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Africa’s Smartphone Market Suffers Sharp Fall in Q3 2022

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Newly released data from IDC’s Worldwide Quarterly Mobile Phone Tracker shows that Africa’s overall mobile phone market suffered a year-on-year (YoY) decline of 19.9% in Q3 2022 to total 42.2 million units. The feature phone market was down 20.1% YoY to 24.4 million units, while smartphone shipments declined 19.8% to 17.8 million units, which represents a very low quarterly smartphone volume for the continent.

All of Africa’s smartphone markets experienced YoY declines in Q3 2022, with the two major markets of South Africa and Nigeria falling 16.2% and 21.1%, respectively.

“The declines seen across the continent were caused by an overall slow economy, high inflation rates, higher dollar exchange rates, and the increasing cost of living,” says Taher Abdel-Hameed, a senior research analyst at IDC. “All of these factors contributed to a slowdown in demand, which in turn forced most of vendors to cut their shipments into African markets.”

Egypt’s smartphone market declined 73.4% YoY due to the introduction of government regulations around imports. “The Egyptian government has introduced several restrictions on mobile phone imports,” says Abdel-Hameed.

“These restrictions — which include requirements for all import payments to be conducted via letters of credit (LCs) and for all LCs to be approved by the central bank, with limited approvals granted so far — have caused a huge dip in the market.”

Transsion brands (Tecno, Infinix, and Itel) continued to lead Africa’s smartphone market in Q3 2022, with a combined unit share of 47.4%, followed by Samsung and Xiaomi with respective shares of 25.9% and 6.4%. Transsion brands also dominated the feature phone market, with a combined unit share of 79.1%, followed by Nokia (6.1%).

The low-end price bands (less than $200) continued to dominate Africa’s smartphone market in Q3 2022, accounting for 83.6% share of shipments. The major increase versus Q3 2021 was seen within the $100 to $200 price range. The midrange price band ($200 to $400) maintained its position in the rankings, suffering a slight decline in share from 12.8% in Q3 2021 to 11.6% in Q3 2022.

Looking ahead, IDC expects the African smartphone market to grow 8.8% YoY in unit terms in 2023. “While 2022 has been a year of downturn in the African smartphone market, especially with Egypt undergoing a challenging period, a return to growth is expected in 2023,” says Ramazan Yavuz, a senior research manager at IDC.

“This growth will be spurred by a recovery in the Egyptian market and an influx of more affordable models to offset declining consumer disposable income in most countries across the region.”


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Zipline Achieves One Millionth Delivery Milestone

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Zipline, the leading force in drone logistics delivery, has reached a monumental achievement with its one-millionth delivery to customers, signifying a significant leap forward in the logistics delivery sector. This historic milestone was marked by the delivery of two bags of IV fluid from a Zipline distribution center in Ghana to a local health facility.

Renowned for its innovative approach to designing, building, and operating autonomous delivery drones, Zipline’s zero-emission technology has garnered acclaim, covering over 70 million commercial miles across four continents.

Backed by investments surpassing several millions of dollars from notable supporters like Sequoia Capital, a16z, and Google Ventures, Zipline has firmly established itself as a disruptive leader in the industry. CEO Keller Rinaudo emphasizes the company’s commitment to key markets such as healthcare, quick commerce, and food delivery, envisioning a future where Zipline achieves 1 million deliveries per day.

“The three areas where the incentive really makes the most sense today are health care, quick commerce, and food,” underscoring Zipline’s commitment to partnering with top brands and institutions to transform the future of logistics using autonomous drones –  Keller Rinaudo Cliffton.

In Africa, Zipline has made a profound impact, forging significant partnerships across the continent. In Ghana alone, which accounts for about 54% of the one-millionth delivery milestone, Zipline’s collaboration with the government and health ministry has been pivotal. Since its inception, Zipline has completed over 540,000 drone delivery flights across Ghana, encompassing the delivery of crucial supplies, including 3,566,500 units of vaccines, 2,825,210 units of medical products, 14,807 units of blood products, and 18,289 units of animal health products. These deliveries have directly impacted the lives of over 17 million Ghanaians across 13 regions, saving 6,014 lives through emergency deliveries, including blood products and snake antivenom since 2019.

Beyond mere statistics, the company has facilitated the delivery of 12.2 million vaccine doses, including 2.8 million Covid-19 vaccines, leading to a 21% increase in vaccination coverage and a 44% reduction in missed opportunities to vaccinate in Ghana. These efforts have potentially saved 727 lives due to increased vaccination coverage. Additionally, Zipline’s infrastructure expansion in Ghana, with six distribution centers strategically located across the country, has enabled swift and efficient on-demand drone delivery services.

