Mobile services generate $240bn for Africa’s economy – ATU – Daily Trust

The African Telecommunications Union (ATU) has highlighted the growing economic impact of mobile technology and services across the continent, revealing that the sector now contributes $240billion to Africa’s economy while supporting millions of jobs and generating billions in public revenues.

Speaking at the Digital Africa Summit Workshop in Abuja jointly organised with GSM Association (GSMA), on Wednesday, ATU Secretary General John Omo said the latest findings from the GSMA Mobile Economy Africa Report 2025 underscore the central role of telecommunications in Africa’s economic transformation and digital future.

According to Omo, the report showed that mobile technologies and services contribute approximately $240 billion annually to Africa’s economy, support 13 million jobs, and generate $45 billion in government revenues across the continent.

He described the figures as remarkable, noting that barely 25 years ago, Africa’s mobile communications industry was virtually non-existent.

“If you consider where we were 25 years ago, these achievements demonstrate just how far the telecommunications industry has come,” he said.

Omo said the report provides policymakers with valuable evidence to better understand Africa’s evolving digital economy and identify priority areas for future investment and regulatory reforms.

Despite the impressive economic gains, the ATU Secretary General warned that infrastructure expansion alone should no longer be regarded as the ultimate measure of digital progress.

According to Omo, many communities remain excluded from the benefits of digital transformation because of affordability challenges, inadequate digital literacy and limited access to relevant online services.

“Coverage is indispensable, but it cannot be our only measure of progress,” he said, adding, “What matters is whether infrastructure becomes useful in the daily lives of our people.”

Also speaking at the workshop, GSMA Senior Director for Public Policy, Africa, Caroline Mbugua, said Africa was entering an “era of intelligence,” where AI would increasingly shape economic growth and public service delivery.

However, she warned that the continent risks leaving millions behind unless governments urgently address barriers to digital access.

According to her “AI development depends on widespread access to reliable connectivity and affordable smartphones, yet millions of Africans remain excluded despite living in areas already covered by mobile broadband networks.”

Mbugua revealed that about 961 million Africans fall within what GSMA describes as the usage gap—people who live in areas with mobile broadband coverage but do not use mobile internet services.

She noted that unless this gap is closed, a significant portion of Africa’s population would be unable to benefit from AI-driven opportunities.

She explained that accelerating smartphone adoption would unlock digital transformation across key sectors, including healthcare, education, transportation and public services.

To achieve this, she urged governments to introduce fiscal reforms, particularly by reducing or eliminating taxes on entry-level smartphones.

In her remarks, Michaela Angonius, GSMA’s Head of Global Policy and Regulation, identified three major policy priorities for African governments to accelerate digital inclusion on the continent.

She argued that existing telecommunications licensing regimes are outdated because they are tied to specific technologies.

Instead, she recommended technology-neutral licensing systems that accommodate rapidly evolving technologies, including satellite communications.

Angonius explained that many regulators struggle to classify satellite operators under current licensing frameworks, a problem that could be eliminated through technology-neutral regulations applicable to all communications providers.

She also called for reforms to Universal Service Funds (USFs), noting that many African countries accumulate substantial unused balances while continuing to impose levies on telecommunications operators.

According to her, “these unused funds effectively function as additional taxes that ultimately increase consumer costs and worsen affordability challenges.”