African digital economy and infrastructure development

The digital economy in Africa is characterized by significant growth potential alongside persistent infrastructure challenges. Projections indicate that Africa’s mobile sector could generate $2.4 trillion in economic value by 2025, supporting approximately 13 million jobs and driving substantial tax revenue. Future developments are expected to shift from basic network construction toward AI-driven services and 5G expansion.

In specific markets like Morocco, economic activity is increasingly mobile-first, requiring digital platforms to optimize for small screens and low data consumption to remain commercially viable. However, a significant digital divide remains, with an estimated 900 million people across the continent lacking internet connectivity due to high costs and insufficient broadband and mobile telecommunications infrastructure.

In Malawi, a recent GSMA report highlights a stark usage gap: while mobile broadband coverage is significant, only 12.5% of the population utilizes mobile internet, leaving 80% of those within coverage areas unconnected. Minister of Information and Communications Technology Shadric Namalomba noted that digitalization currently contributes 6.5% to Malawi’s GDP, but this could reach 13% by 2030. Closing this gap could potentially unlock MWK 1.1 trillion in economic value and create 490,000 jobs.

Barriers to adoption in Malawi include high smartphone costs, limited digital literacy, and a lack of foreign currency for network operators to upgrade equipment. To address these issues, the GSMA has proposed designating telecommunications as “critical national infrastructure” to facilitate foreign exchange access, alongside calls for a spectrum roadmap and longer-term licenses to encourage investment.