{"id":2990,"date":"2013-11-20T16:49:02","date_gmt":"2013-11-20T21:49:02","guid":{"rendered":"https:\/\/dev.epictranslations.com\/?p=2990"},"modified":"2017-11-10T16:38:01","modified_gmt":"2017-11-10T16:38:01","slug":"lions-go-digital-the-internets-transformative-potential-in-africa","status":"publish","type":"post","link":"https:\/\/dev.epictranslations.com\/spa\/lions-go-digital-the-internets-transformative-potential-in-africa\/","title":{"rendered":"Lions go digital: The Internet\u2019s transformative potential in Africa"},"content":{"rendered":"

Following a decade of rapid urbanization and strong economic growth, Africa is going digital. While just 16 percent of the continent\u2019s one billion people are online, that picture is changing rapidly.<\/p>\n

Evidence of what is to come can already be seen in Africa\u2019s major cities, where consumers have greater disposable income, more than half have Internet-capable devices, and 3G networks are up and running. Significant infrastructure investment\u2014for example, increased access to mobile broadband, fiber-optic cable connections to households, and power-supply expansion\u2014combined with the rapid spread of low-cost smartphones and tablets, has enabled millions of Africans to connect for the first time. There is a growing wave of innovation as entrepreneurs and large corporations alike launch new web-based ventures.<\/p>\n

Africa\u2019s Internet opportunity<\/h3>\n

Today, Africa\u2019s iGDP\u00a0(which measures the Internet\u2019s contribution to overall GDP) remains low, at 1.1 percent\u2014just over half the levels seen in other emerging economies. But there is significant variation among individual countries. Senegal and Kenya, though not the continent\u2019s largest economies, have Africa\u2019s highest iGDPs, and governments in both countries have made concerted efforts to stimulate Internet demand.<\/p>\n

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The Internet\u2019s contribution to Africa\u2019s overall GDP is low. Senegal and Kenya, though not the continent\u2019s largest economies, are in the lead.<\/h4>\n

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By 2025, Africa\u2019s iGDP should grow to at least 5 to 6 percent, matching that of leading economies such as Sweden, Taiwan, and the United Kingdom. However, if the Internet achieves the same kind of scale and impact as the spread of mobile phones in Africa, iGDP could account for as much as 10 percent, or $300 billion, of total GDP while producing a leap forward in economic and social development.<\/div>\n<\/div>\n

Under this scenario, increased Internet penetration and use could propel private consumption 13 times higher than current levels. Demographic trends\u2014including urbanization, rising incomes, and a huge generation of young, tech-savvy Africans\u2014will drive this growth.<\/p>\n

More than half of urban African consumers already have Internet-capable devices. Basic smartphones have already fallen below the \u201ctipping point\u201d of $100 per unit, and companies are introducing new affordable models specifically geared to the African market. Africa\u2019s smartphone penetration, currently at 2 to 5 percent, could reach 50 percent in leading countries and 30 percent overall. This translates into 300 million new smartphones being sold in Africa in the decade ahead. PC, laptop, and tablet penetration could double, to 40 percent.<\/p>\n

Most countries have strategies for information communications technology in place. If governments fully implement these plans, move key processes such as benefit payments and tax filing online, and introduce digital health and education initiatives, Africa\u2019s public-sector spending on Internet-related initiatives could rise sharply by 2025. Private investment, too, is likely to increase significantly as telecommunications operators continue to build out networks and as more companies begin digitizing their operations.<\/p>\n

Transforming six key sectors<\/h3>\n

The Internet\u2019s greatest impact in Africa is likely to be concentrated in six sectors: financial services, education, health, retail, agriculture, and government. Technology-related productivity gains in these sectors could reach $148 billion to $318 billion by 2025, and large populations stand to benefit as a result.<\/p>\n