ATU, GSMA Partner to Grow Africa’s $240 Billion Telecom Revenue Through Policy Reforms
Africa’s telecom industry generates more than $240 billion annually, but stronger policies and increased investment could unlock even greater economic value. That was the key message as the African Telecommunication Union (ATU) and the Global System for Mobile Communications Association (GSMA) deepened their partnership to strengthen the continent’s digital economy.
The two organisations announced their renewed collaboration during the ATU/GSMA Workshop on “Advancing Africa’s Digital Future: Data, Connectivity and Satellite Regulation” held in Abuja. Their goal is to help African countries remove regulatory barriers, improve digital connectivity, and expand the industry’s economic contribution.
ATU GSMA Telecom Revenue Partnership Focuses on Growth
Speaking at the workshop, ATU Secretary-General John Omo said Africa’s mobile communications sector already contributes more than $240 billion to the continent’s economy. He added that better regulatory policies and stronger investment frameworks could significantly increase that figure.
Omo cited findings from the GSMA Mobile Economy Africa Report, which show that mobile technologies and services contribute $240 billion to African economies, support 13 million jobs, and generate approximately $45 billion in government revenue.
He urged telecommunications regulators across Africa to go beyond simply reading the report and instead use its findings to guide policy decisions.
According to him, regulators should examine the data carefully, compare it with local market realities, identify information gaps, and develop evidence-based policies that support long-term industry growth.
GSMA Calls for Modern Telecom Regulations
GSMA’s Head of Policy and Regulation, Michaela Angonius, said many African countries still operate telecommunications licensing systems that were designed for older technologies.
She explained that technology-specific licensing frameworks are becoming outdated as satellite communications and other emerging technologies continue to expand.
Angonius recommended adopting technology-neutral licensing, allowing different communications providers to operate under one flexible regulatory system regardless of the technology they use.
She also called on governments to make better use of Universal Service Funds (USFs). Instead of allowing the funds to remain unused, she said they should finance connectivity projects in underserved rural communities.
According to her, governments should also prioritise policies that encourage infrastructure investment instead of relying heavily on strict quality-of-service regulations.
She noted that countries with the strongest telecommunications networks usually achieve better results by creating investment-friendly environments.
Affordable Smartphones Key to Closing Africa’s Usage Gap
GSMA’s Senior Director of Public Policy and Communication, Caroline Mbugwa, warned that Africa risks missing out on the benefits of artificial intelligence unless more people can afford to access digital services.
She said approximately 961 million Africans already live within mobile broadband coverage areas but remain offline because smartphones and internet services are still too expensive. GSMA describes this challenge as the continent’s “usage gap.”
Mbugwa urged African governments to reduce taxes on entry-level smartphones to make digital devices more affordable.
She pointed to South Africa, where removing a 9% luxury tax on entry-level smartphones helped increase smartphone adoption.
She also explained that expanding broadband infrastructure into rural areas remains expensive, often costing two to five times more than deployments in urban locations while producing much lower financial returns.
Satellite Services and AI Require Smarter Policies
Mbugwa said regulators should create technology-neutral regulations that allow operators to deploy whichever technologies best suit local conditions, including satellite communications where necessary.
She added that all providers offering similar communications services should operate under the same regulatory framework to encourage fair competition.
According to her, the Digital Africa Index provides policymakers with practical evidence to identify areas requiring reform and should guide future regulatory decisions.
She also announced that GSMA will introduce its AI Atlas initiative, which aims to integrate African languages into large language models to improve artificial intelligence accessibility across the continent.
Nigeria is among the participating countries, with four Nigerian languages already included in the project.
Partnership Supports Africa’s Digital Future
The partnership between ATU and GSMA reflects a broader effort to strengthen Africa’s digital economy through better regulation, increased investment, improved connectivity and wider digital inclusion.
Industry leaders believe that modern policies, affordable devices, expanded broadband infrastructure and technology-neutral regulation will help Africa unlock even greater economic value from its rapidly growing telecommunications sector.
