GSMA forecasts 5G and mobile tech to fuel $11 trillion in GDP by 2030, transforming industries like manufacturing, finance, and automotive.

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Ahead of MWC25 Barcelona, GSMA Intelligence has launched research highlighting a dramatic shift in the global economy, with advanced connectivity and mobile technologies to contribute $11 trillion to global GDP by 2030 – which represents 8.4% of the total. This surge represents a significant increase from the contribution of $6.5 trillion (5.8% of overall GDP) in 2024, emphasising the growing role and exciting potential of digital technologies and enterprise transformation in reshaping industries.

GSMA Intelligence’s Economic Growth and the Digital Transformation of Enterprises 2025 report highlights manufacturing, financial services, automotive and aviation as pivotal sectors, contributing nearly 34% of the projected $11 trillion impact by 2030. Advanced connectivity will continue to transform these industries, driving significant cost efficiencies and revenue growth globally.

Advanced connectivity such as 5G is unlocking new opportunities for innovation and growth. However, to realise its full potential, more collaboration is needed between policymakers, network operators and enterprises to overcome barriers to enterprise adoption such as high implementation costs and lack of technical expertise. Only through deep cooperation can we fully harness the benefits of this digital revolution.

– Pau Castells, Head of Economic Analysis, GSMA Intelligence

Manufacturing

  • Manufacturing currently accounts for 23% of global GDP, facing significant challenges including supply chain disruptions and the need to adjust to climate targets. Promisingly, the adoption of technologies such as IoT, robotics and big data analytics is projected to boost the sector’s GDP by $2.1 trillion by 2030.
  • By integrating advanced connectivity solutions, including 5G, the report predicts manufacturers could achieve over $400 billion in annual cost savings by 2030.

Financial services

  • The financial services sector currently contributes 7% to global GDP, experiencing rapid transformation through widespread adoption of technologies including cloud computing, AI, and blockchain. According to our research, this transformation will boost the sector’s GDP by nearly $900 billion by 2030.
  • Next-gen connectivity plays a central role in enabling new channels to real-time data analysis, integration of artificial intelligence for improved task efficiency and faster time to market for new products. By 2030, this could uplift sector’s revenue by nearly $140 billion in indirect benefits.

Automotive

  • The automotive sector contributes approximately 3% to global GDP, and it is undergoing a profound transformation driven by the adoption of connected, electric and autonomous mobility solutions. By 2030, digital technologies are expected to increase the industry’s GDP by almost $600 billion.
  • 5G will play a critical role in enabling smart automotive factories and autonomous vehicle operations, saving the sector a projected $45 billion annually by 2030.

Aviation

  • Contributing 1% to global GDP, the aviation sector uses digital technologies to enhance operational efficiency and passenger experiences. Digital transformation is expected to boost the sector’s GDP by $200 billion by 2030.
  • 5G-enabled smart airport solutions, including IoT sensors and AI-powered systems, will enhance infrastructure monitoring, asset tracking and security systems, potentially saving airports $10 billion annually by 2030.

Redefining connectivity with 5G

As industries worldwide undergo rapid digital transformation, 5G stands out as a key component of economic growth, with nearly 85% of enterprises rating 5G as critical to their digital transformation strategies. With ultra-fast data transmission, low latency and massive device connectivity, 5G is enabling use cases previously constrained by legacy technologies. The report highlights that industries adopting 5G technologies are experiencing accelerated progress in automation, AI integration and IoT-based solutions.

Supporting Digital Transformation with GSMA Connected Industries at MWC

GSMA Connected Industries returns to MWC25 Barcelona this year to showcase the transformative potential of advanced mobile technologies and diverse solutions across Manufacturing and ProductionFintech and Mobile CommerceSmart Mobility and Sports and Entertainment. Bringing together a wide range of businesses and industry leaders, Connected Industries is an exclusive showcase of how 5G, IoT and other digital solutions are powering smarter and greener operations, unlocking new possibilities in advanced connectivity and accelerating the next wave of industry 4.0.

Connected Industries at MWC offers a unique opportunity for businesses and technology leaders to hear first-hand from our GSMA members and partners on how emerging mobile technologies and 5G applications are shaping industries and enabling new use cases like enhanced factory floor automation, improved fraud prevention, smart airports and connected and autonomous vehicles. Mobile is certainly at the heart of digital transformation and our summits at MWC will showcase these innovations throughout the week.

