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Ambient Insights The 2012-2017 Africa Mobile Learning Market: Regional Edition
Table of Contents
List of Tables ...................................................................... 3 List of Figures ..................................................................... 3 Abstract ............................................................................. 4
The Major Catalysts in the Africa Mobile Learning Market ......................... 6
The Boom in Mobile Learning VAS ....................................................................7 The Adoption of Tablets and Personal Learning Devices in the Schools ..................8 Smarter Low-cost Devices and Faster Networks Pervade Africa .......................... 10 Direct Carrier Billing Energizes the App Ecosystem ........................................... 12 Leapfrogging the Digital Divide In Africa ......................................................... 13
Ambient Insights The 2012-2017 Africa Mobile Learning Market: Regional Edition
List of Tables
Table 1 - 2012-2017 Revenue Forecasts for Mobile Learning by Fourteen Countries in Africa (in $US Millions) ................................ 19 Table 2 - 2012-2017 Africa Revenue Forecasts for Mobile Learning by Five Product Types (in $US Millions) ............................ 55
List of Figures
Figure 1 - 2012-2017 Top Africa Mobile Learning Five-year Growth Rates by Country .............................................................. 4 Figure 2 Primary Catalysts Driving the 2012-2017 Mobile Learning Market in Africa .............................................................. 6 Figure 3 - 2012-2017 Africa Mobile Learning Five-year Growth Rates by Five Product Types ........................................................ 56
Ambient Insights The 2012-2017 Africa Mobile Learning Market: Regional Edition
Abstract
"The future of education in Africa is mobile. Mobile learning, either alone or in combination with existing education approaches, is supporting and extending education in ways not possible before." Steve Vosloo, Mobile Learning Specialist, UNESCO BBC Future, August 2012 Africa has the highest Mobile Learning growth rate in the world. The fiveyear compound annual growth rate (CAGR) for the Mobile Learning market in Africa is 38.9%. Revenues will grow more than five times to reach $530.1 million by 2017, up from the $102.4 million reached in 2012. Consumers are driving the current market, with academic buyers close behind.
Over 130 suppliers operating in Africa are cited in this report to help international suppliers identify local partners, distributors, resellers, and potential merger and acquisition (M&A) targets.
This report includes revenue forecasts for fourteen Africa countries: Algeria, Angola, Ghana, Kenya, Mozambique, Nigeria, Rwanda, Senegal, South Africa, Tanzania, Tunisia, Uganda, Zambia, and Zimbabwe. Seven of the fourteen countries analyzed in this region have growth rates above the 38.9% aggregate rate.
Figure 1 - 2012-2017 Top Africa Mobile Learning Five-year Growth Rates by Country
Ambient Insights The 2012-2017 Africa Mobile Learning Market: Regional Edition
Several countries in Africa have mobile penetration rates over 100% including Algeria, Ghana, Morocco, Senegal, South Africa, and Tunisia. Adoption rates are growing very fast in every African country analyzed in this report. The number of mobile subscribers in Zimbabwe grew from less than 2 million in 2009 to over 11 million subscribers by the end of 2012 The number of mobile subscribers in Ghana jumped from 23.2 million in 2011 to 27.5 million in 2012.
Ambient Insight has revised our forecasts significantly upward for most African countries. In our syndicated reports, we only include revenue forecasts for countries with over $1 million in revenue. We have added nine more countries to our Mobile Learning analysis for Africa in just the last year. Africa is not a single cohesive market. There are 56 countries in Africa with over 1,500 spoken languages. Suppliers that compete in the region must market products to specific countries and to particular demographics inside each country. This report provides suppliers with the competitive intelligence to do this. The app ecosystem across Africa is relatively new. The device makers and the telecoms were first to market with app stores; they began launching app stores in several countries starting in early 2011. Device makers and telecoms are quite active in the Africa Mobile Learning market and offer significant partnering opportunities for international suppliers. The device makers are now expanding their app stores throughout Africa. This report identifies the device makers and telecoms active in each country. Unlike other regions of the world where many telecoms have closed down their app stores, they are still opening new app stores in Africathe most recent being MTN's app store in Nigeria, which opened in July 2013. Apple opened app stores in sixteen African countries in the last two years including Algeria, Angola, Ghana, Mozambique, Nigeria, Tanzania, and Zimbabwe. In December 2012, Microsoft opened twenty app stores across Africa including Angola, Kenya, Mozambique, Rwanda, Senegal, Tanzania, Uganda, Zambia, and Zimbabwe. Amazon opened their first app store in Africa in South Africa in late 2011. They opened app stores across the continent in May 2013. The BlackBerry World app store is now available in 37 African countries. BlackBerry has taken an active role in supporting the local development of apps in Africa. As of January 2013, there were over 80 universities and colleges participating in the BlackBerry Academic Program (BAP).
