Africa's Telecom to Connect 500 Million Users by 2030, Adding $170 Billion

Africa’s telecom sector is entering a decisive decade, with the potential to connect 500 million new users by 2030—a shift that could unlock an estimated $170 billion in GDP growth. The continent’s demographics are central to this story: by 2030, Africa is projected to have 602 million people aged 15–34, a generation that will drive demand for mobile connectivity, digital services, and online financial tools. Subscriber numbers are also rising steadily, with mobile penetration expected to reach 50% (751 million users) by 2030, up from 44% (527 million) in 2023. This growth, however, is unfolding against a backdrop of low internet adoption, with sub-Saharan Africa’s mobile internet penetration at just 27% in 2023, compared to a global average of 69%.

Beyond connectivity, telecoms are becoming a platform for financial and digital inclusion. Sub-Saharan Africa already hosts 835 million mobile money accounts, making telcos a vital link in the region’s fintech boom. This infrastructure is enabling services from cross-border payments to small-business credit, further embedding telcos in Africa’s economic transformation. Yet challenges persist. Entry-level smartphones remain expensive—costing nearly a full month’s income for the poorest 20% of households. Meanwhile, rising energy costs, sector-specific taxes, and currency devaluations continue to squeeze operator margins, raising questions about long-term sustainability.

Looking ahead, the integration of generative AI could be transformative. Applications range from enhancing customer service with AI-driven chat and personalization, to network optimization and predictive maintenance, to the design of entirely new digital products. For Africa’s telecom operators, the decade ahead is less about incremental subscriber growth and more about reinvention—turning telcos into digital ecosystems that not only provide connectivity but also power Africa’s broader digital economy. If executed well, these strategies could ensure the sector delivers both growth and impact, helping Africa leapfrog into a more connected, inclusive future.

Source: McKinsey