How can we spread technology throughout the continent? by François Barrault (New York Forum Africa 2012)


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Presentation of François Barrault during the New York Forum Africa 2012

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How can we spread technology throughout the continent? by François Barrault (New York Forum Africa 2012)

  1. 1. TECHNOLOGY How can we spread technology throughout the continent?François BARRAULTChairman, IDATE Copyright © IDATE 2012
  2. 2. Telecoms in Africa: how does it fit into the global market?• What percentage of the sector’s global revenue keeping in mind that the entire African economy represents 3% of global GDP? > Close to 4% Africa’s telecom markets generated €43 billion in 2011• What fixed line teledensity ? (Note: 34 lines per 100 inhabitants on average in Europe) > 3.6 lines per 100 inhabitants Africa is home to 3.2% of the world’s active fixed lines• What broadband density (Note: 23 connections per 100 inhabitants on average in Europe)? > 0.8 connections per 100 inhabitants Africa has 1.3% of the world’s broadband connections• What mobile density? > Around 60% (60 SIM cards per 100 inhabitants) and over 100% in 13 countries Africa is home to 10% of the global cellular base2 Copyright © IDATE 2012
  3. 3. Telecoms in Africa: how fast is the market growing?• Revenue increased by nearly 5 times over the past 10 years…• vs. 58% growth for the global market! Annual growth of telecom service markets 45% 40% 35% 30% 25% Africa 20% World 15% 10% 5% 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: IDATE3 Copyright © IDATE 2012
  4. 4. Telecoms in Africa: market breakdown• Mobile services account for 82% of Africa’s telecom market revenue…• … vs. 52%-53% in Europe and North America Breakdown of telecom service revenues in Africa USA AFRICA fixed telephony mobile services EU-27 corporate data & internet access Total revenue in 2011: €43 billion Source: IDATE4 Copyright © IDATE 2012
  5. 5. Telecoms in Africa: how many telcos?• More than 170 mobile network operators, or an average 3.5 per country, serving a population one billion people and operating more than 600 million SIM cards. To compare: − 4 operators control close to 90% of the market in the US − 15 mobile operators in India for 1.2 billion people − 3 mobile operators in China for 1.3 billion people• 5 or more operators in 10 countries in Africa: − 6 in Uganda and Burundi − 7 in Somalia − and… 9 in Nigeria5 Copyright © IDATE 2012
  6. 6. Looking beyond the mobile explosion…• To what extent are mobiles now acting as levers for innovation in certain sectors such as: ˗ Banking? (15 million people use the M-Pesa mobile payment system in Kenya) ˗ Healthcare? ˗ Education? ˗ Agriculture?• Is there another technology success story in Africa? (today or potential)6 Copyright © IDATE 2012
  7. 7. What is standing in the way of technical innovation?• Of creating a system of trust (competition policies, network security, respecting copyright, freedom of the internet and the media)?• Overcoming the lack of qualified workers/managers and schools of engineering?• Hampering investment in high-speed infrastructure (3G/4G, FTTx)?• and the lack of venture capital?• …7 Copyright © IDATE 2012
  8. 8. Can Europe offer any lessons?• In learning to work together beyond our borders? (fostering debates like this NY Forum…) - on a continental… - or possibly regional/sub-continental scale? • In bringing Africa more fully into standardisation and regulatory bodies?• In a new view of North-South cooperation?8 Copyright © IDATE 2012
  9. 9. About IDATEFounded in 1977, IDATE has gained a reputation as a leader in tracking telecom,Internet and media markets, thanks to the skills of our teams of specializedanalysts.Now, with the support of close to 40 member companies – which include many of thedigital economy’s most influential players – the newly rebranded DigiWorld Institute hasentered into a new stage of its development, structured around three main areas ofactivity:• Time-tested analysis and consultancy Our expertise and client list > Consulting• An independent observatory Our catalogue of reports > Research• A European forum open on the world Our annual programme > DigiWorld Institute9 Copyright © IDATE 2012
  10. 10. Thank you! Copyright © IDATE 2012