Africa’s smartphone market has reportedly experienced sluggish growth, as projections expect to see cautious shipment growth of just 1% in 2025, underscoring the need for sustained efforts to unlock its full potential.
Canalys research reveals that Africa’s smartphone market grew by 3% year on year in Q3 2024, reaching 18.4 million units, reflecting resilience amid a complex economic landscape.
While stabilizing currencies and easing price pressures have provided some relief in specific regions, challenges such as inflation, energy volatility, and subdued consumer demand persist. Rising operational costs, infrastructure gaps, and food inflation continue to weigh on growth prospects.
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Nigeria, Africa’s second-largest smartphone market by volume, recorded a modest 1% growth, impacted by a 69.9% depreciation of the Naira from January to September 2024, though it improved slightly to 32.2% in August. This depreciation continues to constrain consumer demand.
Meanwhile, South Africa experienced a 10% decline in shipments, recording six consecutive quarters of double-digit growth, as economic uncertainties dampened consumer spending despite easing inflation and interest rate cuts. Similarly, Kenya’s smartphone shipments dropped 10% due to elevated fuel costs, production challenges, and the fallout from anti-finance bill protests in June 2024.
Egypt emerged as a standout performer, achieving a remarkable 34% growth for the third consecutive quarter. Localized production has significantly reduced import reliance, cutting the smartphone import bill by 99% to $1.65 million in H1 2024 compared to 2021. Conversely, Morocco faced a 24% decline due to a hike in import taxes earlier in the year, highlighting the region’s challenges.
Vendors Focus on Affordability and Local Manufacturing
The smartphone market continues to reflect shifting dynamics, with affordability being a central strategy. This decline has led vendors to focus on affordability and local manufacturing to stay competitive. This is due to factors like limited disposable income, high taxation, and economic instability. To address these challenges, vendors are offering more affordable entry-level smartphones, and adopting “Buy Now, Pay Later” options.
TRANSSION retained its leadership with a 50% market share, driven by it’s 34% growth and affordable offerings from Infinix and TECNO, Xiaomi saw 13% growth, leveraging products like the Redmi14C in key markets despite a 10% decline in average selling prices (ASP).
HONOR achieved a staggering 287% growth, fueled by initiatives like the “YES Program” and “Code with HONOR” in South Africa, alongside potential manufacturing investments to enhance local talent development and accessibility. OPPO and realme also performed strongly, achieving 22% and 101% growth, respectively, by targeting young consumers and emphasizing value-driven strategies.
Despite these gains, structural challenges remain. High device taxes, volatile economic conditions, and the dominance of feature phones (55% of total shipments as of Q3 2024) continue to hinder smartphone expansion. Addressing these issues will require a collaborative approach among governments, vendors, and service providers.
As service providers transition to technology companies and integrate mobile money services, phasing out 2G and 3G networks will free resources for expanding 4G and 5G coverage.
This shift is expected to sustain growth, with Canalys forecasting a 1% CAGR from 2024 to 2028. The future of Africa’s smartphone market depends on forging innovative partnerships and balancing immediate financial needs with long-term goals. By addressing these challenges, Africa can accelerate its digital transformation, driving connectivity, inclusion, and economic growth across the continent.