Sub-Saharan Africa: mobile business is on the rise - report

Moreover, improvements in mobile connectivity are increasing the number of potential shoppers online across Sub-Saharan Africa, although the mobile-money infrastructure remains a constraint for the industry, according to the ‘M-Commerce in Sub-Saharan Africa: Making Sense of a Growing Mobile Business’ report issued by the voIP telephone services company Telecom Insider.

The report scrutinizes 2 types of transactions: those completed on a mobile phone and purchases of goods or services using mobile money. Also, the report uses a 4-part framework that consists of product identification, purchase and payment, delivery and post-purchase feedback. These are also the 4 steps in a consumer’s purchase transaction on a mobile phone using mobile money.

The report also suggests that the key to growth will be an increase in the interoperability of payment systems offered by providers. The combination of mobile money and mobile commerce has the potential to significantly alter the way commercial transactions are completed in Africa.

An additional point revolves around the infrastructure deficit, both domestic and international, and which is a key cost to African companies looking to set up an m-commerce platform.