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The “App Economy” will Drive Innovation in Africa

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The mobile economy has finally arrived in Africa. Anyone who doubts should simply take a look around them. The millennial generation have become the leading purveyors of the emerging “App Economy”.

They are driving the boom in mobile services and reinventing the way businesses engage with their internal and external audiences and stakeholders.

To compete in this new “app economy,” telcos will need to invest in gaining market share” through mobile applications, services, advertising and the customer data that powers them.Mobile point of sale is also set to take off in the enterprise.

By the end of 2015, nearly 50% of enterprises with 2,500 or more employees will have some variation of a mobile point of sale (mPoS) deployment.

More than 80 percent of market-leading organisations[M1]  globally already recognise that mobile is fundamentally changing the way they do business.By providing apps and services that directly support the devices and connectivity of their core businesses, Africa’s telcos can improve customer satisfaction, decrease the cost of customer service, andgenerate sizable efficiency dividends to their customer retention and employee productivity.

The mobile ecosystem is therefore poised to create new economies driven by a new set of rules. Not one African nation has escaped the movement to mobile.

The dynamics of mobile growth on the continent will continue to provide good study material for savants of global telecommunications, especially when you look at how mobile has helped to transform the national gross domestic picture of nations and the personal economies of citizens at the bottom of the pyramid.

Take a look at Nigeria, a nation of about 170 million people. Nigeria’s mobile uptake has been one of the fastest in the emerging market over the last 12 years, growing from just under 500,000 lines in 2001 to its current 120 million lines.

In the Indian Island nation of Mauritius (population 1.3 million), the impact of mobile has been no less significant. Rated as one of the easiest countries to do business in in Africa, Mauritius has clearly benefitted from the adoption of new technologies like mobile and bio-technology in its agriculture sector.

It should therefore come as no surprise that Africa’s cellular network operators have been able to benefit from rapid growth in mobile subscriptions.

But traditional telco business models rely on high demand for voice and messaging services, which still comprise over 90 percent [A2] of mobile revenues in many markets in the region.

Analysts estimate that data will make up almost 27 percent of telco service revenues in Africa by 2018[M3] .

However, as the adoption of smart devices mobile data grows, telcos face increasing competition from over-the-top (OTT) providers offering free apps for messaging and VoIP calls.

The telco industry can benefit significantly from embracing this mobile disruption.In the African markets where 80 percent of consumers have no bank accounts,[M4] for example, telcos have already disrupted financial services providers with mobile money services.

With their knowledge and control over mobile networks and infrastructure, telcos also occupy a prime position to facilitate the mobile transformations of other industries; from retailers adopting enterprise mobile solutions to manage back-end logistics, to governments seeking to offer the same ease of use and convenience that citizens already expect from the private sector.

For example, in Ghana, Surfline Communicationsis using an IBM cloud solution to support critical back-end processes.

This IBM technology is helping Surfline not only to focus on mobile innovations for its own customers, but also support the infrastructural and implementation needs of Ghana’s businesses and government agencies as they start to invest more heavily in mobile services.

Adopting a mobile mindset
For most Africans, mobile devices are the primary technology platform. African telcoswould do well to consider the frictions experienced by prepaid customers, who account for 9 in every 10 Africans with a mobile device[M5] .

Prepaid customers with medium to high spending –particularly those using smart devices – typically want flexibility in their service consumption.

However, these same customers face the inconvenience of frequentlytopping up their accounts using vouchers, a legacy procedure that has not changed in the past 15 years.

This can be transformed with asimple smartphone app which automatically tops-up a customer’s prepaid account from their mobile wallet, when it hits a certain threshold. It would save telcos the significant margins that typically go to retailer-middlemen selling prepaid credits; and create a new source of revenue for banks enabling direct access to bank accounts to top-up. 

Bharti Airtel, a leading Indian telco, offers customers an award-winning app built with IBM technology which lets them manage multiple services (and even add new ones).

For Africa’s phone companies, the capacity to act local and think in global terms would be crucial test of their market relevance.

As other parts of the world continue to pivot to mobile, the telcos in Africa have a valuable blank slate on which to develop new products and services (and even new business models, based on open software design and collaboration), with relevance to a range of other industries in the region and around the world.

These telcos have a natural advantage to take the lead in mobile services innovation, thanks to their history of control over the device and the network.

Rui Serra is IBM Territory Manager – Central Africa (Angola, Indian Ocean Islands & SADC Region).


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E-Business

Meta to Charge Location Fees on Ads to Six Countries from July 1, 2026

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Meta, a multinational technology company, has informed advertisers that it will begin applying new location-based fees to certain advertisements delivered in six selected jurisdictions starting July 1, 2026, as the company moves to offset costs linked to digital services taxes and other regulatory charges.

Meta to Charge Location Fees on Ads to Six Countries from July 1, 2026

In an email sent to advertisers, the company explained that the new charges will apply to ad impressions delivered to audiences in specific countries, regardless of where the advertiser’s business is based.

