Impact of Africa’s Mobile Internet Revolution Photo: Maureen Didde

Mobile internet is genuinely improving the lives of people in Africa A recent survey in Kenya, Nigeria, South Africa and the UK showed that access to the mobile internet has a life changing impact on majority of respondents. Mobile internet has made a “great improvement” on my life 62% 61% 41% Kenya Nigeria South Africa UK Source: On Device Research, survey of mobile internet users Countries: Kenya, Nigeria, South Africa, n=1500, October 2014

O The importance of mobile (internet) Step change vs incremental improvement – for many African’s mobile is the way to access online services and resources. It is impossible to overestimate the impact that mobile phones and the mobile internet is having on the continent. In comparison, for people in the UK mobile was just another way to access info and services already available on their computers.

O This report presents findings from research with 2,000 mobile internet users in Kenya, Nigeria, South Africa and the UK. Key aspect of the study was to compare the effects of mobile internet between developing and developed markets. The study was conducted by On Device Research, a mobile research company, in October 2014 with a representative sample of mobile internet users in each country.

On Device Research uses the mobile internet to gain access to consumer opinions at any time or place. The company has conducted over 20 million surveys in 75 countries, and has offices in London, Dubai and Singapore.

UK Kenya South Africa Nigeria Population: 64 million GPD per capita: $39,350 Kenya Population: 44 million GDP per capita: $994 South Africa Population: 53 million GDP per capita: $6,617 Nigeria Population: 155 million GDP per capita: $3,010

Popula'on 44 million 155 million 53 million Internet penetra'on 47% Kenya Nigeria South Africa Popula'on 44 million 155 million 53 million Internet penetra'on 47% 38% 49% Mobile penetra'on 70% 72% 133% Smartphone penetra'on 31% 29% 47% Urban dwellers 25% 50% 62% Sources: GSMA Intelligence, Internet World Stats, Strategy Analytics, World Bank

How exactly has mobile internet “greatly improved” people’s lives in Africa? Easier to keep in touch with friends and family # Easier to pay bills ! Better access to education w More connected to the world <S > Better access to entertainment (music, games, movies) Source: On Device Research, survey of mobile internet users Countries: Kenya, Nigeria, South Africa, n=1500, October 2014

Brits, in comparison, named only 2 things that have “greatly improved” their lives Easier to keep in touch with friends and family n Easier to find places using maps Source: On Device Research, survey of mobile internet users Countries: Kenya, Nigeria, South Africa, n=1500, October 2014

Africans rated 14 different attributes with an average of 4 or higher (on a 5-point scale) while Brits rated only two as having such a great impact on their lives. Africa UK Better access to education 4.42 3.70 I feel more connected to the world 4.41 3.86 Easier to keep in touch with friends and family 4.40 4.01 Better access to entertainment (music, games, movies) 4.38 3.95 Payments to businesses / pay bills 4.36 3.52 Easier to follow news 4.34 3.92 Send money to someone 4.29 3.71 Easier to find places using maps on the phone 4.28 4.19 Meeting new people and making friends 4.20 3.81 Easier to find health related info 4.15 3.89 Find work related info 4.14 3.45 Send airtime to someone 4.03 2.48 New ways to do business 4.02 3.74 Check bank balance 3.99 3.77 Source: On Device Research, survey of mobile internet users Countries: Kenya, Nigeria, South Africa, n=1500, October 2014

Access to information provides a real improvement to people’s lives % of people that stated these provided a “great improvement” 66% 68% 62% 58% 60% 55% 56% 57% 50% 44% 33% 28% Online learning / education Find work related info Nigeria South Africa UK Use health & medical sites / apps Kenya Source: On Device Research, survey of mobile internet users Countries: Kenya, Nigeria, South Africa, n=1500, October 2014

The introduction of the mobile internet in Africa is far more transformative than most people in modern countries realise. It’s not just a slight improvement, it’s a step change. Alistair Hill CEO, On Device Research

Playing catch up n Data speeds, cost, and network coverage combined with lower smartphone penetration means that use of maps, video and other data heavy and complex services, is significantly lower than in the UK. Maps available for some African countries aren’t exactly great either and the impact on usage is immediate.

