MVNO Nation Africa: Andre Wills on the Strategic Importance of MVNOs for Africa’s Economic Development

Africa is witnessing a remarkable digital transformation, with mobile technology playing a key role in bridging the connectivity gap across the continent. At the MVNO Nation Africa 2024 in Cape Town, Akim Benamara had the privilege to speak with Andre Wills, Managing Director of Africa Analysis Team and he shared his expert insights on the future of Mobile Virtual Network Operators (MVNOs) in Africa, addressing the challenges and opportunities that lie ahead.  

Andre Wills began by highlighting the exciting prospects for MVNOs in Africa. The potential for MVNOs to drive deeper penetration and broader connectivity is immense, yet currently, only five African countries have a competitive MVNO market. 

“This is the age of the MVNO in South Africa and the rest of Africa. What the MVNO offers to consumers and governments, particularly those looking to drive deeper penetration, is an opportunity to exploit the power of the MVNO model to bring connectivity to a greater audience across African markets.” 

– Andre Wills, Managing Director, Africa Analysis Team

One of the primary reasons for the untapped potential of MVNOs in Africa is the lack of regulatory support. Wills elaborated, “There isn’t sufficient regulatory support across most African countries to see the introduction of MVNOs into their markets.” The regulatory environment in Africa is highly fragmented, with about 55 different regimes, each with its own nuances. However, the necessity for digital government services during the COVID-19 pandemic has spurred many countries to drive digitization, which must now translate into regulatory changes. 

Beyond regulatory challenges, MVNOs face the challenge of carving out a unique market position. Wills emphasized the importance of integrating additional products and services, such as fintech, to differentiate from traditional MNOs.  

“Putting the regulatory hurdle aside, it’s down to the MVNO to carve out a place in the market. One challenge is offering communication services—voice and data—that all MNOs offer. To differentiate, MVNOs need to integrate other products and services, like fintech and communication services. Given the large unbanked community across Africa, it fits a unique need.”  

– Andre Wills, Managing Director, Africa Analysis Team

For MVNOs to ensure growth and sustainability, Wills identified two key factors: strong branding and effective customer operations.  Also, focusing on customer operations is essential to keep the business running smoothly and retain customers. 

Over the next five years, we can anticipate a doubling or tripling of MVNO subscribers, with even more substantial growth in the following decade. “Currently, about 1.1 billion mobile customers have no access to MVNO services. Once key markets like Nigeria, Kenya, and Ghana enable MVNO services, we’ll see strong growth,” he predicted. 

AI is set to play a crucial role in the evolution of MVNOs. Wills pointed out that AI is already being leveraged by existing mobile network operators to refine their customer value propositions and enhance efficiency. With the support of AI and a focus on financial inclusion, MVNOs can play a pivotal role in Africa’s digital transformation, bridging the connectivity gap and driving economic development across the continent.