In the past years, sub-Saharan Africa has exhibited rapid growth in the telecommunication sector. Chichester et al. (2017) depict that the citizens have increased access to commodities, information, and other services. Initially, marketers believed that Africa was a hostile destiny for investment: the poverty level was too high, carrying many risks when it came to business ventures.
Eventually, this has changed with a vast transformation being experienced in the telecommunication industry. Between the years 2000 and 2011, the number of mobile phone subscribers had increased to over 650 million, driving the average annual growth to 41% (Chichester et al., 2017). The rapid growth has contributed to increased economic growth, which has increased the continent’s Gross Domestic Product. Increased economic advancement increases employment opportunities, standards of living as well the value of the products and services that are offered.
For most years, credit and debit cards have dominated the United States and Latin America economy. Over 50% of the population is contented with the current modes of payment. Ninia (2019) explains how conservancy’s nature in the two states allows them to adopt the advanced forms of debit and credit cards compared to advanced mobile payment methods. Additionally, in the two states, mobile payment services are phone-specific. For instance, persons with Apple iPhones cannot use Google Pay while Android phone users cannot use Apple Pay. These limitations leave people opting for company-specific apps such as Walmart and Starbucks that give them a chance to download them onto any phone model.
Investors can see outside the box and treat Africa as a unique continent without comparing it to the developed nations. Keegan and Green (2017) depict that half of the African population spends $1.25 in a single day. However, this has changed with a vast rise of the middle-class population that spends approximately $2-20 daily (Keegan & Green, 2017). The increase in middle-income earners has consequently increased demand for telecommunication products and services. Hence, telecommunication companies could invest in Africa and earn lucrative profits.
Competition among the service providers is key to the diversification of the quality and services offered by these companies. For example, in Kenya, Airtel Kenya is popular for providing low-cost charges on voice calls and short messages (Keegan & Green, 2017). On the other hand, Safaricom focuses on providing the best network coverage and secure mobile banking services such as M-Pesa.
The “Cheetah Generation” in Africa comprises the African young generation who are working hard to ensure that they overcome the challenge of corruption and unemployment in their countries. The “Cheetah Generation” has the ability to thrive and foster economic growth and sustainable industrialization in Africa. According to Kapfudzaruwa (2018), 70% of the African residents are youths, meaning that they cover most of the population. Over time, Africa has experienced increased and improved levels of education. As a result, the nation is enlightened and equipped with the essential skills and resilience to build a promising future for itself. The “Cheetah Generation” is exploiting the untapped informal sectors, which generate income opportunities for the youths (Kapfudzaruwa, 2018). Rampant economic growth in Sub-Saharan Africa has necessitated improved access to a wide range of investment opportunities for the cheetahs.
Chichester, O., Pluess. J. D., andLee, M. (2017). Women’s economic empowerment inSub-Saharan Africa: Recommendations for the mobile telecommunications sector.BSR Report. Retrieved March 8, 2021, from https://www.bsr.org/reports/BSR_Womens_Empowerment_Africa_Mobile_Telecommunications_Brief.pdf
Kapfudzaruwa, F. (2018). Conclusion: The future of African youth entrepreneurship and sustainable industrialization.Spear Media Press, 204-225. Retrieved March 8, 2021, from https://www.researchgate.net/publication/344692000_Conclusion_The_Future_of_African_Youth_Entrepreneurship_and_Sustainable_Industrialisation
Ninia, J. (2019). The United States lags behind China in adopting mobile payments. Cornell University. Retrieved March 8, 2021, from https://business.cornell.edu/hub/2019/10/23/united-states-china-mobile-payments/