The Financial Challenges of the Sub-Saharan Africa Telecoms Boom
Telecom industry has taken a significant place within of the economy of most African countries. In this aspect, it is an undeniable source of economic growth and development. It impacts on the financial sphere at three levels.
Firstly, telecom industry in African countries plays a considerable part within capital flow themselves: from mobile-payment to international money transfer, impacts are numerous. Furthermore, private telecommunications companies are often the most important fiscal contributors, rising many questions about economic issues for African governments. Finally, there is the setting up of a speculative telecom bubble in Africa with an important rise in value of licences or private telecomunications companies; a bubble which is probably going to face difficulties when some companies are going to struggle reimbursing their debts. The analysis of these three phenomena illustrates key challenges for this industry within the coming years.
This paper is a translation from a note published in French on Ifri's website in February 2010: Les enjeux financiers de l'explosion des télécoms en Afrique subsaharienne
Henri Tcheng is Partner at Cabinet BearingPoint in charge of Telecoms for Europe, Africa and Middle-East, Jean-Michel Huet is Senior Manager in the same team and Mouna Romdhane, consultant.
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The Financial Challenges of the Sub-Saharan Africa Telecoms Boom
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Sub-Saharan Africa Center
Founded in 2007, Ifri's Sub-Saharan Africa center produces an in-depth analysis of the African continent and its security, geopolitical, political and socio-economic dynamics (in particular the phenomenon of urbanization). The Center aims to be both, through various publications and conferences, a space for disseminating analyzes intended for the media and the public but also a decision-making tool for political and economic actors with regard to the continent.
The center produces analyses for various organizations such as the Ministry of the Armed Forces, the Ministry of Europe and Foreign Affairs, the Organization for Economic Cooperation and Development (OECD), the French Development Agency (AFD) and even for various private supports. Its researchers are regularly interviewed by parliamentary committees.
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