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London (pte045/09.03.2005/15:30) - Mobile phone use is growing faster in Africa than anywhere else in the world, according to a new report. As the BBC http://www.bbc.co.uk reports, the study, which was commissioned by Vodafone, said that African countries with greater mobile use had seen a higher rate of economic growth. The report was supported by the Centre of Economic Policy Research http://www.cepr.org and studied the social and economic impact of mobile phones. According to the report, small businesses in South Africa rely on mobile phones, while Nigeria's market is doubling annually. Despite the report's positive findings, the proportion of people using mobile phones in much of Africa remains low in international terms, averaging about 6 per cent in 2004.
According to the report, mobile and landline networks, as well as the openness of an economy, GDP growth and infrastructure, are positively linked with foreign inward investment. The report found that more than 85 per cent of small businesses run by black people, surveyed in South Africa, rely solely on mobile phones for telecommunications. 62 per cent of businesses in South Africa, and 59 per cent in Egypt, said mobile use was linked to an increase in profits, despite higher call costs. The report also found that 97 per cent of people surveyed in Tanzania said they could access a mobile phone while just 28 per cent could access a landline. Furthermore, a developing country which has an average of 10 or more mobile phones per 100 population between 1996 and 2003 had a 0.59 per cent higher GDP growth than an otherwise identical country, the report said.
According to Stephen Yeo, the chief executive of the Centre for Economic Policy Research, mobile phones have enabled developing countries to "leapfrog" old technologies. "The result is explosive growth - 5,000 per cent in Africa between 1998 and 2003, he said. "This research provides the first empirical evidence of a link between social and economic development and the establishment of mobile phone networks," he added. There are currently more than 82 million mobile phone users in Africa.
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