“Meta will soon apply new location fees to ads delivered in specific jurisdictions to cover digital service taxes (DST) and other location-based fees imposed on Meta in those jurisdictions,” the company said in the mail.

According to the notice, the fees will be applied to ads delivered in Austria (5%), France (3%), Italy (3%), Spain (3%), Türkiye (5%), and the United Kingdom (2%).

The company added that these rates and jurisdictions could change over time.

Meta described location fees as additional charges tied to where ads are delivered rather than where the advertiser operates.

“Location fees are additional charges that may apply to ads delivered in selected jurisdictions to cover part of the costs associated with doing business in those jurisdictions,” the company said.

The company noted that the charges will be calculated after ads are delivered and will not be deducted from campaign budgets.

Meta gave an example in the email: if an advertiser spends $100 on ads delivered in Italy, where the location fee is 3%, the final cost would be $103, excluding any applicable value-added tax.

Explaining the reason for the change, the company pointed to regulatory developments affecting technology platforms.

“The cost of delivering ads in specific jurisdictions is changing due to the evolving regulatory landscape, including digital services tax legislation. Until now, Meta has covered these additional costs,” the company said.

The company added that the move aligns with broader industry practices, noting that other digital platforms may introduce similar charges linked to digital service taxes.

Meta said the location fees will apply to all ad formats, including image and video ads, as well as campaigns such as WhatsApp click-to-message ads that are billed together with advertising.

The fees will appear on invoices with clear descriptions by jurisdiction, such as “Italy digital services,” the company said, adding that taxes like VAT will still be applied on top of the total amount.

Advertisers were advised to review the affected ad accounts and share the update with their finance, procurement and marketing teams to prepare for the changes.


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Tizeti Tests Ad-Funded Internet Access Model in Nigeria and Ghana

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Tizeti Network Limited, West African broadband provider, has launched an advertising-supported internet platform across its hotspot network in Nigeria and Ghana, allowing users to watch short video adverts in exchange for data access.

Tizeti Tests Ad-Funded Internet Access Model in Nigeria and Ghana

The system converts advertising engagement into internet connectivity, offering users the option to view a short video advertisement to unlock data without paying upfront.

Tizeti said the platform is now active across all its hotspot locations in the two countries, covering residential areas, campuses, commercial districts and other high-traffic urban locations.

The service runs on Google Ad Manager’s rewarded web advertising technology, which allows users to voluntarily watch advertisements and receive data rewards once the video is completed.

At a hotspot location, users connect to the network as usual but are given the option to watch a short advert in exchange for a defined amount of data. Those who choose to participate can repeat the process to earn additional internet access.

The company said the approach creates a value exchange between users, advertisers and network providers.

Users gain internet access without immediate payment, while advertisers reach audiences who have actively chosen to view their messages.

“Internet access is a fundamental driver of opportunity,” said Nsikak Asuquo, West Africa manager at Tizeti Network Limited.

“By rolling out reward-based internet access across Nigeria and Ghana, we are expanding connectivity without financial barriers while offering brands a high-engagement platform to reach more than 2.5 million active users,” he added.

Tizeti said participation in the advertising programme is voluntary and operates under its privacy policies, with data handled in compliance with the Nigeria Data Protection Act and Ghana’s Data Protection Act.

The launch comes as Africa’s digital advertising market expands rapidly. Industry projections suggest programmatic advertising spending could exceed $5 billion on the continent by 2028 as brands increasingly shift marketing budgets online.

By integrating Google’s advertising infrastructure directly into its hotspot network, Tizeti aims to turn public Wi-Fi locations into scalable digital advertising channels while widening access to the internet.

Advertisers will be able to buy ad placements through Google Ad Manager’s ecosystem, including open auctions, private deals and programmatic guaranteed campaigns.

Tizeti said its hotspot network serves more than 2.5 million active users across Nigeria and Ghana.

The company provides broadband services using a mix of fibre infrastructure and public Wi-Fi networks, targeting communities, schools and businesses across the region.


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NITDA, Nkenne AI Seek to Localise AI for Nigerians

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National Information Technology Development Agency (NITDA) is partnering with Nkenne AI, a local artificial intelligence (AI) company, to develop language translation technologies tailored to the country’s diverse linguistic landscape.

There are more than 500 languages spoken nationwide, however many digital systems in Nigeria still operate primarily in English, leaving millions underserved.

NITDA and Nkenne AI have partnered with the ambition to improve accessibility and inclusion across Nigeria’s digital economy.

Nkenne AI’s chief executive, Michael Odokara-Okigbo, said the company is building localised AI translation tools designed for critical sectors, including healthcare, financial services and public administration.

According to him, these tools should enable users to interact with digital platforms in indigenous languages, thus improving accessibility and trust.

It’s not just a Nigerian challenge however, language barriers remain one of the biggest obstacles to technology adoption across Africa.

Beyond translation, the partnership between NITDA and Nkenne AI also seeks to strengthen Nigeria’s startup ecosystem by promoting responsible data practices and supporting emerging AI ventures.


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