Africa’s digital economy is expanding rapidly, but a fundamental constraint threatens to slow its momentum: millions of people remain unable to access the internet not because networks are unavailable, but because smartphones are still out of reach. Industry leaders now argue that solving this problem—rather than continuing to prioritise infrastructure—will determine whether the continent can successfully connect its next 500 million users.
Estimates based on recent country-level aggregations indicate that Africa surpassed 550 million internet users in 2025. A significant share of that figure comes from just three countries—Nigeria, Egypt and South Africa—which together account for more than 250 million users. Even so, a substantial portion of the population remains offline, highlighting a persistent gap between network availability and actual usage.
This issue dominated discussions at a panel session titled “Closing the Usage Gap: Profitable Models for the Next Half-Billion” at GITEX Africa in Morocco. Telecommunications executives and regulators at the event converged on a clear message: the continent’s next phase of digital growth depends less on expanding coverage and more on ensuring people can afford internet-enabled devices.
Lanre Ore, Chief Executive of FiberOne, captured this shift in priorities by arguing that traditional investment strategies must be reconsidered. For years, telecom operators have focused on infrastructure—rolling out fibre networks, building base stations and acquiring spectrum. While these investments have significantly improved coverage, they have not translated into universal connectivity.
Ore argued that if resources were to be concentrated in one area, it should be device affordability. Without smartphones in the hands of consumers, he noted, even the most sophisticated infrastructure cannot generate meaningful returns. Connectivity, in essence, only becomes valuable when it is accessible.
The challenge is particularly acute among low-income populations, where smartphone penetration remains uneven. Although mobile broadband networks have expanded rapidly over the past decade, the upfront cost of devices relative to income continues to exclude millions from the digital ecosystem.
To address this, industry leaders are advocating for a range of financing and subsidy models designed to lower entry barriers. These include instalment payment schemes, device financing plans and bundled service contracts that combine smartphones with data packages. By spreading costs over time or reducing initial purchase prices, such approaches could unlock access for a large segment of the population.
Ore emphasised that the importance of devices goes beyond simple connectivity. Digital services—whether in finance, education, healthcare or entertainment—are all accessed through smartphones. Without them, there is no meaningful participation in the digital economy, no data consumption and limited opportunity for services to scale.
This growing emphasis on affordability reflects a broader shift toward demand-side interventions. Analysts and executives increasingly believe that connecting the next wave of users will require policies and business models that stimulate adoption, rather than simply expanding supply. Subsidies for low-income users, innovative pricing strategies and flexible payment systems are seen as critical components of this approach.
However, panellists stressed that device financing alone will not be enough. Broader structural and regulatory factors also play a decisive role. Amara Brewah, Director-General of the National Communications Authority, highlighted the need for stable and predictable policy environments to attract long-term investment.
According to Brewah, investors are more likely to commit capital when regulatory risks are minimised. This requires transparent licensing frameworks, consistent spectrum pricing and long-term policy clarity. Without these elements, even well-designed affordability initiatives may struggle to gain traction.
The discussion also underscored concerns that many government policies remain overly focused on short-term revenue generation. Taxes, tariffs and high spectrum fees can increase the cost of doing business for telecom operators, ultimately translating into higher prices for consumers. Executives warned that such “revenue-first” approaches may undermine long-term sector growth.
Ore argued that a more balanced strategy is needed—one that prioritises enabling conditions for investment and expansion. Measures such as reducing the cost of spectrum and supporting alternative energy solutions, including green power for telecom infrastructure, could significantly lower operators’ operating expenses. These savings, in turn, could be passed on to consumers in the form of more affordable services.
Lower prices tend to drive higher adoption rates. As more users come online and consume digital services, the overall economic activity generated by the sector increases, potentially leading to higher government revenues over time through taxation and broader economic growth.
The need for such a shift is becoming more urgent as telecom operators encounter slowing growth in average revenue per user in mature urban markets. With many cities already well-served, future expansion is expected to come from rural and underserved areas. These regions often present a paradox: large populations offer scale, but low income levels limit immediate profitability.
In response, executives are calling for a redefinition of success metrics within the industry. Rather than focusing narrowly on short-term revenue, operators are being encouraged to adopt a longer-term perspective. Metrics such as customer lifetime value, long-term engagement and ecosystem participation provide a more accurate picture of potential returns, particularly in emerging markets where adoption may take time to mature.
This long-term approach aligns with another major trend reshaping the sector: convergence. Telecom operators are increasingly integrating services from adjacent industries—such as financial services, e-commerce and entertainment—into their offerings. As traditional voice revenues decline, data-driven services and digital ecosystems are becoming the primary engines of growth.
Brewah noted that this evolution requires a fundamental rethink of the telecom business model. Operators can no longer rely solely on providing connectivity; instead, they must position themselves as platforms that enable a wide range of digital services. In practice, this could involve deeper integration of mobile money, digital lending and other financial tools, particularly in markets where such services have already gained traction.
The conversation also touched on the role of emerging technologies, particularly artificial intelligence. Ore pointed to pilot projects in customer service operations that have demonstrated significant efficiency gains. AI-driven systems have been shown to improve user experience while reducing operational costs, making them an attractive option for telecom companies seeking to optimise performance.
At the same time, he acknowledged the trade-offs associated with automation. While AI can lower costs, it may also lead to job displacement in certain areas, even as it creates new opportunities in others. This dual impact underscores the complexity of technological adoption in the sector.
Despite these multiple layers of transformation—ranging from regulatory reform and business model innovation to technological advancement—there was broad agreement on the immediate priority. Expanding access to affordable smartphones remains the most critical step toward closing Africa’s digital divide.
As the panel concluded, participants were asked to identify the single most important action needed to accelerate progress over the next five years. Ore reiterated his focus on affordability, advocating for targeted subsidies to reduce the cost of entry for new users. Other speakers echoed the importance of device financing models, describing them as essential tools for scaling adoption in price-sensitive markets.
Brewah agreed, while emphasising that such measures must be part of a broader ecosystem that includes supportive regulation, sustained investment and high-quality services. Device affordability, she suggested, is necessary but not sufficient on its own.
The discussion ultimately highlighted a deeper shift in how the industry understands the “usage gap”—the divide between network coverage and actual internet use. While infrastructure deficits still exist in some regions, the more pressing challenge increasingly lies in ensuring that people can afford, access and effectively use the services already available.
Closing that gap will require coordinated action across governments, regulators and private sector players. It will also demand a move away from short-term thinking toward strategies that balance profitability with inclusion.
For Africa’s digital future, the implications are clear. The success of the next phase of growth will not be determined solely by how widely networks are built, but by how many people can actually connect. And that, more than anything else, depends on whether the devices that enable access are within reach of the millions still waiting to come online.