European telecoms industry turns to Africa for growth

European telecoms firms are looking to Africa to boost growth as restrictive merger rules slow their expansion at home.

Although mobile connectivity rates have surged in recent decades, Africa remains a global laggard, with just 51% of adults having access to a smartphone, while just a quarter is connected to mobile broadband.

Many who do have mobile phones rely on outdated 3G and even 2G networks, which are significantly slower than those used in much of the West. With the continent’s population forecast to rise by a billion by 2070 and grow significantly in wealth, Africa offers opportunities “for scale,” the CEO of Vodafone told the Financial Times.