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

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

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

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  1. Mobile Phones & Economic Development in AfricabyJenny C. Aker & Isaac M. Mbiti Brett White

  2. 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)

  3. 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)

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

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

  6. Adoption & Use of Mobile Phones

  7. 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

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

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

  10. 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

  11. QUESTIONS?

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