– Richard Cockle, Connected Industries lead and Head, GSMA Foundry

The GSMA also supports Connected Communities, an initiative to bring mobile network operators and industry together to innovate. Members can get involved in the communities to collaborate on technical projects, participate in thought-leadership, share knowledge and insights, network with the broader ecosystem and help to drive digital change. The GSMA’s Connected Communities span Connected Manufacturing and Production, Connected Fintech and Mobile Commerce, Aviation, 5G IoT, 5G Futures, Identity and Data, the Tower & Fibre Forum, Non-Terrestrial Networks (NTN) and Satellite and the 5G Innovation and Investment Group Forum.

Source: www.techafricanews.com

Striking the Balance: Advancing 5G While Maximizing 4G to Close Africa’s Digital Divide

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Writer: TechAfrica News Editor-  Akim Benamara

5G is being positioned as the future of connectivity —powering everything from AI-driven industries to smart agriculture and autonomous systems. It’s fast, efficient, and capable of transforming economies. In Sub-Saharan Africa, 5G’s contribution to the economy is projected to reach $10 billion by 2030 (GSMA), accounting for 6% of the overall economic impact of mobile. By the end of 2023, global 5G connections had surpassed 1.5 billion, making it the fastest-growing mobile technology in history.  

But while the rest of the world surges ahead with 5G, Sub-Saharan Africa still faces a different reality—one where 3G remains the primary network for millions of people, and 4G adoption is progressing at a considerably steady pace, and some are even still using 2G. As of 2023, only about 31% of mobile connections in Sub-Saharan Africa were on 4G and 1.2% on 5G (though expected to increase to 50% and 17% respectively by 2030). This seemingly slow transition isn’t just about infrastructure; high device costs, affordability barriers, and uneven network coverage mean that for many, even 4G remains out of reach.  

So, how do we talk about 5G’s potential when millions of Africans are still unconnected? 

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The reality is, we can’t just skip steps. A rapid push for 5G won’t automatically bridge the digital divide—in fact, it could make it worse. If millions remain stuck on 2G and 3G while 5G networks expand in isolated pockets, we risk widening the connectivity gap rather than closing it. Before we embrace the promise of 5G, we need to ensure that existing technology—particularly 4G—is maximized to bring as many people online as possible. 

In this #TechTalkThursday, we’ll explore why striking a balance is crucial, advancing 5G while ensuring that 4G reaches its full potential in Africa. 

The Current Landscape: Where Africa Stands Today 

While much of the world has moved on to 4G and 5G, Sub-Saharan Africa remains a 3G-dominated region. According to GSMA, a staggering 60% of online users in Sub-Saharan Africa still rely on 3G technology, which is slower, less energy-efficient, and limits access to digital services like mobile banking, e-learning, and telemedicine. Although 4G adoption is on the rise, it is not happening fast enough to drive the kind of digital transformation needed to close the connectivity gap.

The growth of 4G across the continent has been constrained by two major obstacles: affordability and coverage. Even as mobile operators expand their 4G networks, many Africans cannot afford 4G-enabled devices, which remain out of reach for lower-income households. Additionally, rural areas are still underserved, with large parts of the population lacking access to reliable 4G networks. Yet, despite these challenges, 4G is expected to become the dominant mobile technology in Africa by the end of the decade. The shift is happening, but not fast enough to bridge the digital divide before 5G begins to take center stage.

On the other hand, the promise of 5G is beginning to take shape in Africa, but it remains a story of limited deployment rather than widespread adoption. South Africa, Nigeria, and Kenya are expected to account for more than half of all 5G connections in Africa by 2030, according to GSMA. However, across much of the region, 5G remains in the trial and early rollout phase, with infrastructure, device affordability, and demand still posing major obstacles. For many telecom operators, the focus is still on expanding 4G coverage before making large-scale investments in 5G.  

This makes sense: while 5G is the future, most Africans are still making the transition from 3G to 4G, not from 4G to 5G.  

Why 5G Might Not Be the “Immediate” Answer 

While 5G undoubtedly has its advantages, it might not necessarily be the immediate answer to Africa’s digital divide. The infrastructure demands alone pose a significant challenge—5G requires dense fiber networks, extensive tower upgrades, and higher energy consumption, all of which come at a steep cost.  

As Angela Wamola, Head of Sub-Saharan Africa says in an interview with TechAfrica News, “Investment is still needed at the 4G level to support the consumer, but even greater investment is required for the future, focusing on 5G and beyond.” 

