Mobile Telephony in Developing African countries (Essay Sample)

Economic impact of mobile telephony in developing African countries
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Introduction
Over the recent years, sub-Sahara Africa (SSA) has recorded one of the highest regional growth in the world in terms of mobile telephony communication. Jagun, Heeks & Whalley (2008) estimate that between the years 2002 and 2007, there was an increase of about 49% per year in the number of mobile telephone subscribers. This trend continues in the same style, and in the coming few decades, it is projected that very few people will lack access to mobile telephones. Additionally, the governments of the countries in this region have increased investments in mobile telephony infrastructure, besides welcoming investors who have expanded the sector. This is in preparation for future economic growth for the countries in this region. Micro-entrepreneurs have proved to be one of the strongest contributors to the phenomena of national growth, given the competitive nature and massive investment involved. Moreover, billions of dollars have been invested into improving telecommunication in these countries, and one of the most targeted groups has been the micro-entrepreneurs. This paper looks at the effects of mobile telephony on economic development and growth in sub-Sahara Africa by focusing on the micro-entrepreneurship sector.
Background and literature review
According to Jagun et al (2008), the availability and cost of information are some of the leading characteristics that determine the way people communicate, and additionally, the direction taken by the micro-enterprise sectors in the country. As such, the developments in communication have a profound impact on the critical foundation of micro-enterprise, which in turn, determine the economic development of a country. Similarly, Overa (2006) asserts that the process of commerce in a country is greatly influenced by the informational characteristics that are prevalent. This way, any challenges facing the information and communication sector have a direct and measurable impact on the economic development pattern of a country.
Albu & Scott (2001) attribute the pace of growth in commerce and supply chain to the level of efficiency in communication. Particularly, the rate at which information is exchanged between traders operating from distant locations determines the manner in which business in conducted between the two. In SSA, there are people who take the roles of intermediaries between business-men, and their role is to act as the linking element to ease communication. However, given the high level of development of mobile telephony over the past few decades, these intermediaries have been reduced, and risks involving having them in the communication chain, such as distortion of information, wiped out. This has helped the micro-entrepreneurs to conduct their businesses more efficiently and profitably, and as such, contribute to the larger economic growth of their respective countries.
By observing such trends, Jagun et al (2008) argue that mobile telephony contributes to the economic development of the SSA by altering the supply chains. By reducing the level of localization in the trade sector, the micro-entrepreneur environment is positively impacted. Similarly, micro-entrepreneurs have developed a perception that using mobile telephony not only increases the speed of trade, but also reduces costs and expands limits of operation. At the same time, the positive reception of mobile telephony communication in micro enterprise has led to more investments in connecting people with this technology. The SSA governments have included this on their economic development and national growth agendas by inviting more investors to increase the level of mobile telephony connection.
Rationale
Research and other related literature have established that indeed the sub-Sahara Africa countries are developing in term of mobile telephony communication. Using this information, this research aims to evaluate the reality of mobile telephony in these countries, in terms of its impact on micro-enterprise. At the same time, the role of entrepreneurship in the economic development of the SSA countries will be analyzed, and using the information, informative conclusions be made. Given that network industries have increased signific...