How are mobile phones driving africa digital economy

With the size of ecommerce, touching $ 25 trillion, digital infrastructure is a key determinant required by small and medium enterprises in developing countries to be a part of the global value chain

The investment in mobile phone and its infrastructure and derived services provide significant benefits to the economy.

It is important for developing countries to have such technology and benefit from it in order to further their economic growth. Investing in telecommunication technology is continued to be the best hope for developing countries to accelerate their development process.

Since the intensity of cell phone and telecommunication technology adoption in general is itself significantly dependent on the level of economic development and competitiveness of nations .

There is a need to focus on bridging the mobile digital divide in a meaningful manner to initiate the negotiations, without addressing the problems of small and medium businesses in a digital environment, it will further marginalize them.

There is a considerable measure of incredible news leaving Africa for portable technology business visionaries.

The absence of a wide and successful landline phone framework did not turn out to be a hindrance to African organizations creating inventive business solutions.

In 2011 Africa surpassed Latin America to end up the second greatest versatile market on the planet after Asia, with 620 million portable associations by 2011 alone. This has guaranteed that a ton of extraordinary development and inventive thoughts have risen up out of the African mainland.

Pesapal is one of numerous awesome cases of fruitful, immediately received portable answers for offer successful answers for versatile online business. Pesapal features that the boundary to passage currently is much lower for African internet business arrangements. On the off chance that you can imagine a thought and put it out into the market it is conceivable to then rapidly check whether it is something clients will draw in with.

South Africa had a solid nearness, yet west and east Africa were additionally spoken to, outlining that over the landmass creative portable activities are rising.

The achievement of activities like Mxit.com from Namibia, an interpersonal organization that rose up out of early birthplaces as a texting application shows the energizing potential for creating and developing organizations in Africa. The obstructions to appropriation are low, and with youthful, well informed crowds in numerous substantial urban territories, there is awesome potential for youthful business people to create effective thoughts.

Worldwide financial specialists, for example, Dave McClure organizer of 500 startups are clear in their assurance to grow their number of hatcheries and quickening agents in Africa. Addressing McClure at the ongoing Web Summit in Dublin he expressed that he was sure 500 Startups would be hugely scaling up their essence in Africa throughout the following 5 years.

Just yesterday he took off on a worldwide ability trip which will incorporate stopovers in Northern Africa. Correspondingly, Seedstars World are likewise running a progression of African occasions to urge new businesses to pitch and build up their thoughts, with money related sponsorship for the individuals who are chosen.

It’s an energizing time for African confronting organizations, with numerous nearby and furthermore European-based financial specialists hoping to help and draw in with African activities. There are numerous dynamic online gatherings for speaking with and discovering more about the different activities. We additionally anticipate finding out about more awesome African activities and, ideally, highlighting some of them in future articles.

Globally, all regions of the world are gaining access to the internet and mobile phones, with mobile phones driving a great deal of the gains. In sub-Saharan Africa business economy, more than 60% of individuals now have access to a mobile phone. Convergence around mobile phones is occurring in two simultaneous and reinforcing ways: mobile phones are superseding or preceding other communication methods as the technology of choice for individuals looking for greater interconnectedness, and they are also incorporating (rather than replacing) other mediums in the provision of content.

Mobile phones are cheap, easy to use, provide many benefits to business and do not require much literacy or numeracy for basic use. They can be shared, prepaid, billed in prices per second, depending on the needs and abilities of the owner(s). In Cameroon, Ethiopia, Rwanda, Tanzania, and Uganda, more than four in five mobile phone owners have simple phones, not capable of browsing the internet.

Mobile phones are also capable of providing a diversity of interactive activities in economy. Mobile apps, text messaging, calling, and internet browsing are all possible from these small devices.

In African countries, social networking marketing, sending and receiving e-mails, instant messaging, and checking facts and definitions are the most common uses of the internet. This have help Africa business economy to fast track their various turnover in sales and improving the market size . The consumption of games, online newspapers, books, radio, and video also signals that rather than replacing these traditional mediums, the internet incorporates their digital versions.

Image: World Bank

The World Bank’s 2016 World Development Report, “Digital Dividends” notes that “For many people, today’s increase in access to digital technologies brings more choice and greater convenience in business. Through inclusion, efficiency, and innovation, access provides opportunities that were previously out of reach to the poor and disadvantaged to economy.”

Image: World Bank

It also cautions that “Despite the rapid spread of digital technologies, more than 800 million people lack mobile access worldwide (63 percent of them in the bottom 40 percent of the income distribution), and 4.3 billion lack internet access (49 percent in the bottom 40). For every person connected to the internet in developing countries, almost three are not, and in some countries, 20 are not.

Big gaps remain by income, age, location, and gender (figure 2.4, below). In African countries, the bottom 40 percent is only one-third as likely to have access to the internet as the upper 60 percent; 18 percent of men report using the internet versus 12 percent of women, and 20 percent of youth versus 8 percent of those more than 45 years old.”

The mobile phones in less developed economies are playing the same crucial role that fixed telephony played in the richer economies in the 1970s and 1980s. Many countries with under-developed fixed-line networks have achieved rapid mobile. Although building a cell phone infrastructure for a given country is by no means inexpensive, it is relatively less costly to build cell towers than roll out land line connections to every home.

First, income and purchasing power determine the level of investment in mobile sector as well as the economic sacrifice potential adopters can make to acquire mobile phones. Second, the contribution of high technology in the gross domestic product (GDP) of countries determines the extent to which mobile sets are available or imported in developing countries.

High technology contributes a relatively high proportion of GDP in some developing countries such as China, Malaysia and Thailand and mobile sets are likely to be cheaper and easily available in these countries.

Many developing countries do not produce mobile sets domestically. Tariff and non-tariff barriers often make mobile phones expensive and unavailable in such countries.

Third, the types of uses of mobile phones depend upon the economic activities in the country. Mobile phones in developing countries, for instance, are being used in such activities as buying and selling stocks online, protecting maize farms from robbery, and tracking world prices of agricultural products. Fourth, availability of related technologies and infrastructure plays an important role in the diffusion of mobile phones.

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