Device affordability is another major barrier to its adoption. The median income in many African countries makes 5G-capable smartphones an unaffordable luxury for the average consumer. Even as prices gradually decline, the reality is that millions still struggle to afford even entry-level 4G devices, keeping next-generation connectivity out of reach for the majority. 

For telecom operators, prioritizing 5G in regions where even 4G coverage remains patchy is neither financially nor logistically viable.  

Sitho Mdlalose, CEO of Vodacom South Africa, tells TechAfrica News, 

“I think the main challenges to rolling out 5G will continue to be the core challenges we face on our network. The cost of rolling out the network is substantial. Vodacom has pledged another 60 billion Rand over the next five years, committing about 10 billion Rand a year to the network, as we have done for the past five years. This investment is crucial, but much of what we have is imported, and the exchange rate plays a significant role in that”  

– Sitho Mdalose, CEO, Vodacom South Africa  

Beyond infrastructure and affordability, the practical use cases for 5G in Africa don’t yet align with the continent’s most pressing connectivity needs. While industries in wealthier nations are exploring 5G-powered smart factories, autonomous vehicles, and AR/VR applications, Africa’s digital priorities remain far more fundamental—mobile banking, e-learning, e-health, and small business digitization. Pushing 5G in markets where basic internet access is still a privilege risks creating a two-tier digital economy, where wealthier urban centers race ahead while rural and underserved communities remain stuck on outdated networks. 

The real danger isn’t just slow 5G adoption but it’s rushing into 5G while millions remain disconnected or struggling on 3G. If digital transformation is truly about inclusion, then the smarter path is clear: maximize the potential of 4G first, then build towards 5G when the ecosystem is ready. Bridging the gap isn’t just about technology—it’s about ensuring that no one is left behind in the digital economy. 

The Smart Approach: Advancing 5G While Strengthening 4G 

Africa’s digital transformation doesn’t need to be an either-or-scenario between 4G and 5G, but rather a careful balancing act that ensures progress without leaving vast swaths of the population behind. To achieve meaningful digital inclusion, we must first expand 4G access, lower the barriers to affordability, and introduce 5G rollouts strategically—in high-demand areas while strengthening the foundation elsewhere.

To effectively tackle affordability barriers, a more coordinated approach is required, with local manufacturing playing a key role. By producing affordable smartphones within the continent, the cost of imports could be significantly reduced, passing those savings directly to consumers. Additionally, programs like Kenya’s Safaricom “LipaLater” financing plan, which allows consumers to pay for devices in instalments, can make 4G smartphones more accessible to low-income users.  

“The affordability of devices is crucial, and at Vodacom, we’ve explored several solutions to address this, including our ‘easy to own’ innovation, which allows consumers to pay daily installments for a smartphone, starting at as little as 8.50 Rand per day. As you pay, it provides both data and the ability to use and unlock the smartphone.” 

– Sitho Mdlalose, CEO of Vodacom South Africa

This approach should be complemented by government and operator subsidies to ensure broader affordability. Moreover, taxes on devices should be reassessed to reduce the financial burden on consumers, and the high cost of data must also be addressed to make mobile internet more affordable for all.  

“If we can solve the challenge around the affordability of 4G devices, we can leapfrog even those customers still on 2G—representing the 44% who have never accessed mobile broadband—straight into 4G. This would allow them to benefit from the infrastructure that’s already developed, helping to close the gap across Sub-Saharan Africa, where there is still a long road ahead in terms of digital access.” 

– Angela Wamola, Head of Sub-Saharan Africa, GSMA 

But device affordability is only part of the equation. 4G infrastructure expansion is crucial for ensuring that no one is left out of the digital revolution. Many rural areas remain disconnected, not because people lack the desire to connect, but because deploying infrastructure in remote locations is cost prohibitive. Governments, alongside telecom providers, must direct more Universal Service Fund (USF) resources toward these areas, encouraging network expansion where it matters most.  Universal Service Funds (USFs) in this case have largely underperformed in many African countries, with substantial portions of allocated resources remaining unspent or misdirected, hindering efforts to expand connectivity in underserved and rural areas where it is needed most.

