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Current challenges McKinsey’s positive outlook for the development of Africa’s Internet sector is influenced by the dramatic uptake of mobile telephony, stating that at present there Right: African Internet cafe are 67-million smartphones in use on the Below: Mobile continent, with this figure expected to reach telephony has 360-million by 2025. “Mobile telephony has already had an already had an outsized effect in Africa as it outsized effect connected people who previously had little in Africa or no access to telecommunications due to the scarcity of fixed-line infrastructure. If the Internet matches or exceeds that level of impact, the result could be a leap forward in Africa’s economic growth and To sustain this momentum, however, development,” the report notes. governments and the private sector will need McKinsey estimates that Africa’s iGDP to ensure that the foundations are in place to (a concept developed by the organisation support demand and continue with this wave as a comparable “measure of the Internet’s of innovation. Increasing access, developing contribution to the overall economy as a workforce with ICT skills, and improving a share of total GDP”), may rise to five, digital literacy in the broader population or even six percent of GDP (the same will be critical for the future growth of the as that of Taiwan, the United Kingdom Internet, the researchers suggest. and Sweden). In an even more optimistic scenario, based on the scale of mobile The road ahead telephony, iGDP could reach 10% of total For Africa to unlock the potential of the GDP. McKinsey calls this the ‘leapfrog Internet, action must be taken by both scenario’, and notes that “increased Internet government and the private sector. Moreover, penetration and use could propel private these two entities will have to work together. consumption almost 13 times higher than Urbanisation will aid Government’s primary role is developing current levels of US$12-billion, reaching a cohesive national strategy, underpinned some US$154-billion by 2025. The amount Internet penetration by a clear road map for developing spent on Internet access and use alone telecommunications infrastructure and could increase from US$5,7-billion today headed by a skilled champion. It must to US$35-billion in 2025. If 10% of retail of a number of digital entrepreneurs – also work to create an attractive business spending in Africa’s largest economies were among them Nigeria’s Konga and Jumia – environment for the private sector and, to move online, e-commerce activity could is also important, as is the fact that these while working to show individuals how the result in revenue of US$75-billion.” entrepreneurial activities are being further Internet can benefit them, must implement There are several factors in the fostered through incubators and investors. programmes to build ICT skills. continent’s favour, says the report. A But challenges remain. Download The private sector, meanwhile, can drive number of governments have made massive speeds are slow, bandwidth costs are development by ensuring that telecom investments in infrastructure and rolled out high, and in most countries there are few operators are geared to meet needs; 3G networks; plus, the rapid urbanisation of secure servers. primarily by being ready for a migration the African population (expected to reach “Given levels of pent-up demand and from voice to data, scaling up mobile data 50% by 2030, up from the present 40%) the current pace of innovation, Africa’s services, and rolling out base stations, 4G networks and fibre backhaul to provide iGDP could catch up very quickly with means that a previous obstacle – overcoming PHOTOS: ISTOCKPHOTO, SUPPLIED may become a thing of the past. the most impact,” the report observes. to improve the network experience, reduce the vast distances between rural villages – that of countries in which the Internet has reliable connections. They should also work monthly access costs and increase pricing “There is already a groundswell of McKinsey also points to the activity paving the way towards a future transparency, educate consumers on how youthfulness of the population (200-million to use the service, and demonstrate the in which digital payments displace cash, people aged between 13 and 25; the age utility of the Internet to new populations. consumers shop online, students use group that is the most technologically Other private sector players can help by inclined) as an advantage, as these users personalised learning tools, and doctors connect with patients in rural villages.” will drive demand. The stand-out success introducing innovative digital services. Third quarter 2014 strategicmarketingafrica 33 32-33 The Internet v2.indd 39 2014/06/26 12:18 PM