Mobile Phones & Economic Development in Africa by Jenny C. Aker & Isaac M. Mbiti Brett White

Quotes “In 10 short years, what was once an object of luxury and privilege, the mobile phone, has become a basic necessity in Africa.” - Paul Kagame, President of Rwanda “A device that was a yuppie toy not so long ago has now become a potent force for economic development in the world’s poorest countries.” – The Economist (2008)

Evolution of Mobile Phone Coverage & Adoption in Africa African mobile phone coverage 1999 – 10% 2008 – 60% (477 million) 11.2 million sq. km Mobile phone leapfrogged landline Poor roads Vast distances Low population densities Base stations (5-10 km radius)

Number of Cell Phone Subscribers & Cell Phone Coverage in Sub-Saharan Africa, 2000–2008

Number of Mobile Phone Subscribers as a Percentage of the Population, 2008

Adoption & Use of Mobile Phones

Mobile Phones Effect on Economic Outcomes in Africa Improves access to and use of information Improves firms’ supply chain management Creates new jobs Reduces households’ exposure to risk

How Mobile Phones Can Provide Services and Innovative Development Projects Disseminating agricultural price information Monitoring health care Transferring money in poorer countries

Evolution of Cell Phone Market Structure in Africa, 1995–2009

Conclusion Significant coverage growth over past decade Impact of mobile application and services will continually expand (i.e. 3G & 4G) Prices of headsets & airtime will continue to fall Future research – evaluate benefits of mobile phones throughout Africa

QUESTIONS?