19 May 2006
Johannesburg — Africa's mobile telecoms sector has grown by 39 percent annually since 2000, according to a report commissioned by the Organisation for Economic Cooperation and Development (OECD).
The report, "Economic Prospects for Africa 2005-2006", showed that 15 percent of Africans were mobile phone subscribers, while only 6 percent were fixed line subscribers.
The report said that progress was as a result of aggressive marketing by operators and the liberalisation of the sector by African governments.
However, the report also highlighted that growth is not evenly spread over the continent. Growth in Tunisia was 60 percent, Morocco and Algeria 40 percent, and 15 percent in Egypt. Sub-Saharan Africa's progress was dismal in comparison. Benin recorded 4.5 percent, Burkina Faso 3.5 percent and Ethiopia only 0.35 percent.
Ethiopia is an interesting case since government reports consistently show that the country averaged growth of seven percent over the past three years, which, if a true representation of growth, would almost certainly have driven mobile growth.
The report attributes growth to the stabilisation of inflation, at seven percent, and sustained growth of more than five percent across the continent.
Foreign investment in the communications sector has resulted in the modernisation of telecoms infrastructure, which has also contributed to growth, the report said.
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