What lies in store for African telecommunications companies in 2024?

 

Africa’s thriving telecoms industry is preparing for a successful 2024 by growing and broadening its offerings to meet the needs of a clientele that is becoming more and more tech aware.

According to industry projections, the telecom market in Africa is expected to increase by a significant $2.24 billion between 2020 and 2024. The introduction of fast 5G connection and a growing range of services, particularly in the financial industry, will drive this expansion.

After speaking with telecom executives in East, West, and Southern Africa, a number of recurring issues have come up. Telcos are working to improve insight into their business-to-business (B2B) partners in an effort to protect their current revenue streams. Additionally, a deliberate attempt is made to implement innovations and customer-facing services in order to guarantee long-term profitability and keep a competitive advantage over new competitors.

Important Trends for 2024 in African Telcos:

1. Digitization Improves B2B Visibility: 

Although dealers and resellers play a major role in the telecom markets in Africa, a lack of digitization limits visibility across B2B channels. Through their dealer channels, new technology platforms can give telcos a strategic edge by improving efficiency and visibility downstream. Discounts and other incentives might encourage dealers to adopt digitalization and open up new revenue streams.

2.Better Customer Experiences Are Driven by Innovation: 

Digitalization gives telcos the ability to provide a wider choice of goods and services, which improves the customer experience. The smooth client experience is ensured by the integration of mobile money, specialized financial services, and innovations like Buy Now, Pay Later (BNPL) at the time of sale. Providing these new services depends on regulatory compliance, including Know Your Customer (KYC) regulations.

3. E-SIM Uptake Accelerates:
The popularity of eSIMs is accelerating due to the shift from feature phones to smartphones. The eSIM market in Africa will be driven by younger consumers drawn to social media and the expanding e-commerce industry in the continent. In order to encourage younger consumers to convert to smartphones and allow for the delivery of a wider range of services that generate income, telcos are anticipated to initiate massive social media marketing operations.

In order to ensure continuous success in 2024 and beyond, African telcos will need to embrace digitization, stimulate innovation, and capitalize on the proliferation of eSIMs as they navigate the difficult balance between profitability and revenue protection.