Africa’s dynamic telecommunications sector is preparing for a prosperous 2024 as it expands its operations and diversifies its services to meet the needs of an increasingly tech-savvy customer base.
Projections for the industry indicate a $2.24 billion growth in the African telecom sector between 2020 and 2024. This growth will be driven by the deployment of high-speed 5G connectivity and an expanding range of services, particularly in the financial sector.
After engaging with telecom executives across East, West, and Southern Africa, several common challenges have emerged. Telcos are striving to secure their current revenue streams by improving visibility over their business-to-business (B2B) partners. Additionally, there is a focus on introducing customer-facing services and innovations to ensure long-term profitability and stay ahead of emerging competitors.
Key Trends for African Telcos in 2024:
- Digitalization Enhances B2B Visibility:
- Telco markets in Africa heavily rely on dealers and resellers, but the lack of digitalization hampers visibility over B2B channels.
- New technology platforms can improve efficiency and visibility downstream, giving telcos a strategic advantage through their dealer channels.
- Incentives like discounts can encourage dealers to embrace digitalization, unlocking revenue opportunities.
- Innovation Drives Improved Customer Experiences:
- Digitalization enables telcos to offer a wider range of products and services, enhancing the customer experience.
- Integration of tailored financial services, mobile money, and innovations like Buy Now, Pay Later (BNPL) at the point of sale ensures a seamless customer experience.
- Compliance with regulatory requirements, especially Know Your Customer (KYC), is crucial for delivering new services.
- eSIM Adoption Gains Momentum:
- The transition from feature phones to smartphones is accelerating the adoption of eSIMs.
- Younger users, attracted to social media and Africa’s growing e-commerce sector, will drive the growth of eSIMs.
- Telcos are expected to launch extensive promotional campaigns on social media to entice younger users to switch to smartphones, enabling the delivery of a wider range of revenue-generating services.
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As African telcos navigate the balance between profitability and revenue protection, embracing digitalization, fostering innovation, and capitalizing on eSIM adoption will be crucial for ensuring sustained success in 2024 and beyond.
