Market For Mobile Phones In East Africa

One of the fastest growing mobile telephone markets in the world is East Africa.

Many foreign companies  are already eying the East African market to supply mobile handsets due to tremendous oppoutunities in this region of the world.

Rising demand for mobile handsets being met by Chinese firms

Chinese firms have been quick to meet the rising demand for mobile handsets in Kenya, Uganda, Tanzania, Burundi and Rwanda . These companies they have appointed agents and distributors for their products in East African countries.

East Africa is a price sensitive market

Most East Africans prefer to buy cheap goods instead of products made by multi-national firms based in the west. Because of the cost issue, mobile handsets originating from Asia are selling like hotcakes in East Africa.

East African mobile phone market has a huge potential of growth

With a penetration rate of a paltry 30 per cent and merely 37.6 million mobile subscribers, this region has a huge potential of growth in relation to the market for mobile phones.

3.5 % of East African GDP is as a result of mobile phone trade and trade of mobile related services

The mobile industry contributes a total of $56billion to Africa’s economy, representing 3.5per cent of Gross Domestic Product (GDP) in the continent. The number of mobile connections in eastern Africa is forecast to reach 800 million by the end of 2013. This will end up overtaking Latin America to become the second largest mobile market in the world, after Asia.

Mobile phone price wars in East Africa

Between 2010 and 2011 east African telecoms operators reduced prices by an average of 18 per cent so as to beat competition and subsequently stay relevant in the market. Price wars are very  common across the East African sub-continent.

Drivers of long term growth in this industry in East Africa

•  Transparent ICT regulation in East Africa- Laws are being amended to favor all players in the industry instead of merely meeting the interests of government and inconveniencing market players.
• Liberalized markets- The age of monopolies. Market entry barriers  are slowly being elimnated in favor of free trade.
• Patnerships between mobile service providers and East African governments- By working in partnership, mobile operators and East African governments can continue the remarkable growth story of the African mobile industry. The benefits that mobile services have already brought to hundreds of millions of Africans can be extended to those who have yet to connect – by so doing, the African continent can continue to bring not only communication services, but also improved financial services, healthcare and education to its people and drive an increase in the economic wealth and development.