infrastructure over the last decade have helped to shrink the coverage gap for mobile broadband networks from a third of the global population to just 6%." The 'coverage gap' refers to those living outside of areas covered by mobile broadband networks.
"But although the industry continues to invest in innovative solutions and partnerships to extend connectivity to still underserved and far-flung communities," the report points out that "the adoption of mobile internet services has not kept pace with the expansion of network coverage. This has resulted in a significant usage gap. In 2021, the usage gap stood at 3.2 billion people, or 41% of the global population." The 'usage gap' refers to those who live within areas covered by mobile broadband networks but do not yet subscribe to mobile broadband services.
The report's other key findings include:
By the end of 2025, 5G will account for around a quarter of total mobile connections, and more than two in five people worldwide will live within reach of a 5G network.
In 2021, mobile technologies and services generated $4.5 trillion of economic value, equating to 5% of global GDP. The report predicts that this will grow to $5 trillion in 2025.
As 5G adoption accelerates in leading markets such as China, South Korea, and the US, 4G begins to decline. Globally, 4G adoption will account for 55% of total connections by 2025, down from a peak of 58% in 2021.
But 4G still has room to grow in most developing markets. For example, in Sub-Saharan Africa, 4G adoption is below a fifth of total connections.
3% billion people subscribed to mobile services, representing 67% of the global population, by the end of 2021.
In a growing number of markets, most adults now own a mobile phone, meaning that future growth will come from younger populations taking out a mobile subscription for the first time.
With respect to the achieving the United Nations' Sustainable Development Goals (SDGs) before the deadline in 2030, the report says "Mobile technology will play a central role in those efforts, from improving access to education and healthcare to addressing issues with poverty and inequality." The report also outlines a set of policy recommendations for achieving a resilient post-pandemic recovery. This involves investing in digital skills training, utilizing public funds for connectivity, adopting a balanced approach to collecting revenues through taxes and fees in the mobile sector, and prioritizing digital transformation in government services.
Returning to the topic of the usage gap, the reports explains:
The reasons for the usage gap are multifaceted and vary by region, but they generally relate to a lack of affordability, relevance, knowledge and skills, in addition to safety and security concerns. Furthermore, the barriers to mobile internet adoption are particularly acute among certain segments of the population, including women, the elderly, those in rural areas and persons with disabilities – or a combination thereof. Addressing the usage gap for these key groups will extend the benefits of the internet and digital technology to more people in society, and will require concerted efforts by a broad range of stakeholders working together with mobile operators and other ecosystem players, such as device manufacturers and digital content creators.
Infographic: GSMA
What do you think of the report's findings? What solutions do you recommend for bridging the usage gap?
Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.
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