On average, only 25% use maps for navigating in Africa (44% in the UK) 36% 20% 18% Kenya Nigeria South Africa UK Source: On Device Research, survey of mobile internet users Countries: Kenya, Nigeria, South Africa, n=1500, October 2014

However, as people upgrade to smart- phones the usage of maps jumps up! Maps usage by device type 48% 42% 28% 14% 14% 12% Kenya Nigeria South Africa Feature phone Smartphone Source: On Device Research, survey of mobile internet users Countries: Kenya, Nigeria, South Africa, n=1500, October 2014

O N Similar jump is seen in other activities as people upgrade to 66% 60% Using search Similar jump N is seen 47% 48% 45% 44% in other Watching video clips activities 32% as people upgrade to smartphones 14% Feature phone Smartphone Source: On Device Research, survey of mobile internet users Countries: Kenya, Nigeria, South Africa, n=1500, October 2014

Biggest th<ing on mobile in Africa? Listening to music!

Most popular activities on mobile Download / listen to music 67% Social media 54% Search for information 52% Take photos Send airtime 47% Play games 46% Instant messaging Check email 45% Watch short video clips 38% Local and global news 36% Follow sports news 34% Listen to radio 33% Online learning 30% Find jobs 28% Send money 27% Source: On Device Research, survey of mobile internet users Countries: Kenya, Nigeria, South Africa, n=1500, October 2014

Online learning / educa5on Older people 65% Instant messaging Find jobs News Listen to radio 60% Email Search Higher % of women Watch video Take photos Send air5me % Over 25 55% Social media Play games 50% Listen to music Online learning / educa5on 45% Size of the Bubble = Popularity 27% 29% 19% 21% 23% 25% % Female Source: On Device Research, survey of mobile internet users Countries: Kenya, Nigeria, South Africa, n=1500, October 2014

Mobile internet beats TV… : Mobile internet beats TV… Advertisers take note!

Mobile internet has become the largest media channel in Africa Q. How often do you use the following media channels? 7% 13% 16% 26% 17% 34% 44% 19% 79% 16% 63% 19% 49% 34% 24% Mobile internet TV Radio Desktop internet Less often Never Read newspaper Daily Several times a week Source: On Device Research, survey of mobile internet users Countries: Kenya, Nigeria, South Africa, n=1500, October 2014

Usage of mobile banking or payment services 75% 63% 58% Kenya Nigeria South Africa UK Source: On Device Research, survey of mobile internet users Countries: Kenya, Nigeria, South Africa, n=1500, October 2014

Mass adoption of mobile money South Africa is lagging a bit but there’s still still significant adoption 56% 51% 49% 42% 37% 35% 35% 32% 24% 25% 21% 17% 18% 16% 16% 16% 14% 10% 12% 11% 13% 9% 10% 7% Send airtime to Check bank balance Send money to Payments to Buy or sell things with None of these someone businesses / pay bills other people Kenya Nigeria South Africa UK Source: On Device Research, survey of mobile internet users Countries: Kenya, Nigeria, South Africa, n=1500, October 2014

Africa –wwho’s online on their phone?

Nearly half of respondents only or mainly go online using their phones Q. How often do you use internet on a computer? 15% 22% Daily 45% only or mostly go online with their phones Several times a week Infrequently Mobile-only internet users 40% 23%

46% went online for the first time on their phone in the past 2 years Q. When did you first use your phone for online services? 30% 29% During the last year 1-2 years ago 2-5 years ago Over 5 years ago 17% 24%

Mobile internet users in Africa reflect the population – they’re very young 52% 44% 42% 45% 38% 38% 13% 6% 7% 7% 4% 4% 16-24 25-34 35-44 45+ Kenya Nigeria South Africa

Find out more + request data in Excel If you’d like to take a deeper look at the findings (including additional questions, data points and gender splits), then get in touch! Siim Teller, Head of Marketing siim@ondeviceresearch.com @teller +44 20 7278 6627

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