“Insights from the GSMA report on Universal Service Funds in Africa indicate that the funds are underperforming and have become ineffective tools to close the coverage gap, signaling the need for reforms” 

– Caroline Mbugua, HSC, Senior Director, Public Policy and Communications, Sub-Saharan Africa, GSMA 

There is also the opportunity to repurpose existing 3G spectrum for 4G use, maximizing network efficiency and expanding coverage without requiring entirely new infrastructure. By sharing towers and collaborating with local entities, telecom companies can lower deployment costs, allowing them to focus on connecting more people, not just urban elites. 

Maximizing the potential of 4G is not just about providing faster speeds; it’s about unlocking new economic and social opportunities. In agriculture, farmers can access real-time market prices and weather information via mobile phones, helping them make better decisions. In healthcare, telemedicine can bring urban specialists to rural clinics, providing much-needed expertise where it’s most needed. Education, too, stands to benefit, with digital literacy programs and e-learning platforms helping to bridge the gap for students who would otherwise be left behind. Strengthening 4G connectivity now will set the stage for future growth, ensuring that when 5G does arrive, it doesn’t just cater to a privileged few but builds on a connected base that can fully take advantage of the next wave of digital transformation. 

The approach to 5G must be deliberate, not rushed. Instead of a blanket rollout, targeted deployments in specific areas—such as industrial hubs, ports, or tech campuses—where 5G can drive the most immediate impact should be prioritized. For example, in South Africa, the mining sector has already started testing 5G to enable smart mining solutions and increase safety through real-time data monitoring.

For Africa to truly benefit from the promise of 5G, the path must be inclusive and pragmatic, focused on first ensuring every African is connected to the technologies they need to improve their lives.  

2025 in focus: Africa’s ICT regulatory outlook

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The key regulation issues forecast to be top of mind in 2025 include artificial intelligence, data protection, the digital economy, digital public infrastructure, and competition.

(Source: https://www.menosfios.com/)

As the new year gets underway, technology and its related business environment will be characterized by numerous policy and regulatory discussions around the need to address ongoing and emerging issues, either through revisions to existing frameworks or the formulation of new measures and approaches to market regulation.

With the ongoing evolution of technology and the changing complexion of the marketplace, there is a need to provide an enabling environment in which innovation, consumer and business interests are protected, while at the same time appreciating that such deliberations and resulting actions can never really define any end games for a sector that is constantly in flux.

Some of the key issues that will occupy discussions among policy makers, regulators, civil society and the business community include artificial intelligence (AI), the digital economy, digital public infrastructure (DPI), data protection, and competition.

To a lesser but equally crucial extent, ongoing discussions on improving data protection, social media and cybersecurity frameworks can be expected to continue.

Artificial intelligence

AI regulation was one of the areas of key focus across the continent in 2024.

Two main sides emerged – one was against regulation, reasoning that regulating AI would stifle innovation and slow adoption. The other side looked beyond innovation and adoption and viewing AI through a consumer protection lens, looking at the possible harmful and ethical issues relating to AI.

Related:The ethical considerations of AI in Africa

While there have been huge advances and greater adoption of AI across different sectors – with some already demonstrating tangible benefits – AI has also brought with it unsavory application areas. These include using AI as a tool to enable cybercrime (for financial fraud, phishing and social engineering) as well as in the social and political space with misuse intended to spread falsehoods and misinformation via AI altered text, images or videos.

AI regulation will still be a key focus across the continent in 2025. (Source: Image by DC Studio on Freepik)

Existing laws relating to data protection and privacy, cybersecurity, and misuse of computers and intellectual property, have been useful in the interim as a framework to address some of these areas, but in most cases they are not explicit enough to tackle these problems squarely and with any degree of finality.

At a continental level, AI has been discussed at the Africa Union (AU), where a draft policy was published in 2024, with several countries already making individual pronouncements in the form of sector guidelines.

Looking ahead, the way forward will very likely be paved with soft regulations that take the form of guiding principles to which all stakeholders must adhere, while at the same time continuing to draw on or amend existing regulations.

Related:The changing complexion of e-commerce in Africa

The digital economy

The steady march by business and consumers into the digital sphere, as well as the need to address the requirements of tech-savvy consumers who require new channels to transact, is bringing about the gradual realization of digital economies, with more and more organizations undergoing digital transformation.

One natural consequence of the shift into virtual spaces is the need to ensure tax collection is not affected; authorities are continuing to explore modalities that allow them visibility over the amount of business that happens online. 

