Africa Mobile Usage, Research Paper Example

Introduction: The general importance of the topic

Emerging markets are commonly defined as  national economies that are progressing or developing towards becoming more advanced. This classification is usually based on the country’s debt, liquidity, the existence of a market exchange and regulatory body, and an equity market. Emerging markets rarely have the same level of market efficiency of standard markets like the Untied States  Europe or Japan. They are known to have some form of stock market and basic financial infrastructure though. Sub-Saharan Africa is considered to be an emerging market and many of its recent developments in commerce can be attributed to the adaption and transition over from predominantly land-line based forms of telecommunication to mobile devices. The drastic shift in economic growth that is occurring due to the influx of mobile phone use in Africa can be attributed to whats known as the digital divide.

The digital divide between nations is the best tool to use as a defining example of the difference between traditional telecommunication methods and new forms like through the use of mobile devices. This can especially be seen in emerging markets like Sub-Saharan Africa as mobile device use, specifically the use of smart phones, ultimately results in an enhanced use of the internet. Consensus among academic studies on the topic find that technology and its world influence can be measured in respect to the current global divide in digital technology based on a cross-national difference in internet usage. Creeber and Martin (2009) state this discrepancy between developed and developing nations can be attributed to “the economic, regulatory and sociopolitical characteristics of countries and their evolution over time” (Creeber & Martin, 2009). In a recent study where the authors examined data of over 118 countries between 1997 and 2001, it was revealed that a significant amount of data supporting the hypothesis that, mobile device use has a direct impact on internet usage in emerging markets and ultimately results in an increase in world-system status, competition in telecommunications, democracy, cosmopolitanism, and privatization within markets.  privatization and competition in the telecommunications, democracy and cosmopolitanism” (Creeber & Martin, 2009). The differences in sociopolitical characteristics that can bee seen between countries that significantly use mobile devices and those that rely on the traditional mediums like landlines for communication, reveals the impact of new technological waves, and it foreshadows the pre-digital era. The long term influence of mobile device access and the impact it has on the global digital gap can be seen in the enhanced access to education and opportunities it provides, specifically in regards to the use of social media. The following will take a deeper look at how mobile device use is substantially improving the merging market of Africa, what this could potentially means for the region’s future, and it will close by providing some recommendations.

Historical developments in the region & the role of foreign organizations

In the past, a large portion of Africa’s infrastructural development has been reliant on aid provided by foreign organizations. The U.S. And China are among Africa’s most prominent contributors. Despite the U.S.  providing massive amounts of aid over the past two decades, China’s efforts have been more effective through choosing selection locations to develop sound conservative growth.   China mainly focuses on Sudan, Rwanda, Angola, Uganda, and South Africa, while the United states has established over 27 development operations in the region.

Besada, Tok,  and Winters (2013) state that, “with a GDP of approximately one-sixteenth of China’s out-put, an annual growth rate of  2.8 per cent in 2010 (relative to 10.3 percent for China, 9.7 percent for India and 7.5 percent for Brazil) and a population of 50 million (relative to China’s 1.3 billion and India’s 1.2 billion), South Africa has significantly less economic power than the other members” (Besada, Tok,  & Winters, 2013). Besada, Tok,  and Winters (2013) further point out that South Africa’s nominal GDP of US$286 billion, is noticeably lower than Brazil which is only valued at $1 Trillion. Expansions in mobile device use, has been one key way in which Africa can improve both infrastructure and  socioeconomically organically without relying on outside influence, but as the BRICS report in the table below demonstrates, there is a direct correlation with South Africa’s emerging market status and its used of mobile devices as its mobile use is significantly lagging behind that of other nations.

The above table demonstrates that within similar emerging markets like Brazil, South Africa still lags behind in mobile device  use substantially compared to other regions of the world. For a long time, there has been a divide between the technological resources shared by the lower income regions of the word and more developed countries. The major differences between third world or emerging markets like Sub-Saharan Africa and the United States or the U.K is usually measured in fiscal terms, but wealth is a direct extension of access.

Regional characteristics & main countries of the region that are affected by the topic

