The advent of 5G connectivity promises to be the Africa’s most transformative digital wave yet, reshaping economies, revolutionising industries, and catapulting nations into a future once thought distant. With 5G subscriptions expected to increase fiftyfold in Africa by 2028, according to the Ericsson Mobility Report 2023, the economic implications are staggering. The African Union’s Digital Transformation Strategy estimates that a fully developed digital economy, fuelled by 5G, could contribute up to $712 billion to Africa’s GDP by 2050, significantly boosting productivity and innovation.
Over the last five years, mobile operators in Africa have invested nearly $45 billion in capital expenditure—primarily on deploying and expanding 4G networks. This includes investments in the latest LTE-Advanced technologies, such as multiple-input multiple-output (MIMO), to increase coverage and capacity without the need for additional sites. Operators will progressively shift investment towards 5G as they ramp up preparations for its rollout.
READ ALSO: Is Broadband and 5G Transforming Africa’s Economies?
5G adoption rates are projected to grow rapidly in the coming years. According to GSMA Intelligence forecasts, total 5G connections will surpass the two-billion mark by the end of 2025 and reach approximately 5.3 billion by 2030.
The introduction of 5G technology in Africa is not merely an upgrade in internet speed; it is an economic enabler. Faster connectivity, lower latency, and increased bandwidth will fuel the expansion of e-commerce, telemedicine, financial technology, and the Internet of Things (IoT). A report by GSMA Intelligence suggests that 5G could contribute an estimated $26 billion to Africa’s economy by 2030, unlocking new business models and revenue streams.
Separately, GSMA Intelligence forecasts that licensed cellular low-power wide-area (LPWA) connections will reach 2.3 billion by 2030, laying the foundation for massive IoT expansion, as both long-term evolution for machines (LTE-M) and narrowband IoT (NB-IoT) hold long-term status within 5G standards.
South Africa has been a frontrunner in 5G adoption, with MTN and Vodacom leading the rollout across urban centres and Rain deploying 5G fixed-wireless access services to homes and businesses. Nigeria’s expansion, spearheaded by MTN and Mafab Communications, has seen over 100 5G sites deployed in Lagos, Abuja, and other major cities, promising widespread access in the coming years. Kenya, Ghana, and Egypt are also investing heavily in 5G infrastructure, signalling a shift towards digital economies.
The Connectivity Highway
Despite 5G’s potential, Africa continues to grapple with critical infrastructure gaps. While urban centres are experiencing rapid deployment, rural areas remain digitally isolated due to high costs and limited infrastructure. The cost of 5G-compatible devices remains a barrier, with smartphones averaging $300–$500—well above the affordability threshold for many Africans.
To address these challenges, governments and telecom operators are investing in fibre-optic backbones, low-orbit satellite solutions, and innovative financing models. In Nigeria, for example, the National Broadband Plan 2020–2025 aims to increase broadband penetration to 70%, paving the way for wider 5G adoption. Meanwhile, companies such as Starlink, backed by SpaceX, are exploring satellite-based solutions to bridge the digital divide across remote regions.
5G’s Impact on Industries
Industries across Africa are poised to reap massive benefits from 5G adoption. The fintech sector, already a backbone of African economies, will experience an explosion in mobile banking, blockchain transactions, and AI-driven financial services. Mobile money transactions in Africa surpassed $800 billion in 2023, and 5G is expected to further accelerate this growth.
In agriculture, smart farming technologies powered by 5G will enhance productivity through real-time weather monitoring, automated irrigation, and drone-assisted farming. Countries such as Kenya, Rwanda, and South Africa are piloting precision agriculture projects that leverage 5G connectivity to optimise yields and minimise waste.
The healthcare industry stands to be revolutionised, with telemedicine projected to grow by 25% annually in Africa. 5G will enable remote surgeries, AI diagnostics, and real-time consultations, significantly improving healthcare access in rural regions. Ethiopia, for instance, has launched digital health initiatives using 5G connectivity to link rural health centres with top-tier hospitals.
Policy and Investment Roadblocks
While the future of 5G in Africa is promising, policy bottlenecks and high spectrum costs pose significant challenges. Licensing fees for 5G spectrum have been a contentious issue, with operators in countries such as Nigeria and Kenya calling for more affordable and transparent regulations. The high cost of deploying 5G networks, estimated at $60 billion continent-wide, is another major hurdle, necessitating public-private partnerships and international funding.
Despite these challenges, global investors are showing keen interest in Africa’s digital economy. Companies such as Huawei, Ericsson, and Nokia have signed agreements with African governments to expand 5G coverage.
The Verdict
The rise of 5G in Africa is akin to a high-speed train racing towards economic transformation. While hurdles exist, the potential outweighs the challenges. By 2030, Africa’s digital economy could be worth $180 billion, and 5G will be at the heart of this revolution. The transition is not just about faster internet; it is about redefining economic possibilities, empowering industries, and ensuring Africa’s place in the global digital economy. The future is fast, and Africa is ready to ride the wave.
With an estimated 500 million 5G users projected across Africa by 2035, the continent is not merely catching up but redefining its economic trajectory. Governments, investors, and tech giants must now work together to ensure that this revolution is inclusive, sustainable, and truly transformative.
