5G to drive $10bn growth in Africa – Report

A new report, The Mobile Economy Sub-Saharan Africa 2024, has revealed that 5G technology is poised to contribute $10bn to Sub-Saharan Africa’s economy by 2030, representing six per cent of the overall economic impact of mobile technology in the region.

The GSMA report, obtained on Monday by The PUNCH, highlighted the transformative potential of 5G in reshaping industries and accelerating economic growth.

The report projected that much of this economic impact will materialise over the next five years as 5G adoption gains momentum across the region.

By the end of the decade, the benefits of 5G are expected to level off as the technology reaches scale and widespread adoption, the telecom body said.

The report stated that the manufacturing sector is expected to drive 30 per cent of the economic benefits from 5G adoption, fuelled by innovations such as smart factories, IoT-enabled products, and smart grids.

Other sectors like information and communication technology and public administration are also set to benefit significantly, accounting for 13 per cent and seven per cent of the economic impact, respectively.

“5G will be a catalyst for economic transformation, with manufacturing emerging as a key beneficiary,” the report stated, emphasising the potential for businesses to leverage 5G use cases to improve efficiency and innovation.

The telecom body noted that 5G technology is now available in more than 100 countries globally, with 285 operators across 114 countries launching mobile 5G services by September 2024.

In Sub-Saharan Africa, 34 live 5G networks have been deployed across 21 countries, with fixed wireless access emerging as a critical use case.

FWA, which provides high-speed connectivity in areas where fibre deployment is not cost-effective, has become an important solution for bridging connectivity gaps in the region.

More than half of the 5G networks in Sub-Saharan Africa support FWA, underscoring its relevance for both consumers and enterprises.

While 5G adoption in Sub-Saharan Africa faces hurdles such as limited infrastructure and affordability, the report noted that the demand for enhanced connectivity and digital services is driving progress.

“Industries across the region are beginning to incorporate 5G-enabled technologies, creating opportunities for innovation and growth,” the report partly read.

As the adoption of 5G accelerates, the report urged policymakers and industry stakeholders to collaborate in addressing barriers to deployment, ensuring that the economic benefits are maximised.

By 2030, 5G is expected to reshape the region’s economy, providing a significant boost to industries and creating new opportunities for businesses and consumers alike.