Dr Edward George Head of Group Research amp Country Head Ecobank UK Paris 21 June 2017 2 Disruptive technology is spreading across Africa Mobile phone amp Internet usage is growing too ID: 631381
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Slide1
New business frontiers in Africa
Dr Edward George
Head
of Group
Research &
Country Head, Ecobank
UK
Paris, 21 June 2017Slide2
2
Disruptive technology is spreading across AfricaSlide3
Mobile phone & Internet usage is growing too
3
Source:
ITU
.
Mobile
& Internet usage in Africa, 000s subscriptions
•
Over the past decade mobile phone usage has surged across Africa,
rising
from 87m
unique users in
2005 to an estimated 772 million in 2016.
•
Internet usage has grown more slowly, reflecting the high cost of local services.
•
Rising smartphone ownership is driving improvements in 3G & Broadband services
.Slide4
Fintech is
riding the wave of the mobile revolution
4
Could Fintech break the logjam of financial inclusion?
•
The World
Bank estimated
banking penetration in Sub-Saharan Africa at 28% in 2014.
•
However, m
obile
networks and smartphones are providing a range of alternative payment, lending and savings services that are helping to boost financial inclusion.
•
Nearly all the growth in financia
l inclusion since 2011 is due to mobile banking services
.Slide5
5
The number of
fintechs
is growing exponentiallySlide6
5.63%
5.37%
5.67%
5.62%
5.05%
7.45%
5.74%
5.79%
6.82%
6.94%
7.01%
8.02%
4.31%
4.58%
3.61%
5.31%
5.95%
6.63%
4.99%
2.47%
5.83%
Source: McKinsey
Africa’s power network is inadequate
5.3%
Country Average GDP growth between
2015 - 2020
Africa Average GDP growth between 2015 - 2020
•
Africa’s electrification rates are low – over 40% of
Africans
do not have access to electricity.
•
Power shortfalls across the continent are in excess of 25% of the region’s electricity demand
.
•
Nigeria produces as much power as Greater London – but for a population >20 times the size.
•
Nigeria’s off-grid generating capacity is over
20,000
MW, five times the national grid.
•
At current growth rates, Africa’s electricity demand (per capita) will nearly double from 514 kwh in 2015 to 989 kwh by 2040
.
6Slide7
7
The sources of power generation are imbalanced
Source:
Ecobank
Research.
Key sources of power generation,
2016
South Africa Nigeria Zambia
•
Most countries are heavily reliant on a single source of power generation.
•
South Africa gets 94% from coal, Nigeria 82% from gas & Zambia 100% from hydro.
•
Renewables made up just 0.23% of generating capacity in South Africa in 2016
.Slide8
8
Fintech & renewables are combining in innovative waysSlide9
And now to our panel…