This has necessitated different measures to gain visibility over business that happens online. Current measures include the onerous task of conducting audits of business and individuals using different social media platforms like Facebook, Instagram, and TikTok, as well as e-commerce platforms, as well as compelling providers (including telcos, streaming services and platform providers) to add levies to their subscription fees, in order to reduce the administrative load on revenue authorities.

Related:Cybersecurity: The big picture in Africa

In some cases, sizing up the digital space has involved working with payment gateway operators who have good visibility over such transactions between businesses and consumers.  

Broadly speaking, the legal framework on which digital economies can be enabled includes laws, polices and guidelines that touch on taxation, data protection and privacy, intellectual property and social media use.

During 2024, several African countries adopted different approaches to handing the digital economy, and it can be expected that, during 2025, these measures and existing laws will undergo further streamlining, amendment and harmonization.

Digital public infrastructure (DPI)

While DPI is still largely nascent, the push by governments and multilateral development agencies (whose ambitions relate to closing the digital divide and supporting transparency, among other areas) is something that will merit a review of existing laws.

Many have bearing on how DPI can be enabled since DPI inherently raises concerns about data protection, fraud, freedom of information, mobile payment regulation, digital identities and infrastructure sharing. 

Thus, it can be expected that discussions on implementing DPI will pick up pace as different stakeholders explore modalities on how this can be leveraged to deliver services to citizens. 

Competition

The move by satellite providers in different countries into the connectivity space is being met with some degree of consternation by some local Internet service providers and mobile operators, who mostly claim it makes the playing field uneven for them, with some indicating that such players are not subjected to the same regulatory oversight as local players.

In some cases, local players are the ones who have taken the initiative to strike deals with satellite operators who offer direct to mobile connectivity arrangements that allow them to plug voice and data coverage gaps and reduce their infrastructure spending.

Between 2023 and 2024, players like Starlink gradually increased their footprint across Africa, though it has not been easy sailing in some markets where regulations either require local ownership or the requirement to work with channel partners through whom authorities can gain visibility on operations for the sake of taxation and consumer protection issues.

It should be noted that, at the outset, satellite players were indulged on the premise that they could help address rural coverage. 

However, as has been noted in many countries, urban areas have been the focus for the simple reason that affordability is an issue in most rural areas. 

As such, most new subscribers are in urban areas, which has unseated that premise about closing the rural digital divide. 

Between 2023 and 2024, Starlink gradually increased its footprint across Africa but also faced challenges. (Source: Starlink)

In 2025, it can be expected that regulators will move to respond to concerns by local players, by introducing new licenses as well as ensuring such players are compliant with pricing guidelines set out.

It can also be expected that discussions by the International Telecommunications Union (ITU) on spectrum, rural connectivity, etc. may have some bearing on how these players operate.

Data protection

In 2024, only 36 out of 54 African countries had enacted data protection laws.

At a continental level, despite the Malabo Convention (on cybersecurity and data protection) being adopted more than a decade ago, when it came into force on June 8, 2023, only 15 AU countries had ratified it, limiting its continental credibility. This itself hampers efforts at harmonizing data protection laws as well as limiting collaboration on cybersecurity.

Data protection concerns keep morphing and will remain on the horizon for quite a while. 

Ongoing digital transformation, including by government entities, coupled with new business channels, mobile applications, and know-your-customer (KYC) principles by financial institutions are among other areas that will keep data protection in focus.

It can be expected that this convention will be reprised at the AU during 2025 as individual countries continue to address data protection.

Spectrum costs

It should be expected that spectrum costs will be among the areas up for discussions, in some cases based on lessons learned from 5G spectrum auctions for which many operators have yet to realize returns on investments. 

Therefore, pricing at auctions may require a review based on market realities and the potential exploitation of spectrum for different applications.

The spectrum gravy train may not have dried up yet, but it has certainly slowed down. 

Cybersecurity

Just like data protection, cybersecurity is a constant feature in the ICT landscape in Africa. 

With more and more cyberattacks registered in 2024, a good part of discussions on policy and regulation will invariably feature cybersecurity in 2025 because the risks are not bound by borders and threat actors can be either in African countries or outside of them.

The need to enable collaboration across the continent and globally will underpin discussions on cybersecurity in 2025.

About the Author

(Source: Image by DC Studio on Freepik)

Francis Hook

Africa ICT Analyst, Connecting Africa

Francis currently works independently undertaking ICT research and consulting projects across Africa.