In Aker and Mibiti’s (2010) study on Sub-Saharan Africa, the authors note that the region has some of the lowest levels of infrastructural investment in the world. They based this assertion on the fact that only 29 percent of roads are paved, and less than  a fourth of the population has access to electricity. They also note in regards to telecommunications that there are less than three landlines accessible per every 100 people in Sub-Saharan Africa (Aker & Mbiti, 2010).  Despite this alarming fact Aker and Mbiti note that  “access to and use of mobile telephony in sub-Saharan Africa has increased dramatically over the past decade. There are ten times as many mobile phones as landlines in sub-Saharan Africa (ITU, 2009), and 60 percent of the population has mobile phone coverage. Mobile phone subscriptions increased by 49 percent annually between 2002 and 2007, as compared with 17 percent per year in Europe”  (Aker & Mbiti, 2010). This rise in mobile telephone use has introduced a wide range of possibilities to the continent of Africa as a whole. . Individuals across urban-rural as well as the rich-poor divide are better able to connect through mobile devices. Likewise, businesses are better able to establish viable information markets and services.  The study further points out that in Mali, residents of Timbuktu are now capable of calling friends and family residing in the capital city of Bamako  as well as family in France. Furthermore, in Ghana Tamale farmers can text message back and forth between Accra to find out tomato prices, which provides them with a valued convenience as Accra is over 1,000 kilometers away.  In Niger, the day laborers can now call Benin to inquire about possible  job availabilities  without paying the cost to travel.. The authors further note that, “ in Malawi, those affected by HIV and AIDS can receive text messages daily, reminding them to take their medicines on schedule. Citizens in countries as diverse as Kenya, Nigeria and Mozambique are able to report violent confrontations via text message to a centralized server that is viewable, in real time, by the entire world”(Aker & Mbiti, 2010). There study clearly demonstrates how across the continent of Africa, drastic improvements are being made in due to the use of mobile devices, specifically as it relates to their affordability and convenience of use. Most importantly, Africans are more empowered in the lowest income regions to access sources of economic freedom or stability.

The most significant developments (events, strategies, policies)

In Donner’s (2006) study on the impact mobile devices are having in Kigali Rwanda on micro-entrepreneurs, the author notes that mobile penetration in Africa is a fraction higher in developing regions than it is in higher income areas due to the fact that many individuals in lower income regions use mobile devices as substitute devices. The author notes that in 2004, there were an estimated 16 mobile users for ever 1,000 people, which accounted for about 139,000 subscribers.

The above table demonstrates that mobile line use has increased exponentially since 1998. The increase in telecommunication through mobile devices. Telecommunications supplements economic development through enabling more quality market information; enhanced transport efficiency and more distributed economic development. It also results in providing emerging markets with reduced isolation and increased security for organizations, villages, and people on an individual level. Most importantly, mobile devices are recognized as providing Africa with enhanced connectivity to and collaboration with coordination with international economic activity.

The above table reveals that there is both simultaneous growth in Rwanda in business relations and non business relations due to mobile device use. This increase in communication directly correlates to a narrowing of the digital divide as it demonstrates mobile devices usage is enhancing socioeconomic engagement in the region. Putting it in global and international terms, in his work “The international Gap in Technology,” author Potashnik states that, “at the dawn of the twenty-first century, there was a major gap between industrialized and developing countries in terms of their access to information and communications technology” (Potashnik, 2013). He goes on to further attribute globalization as the core source of this gap. He says, “this gap has come to be known as the digital divide and is illustrative of the vast differences in development among nations resulting from the process of globalization” (Potashnik 2013). The data presented in Potanik’s work establishes understanding concerning countries and their internet related technologies.The current state of the global digital divide, specifically as it relates to developing nations, entails the process of trying to bridge the gap between nations that are less technologically advanced those considered to be at the forefront of the tech world. It is commonly understood that countries with their own internet connections are empowered socioeconomically and their citizens tend to be more informed. As globalization expands and regions like Africa embrace mobile telecommunication and e-commerce new infrastructure becomes a byproduct of this evolution.

The future of this issue in the region

In sum, through the use of mobile devices, Africans are becoming more informed and connected both personally and in their business ventures. The use of mobile devices is also helping small enterprises expand and develop through making business to business correspondence more affordable. One future issue that may arise, is getting mobile services or internet service to more obscure parts of Africa. Other issues that can occur involve political and industrial setbacks that might result from more connectivity and dialogue on a global scale. As Africans become more conscious of the state of affairs in other countries, through the use of mobile devices and the social networking applications they provide, it is inevitable that they will liken those affairs to their own. This can potentially create cultural upheaval similar to what was seen during the Arab Spring revolution, which largely sprung out of social networks, but resulted in the overthrow of numerous longstanding Middle Eastern regimes.

References

Aker, J. C., & Mbiti, I. M. (2010). Mobile phones and economic development in Africa. The Journal of Economic Perspectives, 207-232.

Besada, H., Tok, E., & Winters, K. (2013). South Africa in the BRICS: opportunities, challenges and prospects. Africa Insight, 42(4), 1-15.

Creeber, G. & R. Martin. (2009). Digital cultures: understanding new media. Berkshire, England: McGraw-Hill..

Donner, J. (2006). The use of mobile phones by microentrepreneurs in Kigali, Rwanda: Changes to social and business networks. Information Technologies & International Development, 3(2), pp-3.

Potashnik, M. (2013). The International gap in technology – the digital divide in education, education and technology in the balance. Net Industries and its Licensors. http://education.stateuniversity.com/pages/2124/International-Gap-in-Technology.html