Egypt, South Africa Power Africa’s Smartphone Growth as Market Faces Digital Divide

Africa’s smartphone market posted its eighth consecutive quarter of growth, with Q1 2025 shipments rising 6% year-on-year to 19.4 million units, according to a new report from Canalys  (now part of Omdia). The growth defied global trends amid economic headwinds.

Africa’s smartphone market  kicked off 2025 on a high note as regional shipments grew for the eighth consecutive quarter. According to Canalys (now part of Omdia), shipments climbed 6% year on year in Q1 2025, reaching 19.4 million units. While other regions saw weaker demand for entry-level devices, Africa benefited from resilient offline retail activity and renewed vendor focus on broad-based market coverage. Q1 momentum was also supported by targeted policy moves in key markets, easing currency volatility and early-year product refreshes aimed at the value-conscious segment.

Egypt remained North Africa’s top market, with shipments growing 34% year on year in Q1 2025. This surge was driven by IMEI whitelisting  to tackle grey-market devices, greater macroeconomic stability and a renewed emphasis on local manufacturing. Algeria’s smartphone market witnessed 16% growth, supported by a mix of government policies, telecom advancements and growing consumer demand. The “DZ Mob Pay” launch in Q1 and earlier mobile payment initiatives are driving digital adoption.

In Sub-Saharan Africa, South Africa led the way with 14% growth, driven by government efforts such as removing a 9% luxury excise tax on smartphones priced under ZAR2,500 (US$137) and phasing out 2G/3G networks to expand access to 4G and 5G. Conversely, Nigeria’s market contracted 7% amid ongoing economic pressures, which shifted consumer focus toward essentials. Nonetheless, the country’s large, youthful and tech-savvy population continues to represent long-term potential. Kenya saw modest 1% growth, but early signs are positive, driven by the steady adoption of flexible financing models .

TRANSSION eases as Samsung and Xiaomi find fresh traction in Q1 2025 

After seven straight quarters of growth, TRANSSION saw a 5% annual dip in Q1 2025. Competitors have begun replicating their three-tier channel model, built on national distributors, regional wholesalers and micro-retailers offering credit, promotions, and localized after-sales support. This has enabled deep reach, but rivals are now winning over young shoppers with sleeker designs, better specs and bolder marketing. Samsung, holding a 21% market share, performed strongly in South Africa and Egypt. Even as it pushes premium devices, its A-series models such as A06 and A16, comprise 60% of its total shipments, highlighting mass-market appeal. Xiaomi posted 32% growth, led by Egypt and Nigeria, and a robust performance of the Redmi 14C and A-series models. OPPO grew 17%, blending local assembly pilots with omnichannel pushes around its A-series and Reno lines. HONOR saw rapid 283% growth, lifted by its premium Magic series and 5G bundles with MTN and Vodacom, which lifted its brand visibility and demand across key markets.

– Manish Pravinkumar, Principal Analyst, Canalys (now part of Omdia)

Navigating complexity: Africa’s smartphone market faces a delicate 2025

Africa’s smartphone market holds promise in 2025, but persistent economic challenges are keeping growth in check. While vendors and telecom operators actively invest in long-term digital growth, short-term challenges persist. Consumers remain under pressure from rising living costs and bureaucratic inefficiencies in several African economies, which will dampen or delay critical investment plans. However, the market shows signs of resilience, with 4G devices accounting for 85% of shipments and the mid-tier segment (US$100 to US$199) commanding a 42% share in Q1 2025. But this reflects constrained purchasing power, limiting demand for higher-spec upgrades. The market’s dependence on financing partnerships, such as with OnPhone Mobile and LOOP in Kenya, EasyBuy in Nigeria, improves access but raises flags around consumer debt sustainability.

Canalys (now part of Omdia) forecasts Africa’s smartphone market to grow by a modest 3% in 2025, amid persistent challenges such as sluggish infrastructure development, rising sovereign debt and macroeconomic instability. Global trade disruptions, driven by US-China tariff tensions, are expected to dampen consumer sentiment in major economies, with cascading effects on emerging markets. As investment flows tighten, Africa’s economically sensitive markets face increased volatility. While 4G and early-stage 5G deployments offer promise, they require high capital commitments. Urban youth, driven by digital aspirations, represent a strong demand base. Yet, limited disposable income and growing reliance on financing continue to constrain broader market stability.

– Manish Pravinkumar, Principal Analyst, Canalys (now part of Omdia)