Published on March 5, 2014
Copyright © 2014 Tech Mahindra. All rights reserved. 1
Africa The "Opportunity" Land Copyright © 2014 Tech Mahindra. All rights reserved. 2
Africa: its SERIOUSLY big Copyright © 2014 Tech Mahindra. All rights reserved. 3
Some big numbers in Africa: The mobile phone sector presents one of the biggest growth areas $ 1.6 trillion Africa’s collective GDP in 2008, roughly Africa’s economic growth accelerated after 2000, making it the world’s third-fastest Growing region equal to Brazil’s or Russia $860 billion Africa’s combined consumer spending in 2008 316 million the number of new mobile phone subscribers signed up in Africa since 2000 (more than the entire US population ) 52 the number of African cities with more than 1 million people each 20 the number of African companies with revenues of at least $3 billion 1.1 billion the number of Africans of working age in 2040 The continent will be home to one in five of the planet’s young people and its labour force will be the largest in the world, topping both China and India. On average, African workers are currently less than half as expensive as their counterparts in Central Asia, Latin America and Eastern Europe Copyright © 2014 Tech Mahindra. All rights reserved. 4
Growth of mobile telephony "The mobile phone revolution continues," says a UN report charting the phenomenon that has transformed commerce, healthcare and social lives across the planet. Mobile subscriptions in Africa rose from 54m to almost 350m between 2003 and 2008, the quickest growth in the world…. • driven by low penetration of fixed line (only at 2.8%) • defied hostile environments e.g. war – Somalia, Liberia etc • cheaper to invest in vs. landlines (cheap handset & airtime options – e.g. Safaricom offers USD 20) • traverses rural geographies unreached before • not hindered by lack of electricity • opened up internet access through phone (higher in Africa vs. world) • network expansion will open up more and more opportunities ….massive REACH, easier communication, increased internet access, new channel >> new ways of delivering marketing mix including communication Copyright © 2014 Tech Mahindra. All rights reserved. 5
Cable plans are already providing mobile & computer connectivity for Africa Copyright © 2014 Tech Mahindra. All rights reserved. 6
Tech Mahindra’s presence in Africa Presence in 44 countries in Africa 2500+ staff across more than 20 nationalities Serving some 400 million plus end customers Serving sectors including – Banking – Telecom – Retail – Oil & Gas Airtel Money volume on Airtel Money is around 1.6 million and uptime over 99Managed operations handing Daily transactions % Copyright © 2014 Tech Mahindra. All rights reserved. 7
Opportunities in Africa Humongous opportunities exist across Africa… The premise is to fulfill the basic needs such as: – Finance – Education, and – Governance And to serve the large number of SMB Although the challenge is to Copyright © 2014 Tech Mahindra. All rights reserved. Adapt to Africa! 8
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