Not only this, the technology has facilitated the vaccination of 104,000 cattle against Anthrax in northern Ghana, safeguarding both human and animal lives. Such interventions have also extended to the agricultural sector, where 10.4 million doses of poultry vaccines have been delivered to poultry farmers nationwide, combating diseases such as Newcastle disease, Fowl pox, and Gumboro.

But Zipline’s impact in Africa extends far beyond Ghana’s borders. Operating in Rwanda, Kenya, Côte D’Ivoire, and Nigeria, the company has become a beacon of hope for healthcare accessibility and disease prevention. In Rwanda, Zipline serves as a lifeline, delivering 75% of the country’s blood supply outside of Kigali, drastically reducing maternal mortality rates due to postpartum hemorrhage by 88%. Additionally, the company’s deliveries of agricultural products have elevated farmers’ fertility rates by 10% compared to the national average.

In Kenya, Zipline’s collaborations with the Elton John AIDS Foundation have facilitated the delivery of HIV/AIDS prevention and treatment products, empowering individuals to manage their health effectively. Similarly, in Nigeria, Zipline’s expansive coverage encompasses over 500 health facilities in Kaduna, more than 350 in Cross River State, and 200 in Bayelsa. Teaming up with Gavi, the Vaccine Alliance, Zipline focuses on reaching children in remote regions, ensuring equitable access to life-saving immunizations.

Zipline’s adaptive approach and tailored delivery services reflect its commitment to meeting the diverse needs of populations and sectors. The achievement of the one millionth delivery milestone underscores its dedication to enhancing healthcare outcomes and addressing societal needs across Africa. As Zipline continues to innovate and expand its reach, it is poised to shape the future of healthcare delivery on the continent and beyond.

 

 

 


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Telcos Record N27Bn Loss from Damaged Fibre Cables

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Repairs and revenue losses from damaged cables are estimated to have cost Nigeria’s telecom industry almost N27bn ($23m) in 2023, according to documents obtained by Bloomberg.

Telcos Record N27Bn Loss from Damaged Fibre Cables

MTN Nigeria, the biggest wireless operator in Africa’s most-populous nation, and Airtel Africa Plc bore the brunt of the costs, the documents show.

MTN suffered more than 6,000 cuts on its fiber cable last year, the documents show.

On Feb. 28, a cut in its network in three different locations by a road construction firm, an oil serving company, and someone burning rubbish in a manhole meant customers faced more than five hours of data and voice outages.

The operator relocated 2,500 kilometers (1,553 miles) of vulnerable fiber cables between 2022 and 2023, at a cost of more than N11bn —enough to build 870 kilometers of new fiber lines in areas without coverage.

Broadband fibre optic cables form the backbone of modern communication infrastructure, enabling the high-speed data transmission that underpins a wide range of personal, business, and societal activities.

On several occasions, the Nigerian Communications Commission (NCC), the industry regulator, has acknowledged this challenge and expressed willingness to work on measures to address it.

These measures include stricter regulations to deter vandalism and improved collaboration between telcos and government agencies responsible for construction activities.

According to the NCC, the telecom sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5 per cent in the third quarter of last year.


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NCAIR Relaunch: Pantami, Tijani Fight for Credit

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Isa Pantami, former minister of Communications and Digital Economy, has voiced his discontent over the relaunch of the National Centre for Artificial Intelligence and Robotics (NCAIR) by Bosun Tijani, his successor.

Isa Pantami, former minister of Communications and Digital Economy,

Tijani announced the revitalization of NCAIR, highlighting enhancements in its capacity and partnerships with global tech firm Cisco.

However, Pantami took to social media to assert that NCAIR was already established during his tenure in November 2020, dubbing it “the first of its kind in Africa” and emphasizing its effectiveness in training numerous Nigerians.

Tijani responded by detailing the new initiatives accompanying the relaunch, including increased computing infrastructure, dedicated research labs, and remote connectivity for AI hubs across the country. He also unveiled outcomes from the Ministry’s National AI Workshop, such as the country’s first Multilingual Large Language Model and partnerships aimed at accelerating AI development projects of national significance.

The exchange between Pantami and Tijani underscores ongoing efforts to advance AI research and application in Nigeria while navigating questions of continuity and leadership transition within the Ministry.

 


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