Africa’s Telecom Market: 3 Surprising Catalysts Driving Growth

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Africa’s telecom market is on a sharp rise. 

In Southern Africa alone, communication services generated $17 billion in 2024, with annual growth projected at 2.3% through 2028. Beyond the numbers, telecom companies are connecting 19 million unbanked people through mobile money and addressing power shortages with renewable energy solutions, building an ecosystem primed for global partnerships. 

Curious about the forces behind this progress? Let’s dive in.

The current conditions of Africa’s Telecom Market in numbers

• Market value: The African telecom market has grown by $2.42 billion from 2020 to 2024, driven by steady investments in 4G, the initial roll-out of 5G, and expanded services.

• Smartphone adoption: Africa’s smartphone market surged by 24% in early 2024, driven by the growing demand for affordable devices. Nigeria led the way with a 42% increase in smartphone shipments year-over-year, while South Africa and Egypt saw growth of 19% and 39%, respectively, boosted by government support and device financing options.

• Service diversification: Telecom companies rapidly diversify into mobile financial services, data solutions, and additional value-added services. Mobile money drives double-digit revenue growth for companies like Airtel Africa, which saw a 29.6% increase in mobile money revenues in 2023. 

• 4G/5G deployment: By the end of 2022, 4G adoption in Africa accounted for 35% of all mobile connections. While 5G expansion is still limited across most of the continent, early deployments are underway — particularly in South Africa, where 5G coverage reached 41% of the population in 2023. The region's cautious approach to 5G stems from high infrastructure and device costs, but investments are gradually increasing, especially in urban areas where demand for faster connectivity is rising.

  

  Source: GSMA Intelligence

  
  

  3 Factors Driving Steady Growth in Africa’s Telecom Market

  Factor 1. The Expansion of Telecom-Led Financial Inclusion

  African telecommunications diversify their service portfolio and focus on financial services particularly. 

  Let’s take MTN’s MoMo app. It connects millions of unbanked individuals to core financial services, opening doors to savings, payments, and lending without needing a bank account. MoMo users can send money to 200+ million wallets, maintained by 39 partners, across 24 African countries. Its transaction value jumped from $76 billion in 2018 to $204 billion in 2022. 

“By expanding our services to new markets and corridors, we are not only enabling individuals to support their families across borders but also driving economic empowerment and fostering greater financial resilience within communities.”

Kagiso Mothibi, 

CEO, Fintech @ MTN SA

The expansion doesn’t stop at basic transactions. Telecom operators also offer non-banking services like insurance and credit. 

Vodacom, for instance, partnered with Old Mutual to launch VodaLend Personal Loans, offering South Africans access to personal loans up to R250,000, which are processed and disbursed within 24 hours. 

MTN also expanded its offerings through a strategic alliance with Sanlam, which provides a suite of insurance products tailored for mobile users across Africa. This collaboration has allowed MTN to provide life and funeral insurance options to millions who previously had limited access to such services. MTN and Sanlam aim to reach over 30 million policyholders by 2025, with products designed to meet everyday risks, from health to asset protection. 

Factor 2: Power Challenges & Green Energy as a Business Imperative

Africa’s power crisis directly challenges telecom service continuity. Inconsistent electricity access is common due to limited infrastructure, frequent outages, and reliance on costly diesel generators in remote or underserved areas. For example, 600 million people in sub-Saharan Africa live without electricity, and millions more face limited or unreliable access.

Countries like Nigeria, Ghana, and Kenya also struggle with power shortages, forcing telecom companies to rely on alternative power sources. These widespread challenges have led many telecom operators across Africa to invest in solar and hybrid energy systems, ensuring consistent service and reducing diesel-related operational costs.

For example, Orange has been expanding its solar-powered network in Guinea, Madagascar, Sierra Leone and other African countries to achieve net zero by 2040 and ensure stability where power availability is often limited to 6-12 hours daily. This shift is part of a broader partnership with the European Investment Bank, which has supported Orange with $30 million to improve energy resilience and reach underserved areas through off-grid solar towers.

“Orange has 1 500 sites across Guinea, and covering all of it and reaching the population of 12.4 million is a challenge in itself. These sites bring tremendous challenges for fuelling and preventative maintenance. Orange is able to use the photovoltaic panel-powered masts to install new off-grid sites to boost the mobile network, which will improve coverage in terms of reach in underserved rural areas, and strength in urban ones. Through this operation, we will avoid burning 10.7 million litres of diesel.”

Eli Mattar, 

CSO, IPT PowerTech Group

Similarly, GreenWish Partners has committed $800 million to install solar-powered telecom towers across Africa. It allows telecom sites to reduce diesel reliance by 60% or operate entirely on solar in certain cases, lowering operational costs significantly. GreenWish’s approach combines solar panels with battery backups, providing uninterrupted service while decreasing greenhouse emissions. 

Factor 3. Corporate Social Responsibility (CSR) as a Catalyst for Brand Loyalty

CSR initiatives in education and community development are the part of African telcos growth strategy. Companies have invested millions in digital literacy programs, STEM scholarships, and local school support, showing that telecom companies are about creating opportunities.

For example, AXIAN Telecom partnered with the MIT Africa Program to support STEM education in Ivory Coast. It funds the MIT-Africa IMO bootcamp, preparing students for maths competitions like the International and Pan-African Math Olympiads. Through this initiative, AXIAN aims to increase visibility for African talent in STEM fields and empower local youth with critical skills needed for the digital economy.

“We are thrilled to provide support to the MIT Africa IMO program in Ivory Coast and we intend on broadening the partnership to include the countries where AXIAN Telecom operates. This initiative not only aligns with our CSR goals but also reinforces our commitment to nurturing young talent and promoting excellence in STEM education in Africa. We believe education changes lives and we are honoured to be part of a transformative journey.”

Stéphane Oudin,

CEO, AXIAN Telecom

Key Takeaways

• Telecoms integrate mobile financial services, renewable energy, and digital education to reach millions who were previously underserved.

• Investments in solar-powered networks help telecom companies lower costs and provide consistent service in areas with unreliable power, supporting sustainable growth.

• African telecom service providers consider CSR initiatives in STEM and digital literacy as a way to equip young Africans with essential skills for a digital economy, fostering local talent and innovation.

• Scaling 5G and enhancing rural access remain key hurdles, requiring strong partnerships and targeted investments.

• Strategic investments, impactful partnerships, and a commitment to social change drive the African telecom market forward, making it a leader in economic development and social progress.