Mobile sector in EA posts growth in 2023 – report

The mobile industry in East Africa is experiencing significant growth, with the average mobile penetration rate across the region reaching 100 per cent by the end of 2023, a new industry report has said.

The East African Communication Organisation (EACO) said in a report published in Nairobi, that several countries in East Africa are experiencing particularly strong growth, with Uganda’s mobile penetration rate increasing from 70 per cent in 2021 to 81 per cent in 2023.

“South Sudan also saw a significant increase, from 29 per cent to 36 per cent over the same period,” said the report that covers Kenya, Uganda, Tanzania, Rwanda, Burundi and South Sudan.

EACO noted that Kenya and Tanzania have the two highest mobile penetration rates in the region, at 129 per cent and 113 per cent, respectively in 2023 due to the situation of multiple SIM card ownership.

The findings indicate that Rwanda’s mobile penetration rate stood at 94 per cent in 2023, which represents a significant increase from 84 per cent in 2021.

EACO said the East African region witnessed a significant surge in mobile money adoption in recent years as the average mobile money service penetration across East African countries reached 64 per cent by the end of 2023, compared to 49 per cent in 2021.

The report said Kenya maintained its lead in mobile money penetration, with a significant increase from 59 percent in 2021 to 75 per cent in 2023. “This growth can be attributed to the continued success of M-Pesa, a mobile money service launched in 2007 by Safaricom, the largest mobile network operator in Kenya,” it said.