Closing the mobile internet usage gap could generate an additional $3.5 trillion in global gross domestic product (GDP) between 2023 and 2030. In sub-Saharan Africa, the potential gain is $795 billion, according to the Global Mobile Operators Association (GSMA) report “The State of Mobile Internet Connectivity 2024.”

The region is thus the third in the world with the highest estimated additional income, after South Asia and East Asia and the Pacific. This financial potential highlights the economic imperative of connecting previously unconnected populations in this part of the world, which has the largest mobile Internet usage gap (the proportion of the population living in an area covered by a mobile broadband network, but who do not use it).

Source: GSMA

Currently, Sub-Saharan Africa has a relatively high mobile coverage rate. Although it is lower than that of other regions of the world, it still reaches 87%. However, this coverage is only used by 27% of the region’s population, leaving a usage gap of 60%. In other words, 6 out of 10 people could use mobile Internet, but do not. Several obstacles explain this situation, requiring increased attention from sector players.

The cost of mobile

According to the GSMA, “  Affordability of an entry-level internet-connected device has been relatively stable, while internet affordability continues to improve in low- and middle-income countries (LMICs) in most regions. However, access to devices and the internet continues to disproportionately affect the poor. In LMICs, the cost of an entry-level device is on average 18% of average monthly income. However, for the poorest 40%, this cost rises to 39% of monthly income, and to 51% for the poorest 20%  .”

In sub-Saharan Africa, which is home to a quarter of the world’s unconnected population, an entry-level device costs 99% of the average monthly income for the poorest 20%. This financial inaccessibility of devices is therefore one of the main reasons for the mobile Internet usage gap.

Source: GSMA

To overcome this difficulty, the Association estimates that a $20 device could become affordable for about 2 billion people who are currently unconnected. Initiatives in this regard already exist: companies such as Orange, with the Sanza model, and Kaios offer low-cost smartphones to overcome the accessibility problem. In addition, the staggered payment of phones is an approach tested by some telecom operators, allowing consumers to choose their mobiles without being limited to the default models.

The price of the Internet

While the affordability of 1 and 5 gigabyte (GB) plans is improving, the cost of mobile internet remains a major barrier, particularly for disadvantaged populations, including the poorest and women. In 2023, only Europe and Central Asia, as well as South Asia, had a majority of countries where the price of 1 GB represented less than 2% of the monthly income of the poorest 40%. For 5 GB plans, only Europe and Central Asia meet this affordability target. In sub-Saharan Africa, the median cost of 1 GB reaches 15% of average income for the entire population and 34% for the poorest 40%, according to the GSMA.

Source: GSMA

The International Telecommunication Union (ITU) has set two targets: to reduce the cost of an entry-level broadband subscription to less than 2% of the average monthly income and to less than 2% of the average income of the poorest 40%. In sub-Saharan Africa, more than half of countries have not yet reached this affordability target. Thus, improving access to mobile devices and the Internet could significantly reduce the usage gap, generating an economic impact estimated at $625 billion.

The Gender Question

The gender gap in usage is also a major challenge. In sub-Saharan Africa, women are 32% less likely to use mobile internet than men, although there has been a slight improvement from the previous year (36%). This gap remains close to the 2017 level (34%). Sub-Saharan Africa and South Asia have the largest gender gaps in mobile internet access. In LMICs, 60% of unconnected women live in these regions.

The cost of an entry-level device represents on average 24% of women’s monthly income, compared to 12% for men. Income and employment differences, as well as social norms and family pressures, further hamper women’s access to mobile internet. Closing this gap in LMICs could generate an additional $1.3 trillion in global GDP over the period 2023-2030. In sub-Saharan Africa, the financial contribution is estimated at $170 billion.

Mobile Internet is a critical lever for economic growth, particularly in low- and middle-income countries, where it is often the primary or sole means of accessing the Internet. Studies show that a 10% increase in mobile broadband penetration can boost GDP by 1.0 to 2.5%. This technology improves the productivity of firms and workers, reduces the cost of searching for information, and stimulates trade.

Source: Agency EcoFin