Because of their own app stores, direct carrier billing agreements with device makers, and their Mobile Learning VAS offerings, the telecoms are major players in the Mobile Learning market in Africa.
Ambient Insights The 2012-2017 Africa Mobile Learning Market: Regional Edition
While app stores are new to the region, Mobile Learning Value Added Services (VAS) products have been on the market in Africa since 2009 when Nokia launched Nokia Life in Uganda. Nokia Life launched in Nigeria in 2010. Yet the majority of Mobile Learning VAS products came on the market in 2012 and 2013.
Combined, these catalysts have made Africa the most vibrant Mobile Learning market on the planet.
Figure 2 Primary Catalysts Driving the 2012-2017 Mobile Learning Market in Africa
Ambient Insights The 2012-2017 Africa Mobile Learning Market: Regional Edition
An interesting Mobile Learning VAS is Kytabu eTextbook rental service for tablets in Kenya. The content is designed for PreK-12 students and streamed in real time to their tablets. Their parents "rent" the eTextbooks for three cents an hour.
Ambient Insights The 2012-2017 Africa Mobile Learning Market: Regional Edition
India, Nokia Life has expanded to over 30 countries, and as of June 2013, had reached more than 100 million people with Mobile Learning content in 18 languages. Africa has become the proving ground for Mobile Healthcare (mHealth) services with over 95 active programs operating across the region by the end of 2012, the most for any region in the world. The mHealth initiatives are heavily concentrated in Kenya and Uganda, so far. All mHealth initiatives employ educational content and many are designed solely for healthcare education. The telecoms partner with content providers and have become a lucrative distribution channel for digital education content publishers. Over 35 of these telecoms are identified in this report. An example of an "agro" Mobile Learning VAS is iCow, officially launched by Safaricom in Kenya in July 2013. The service offers a range of agricultural education and advice and had been in a pilot stage prior to the formal launch. At the formal launch, the service had over 6,000 active users that pay the equivalent of four cents per SMS message. Wikipedia Zero is a free Mobile Learning VAS that includes a text-only version of the Wikipedia site. The Russia-based telecom VimpleCom distributes Wikipedia Zero in Africa. As of September 2012, VimpelCom had 212 million mobile subscribers in 18 countries across Asia and Africa. "The main target for Wikipedia Zero is people whose primary or only internet access is via a mobile device."
Vodafone's Healthline Mobile Learning VAS in Ghana is an SMSbased product that provides subscribers with a range of healthcare related educational content and advice. Vodafone charges five cents per message.
Ambient Insights The 2012-2017 Africa Mobile Learning Market: Regional Edition
In June 2013, the governor of Osun State in Nigeria announced the Opon-imo (tablet of knowledge) program that will distribute tablets to every secondary student in the state. The first phase will deploy 150,000 tablets preloaded with "an e-library of 63 eTextbooks, a virtual classroom, and an integrated test zone." In June 2013, the government in Gauteng, a highly urbanized province in South Africa that includes the cities of Johannesburg and Pretoria, announced that they would distribute 88,000 Huawei tablets to 2,200 schools in the province by January 2014. In June 2013, the Kenyan government announced a four-year $622 million project to provide computing devices to every primary and secondary student in the country. There are just under 10 million school children in Kenya. In July 2013, the government indicated that a "significant" amount of those devices would be tablets.
IT School Innovation (ITSI) is a South African Mobile Learning supplier serving the PreK-12 segment. ITSI has a deal with Samsung and the ITSI MobiMath, MobiWord and MobiSpeed apps were preloaded on over three million Samsung devices in 2012. The NGO Worldreader distributes Kindle eReaders to schools in Africa preloaded with over 1,200 eBooks localized for the various countries in which they operate including Nigeria, Ethiopia, Ghana, Kenya, Uganda, Rwanda, and Tanzania. Their goal is to reach over one million children "across the world" by 2015. Tablet adoption is also gaining traction in the higher education segments in Africa. In November 2012, Ghana Technology University College (GTUC) launched a new educational tablet called the Campus Companion. The tablet was built in collaboration with UK-based Learning Nugget. The tablet comes preloaded with Mobile Learning content from several educational publishers and is sold to GTUC's 3,000 students at heavily discounted prices. In May 2013, Microsoft launched a tablet-based initiative that targets university students in Dar es Salaam, Tanzania. UhuruOne, a local ISP, offers an inexpensive bundle that includes a Windows 8 tablet, wireless broadband connectivity, and educational applications. In August 2013, the University of South Africa, the largest online education provider in Africa with over 310,000 students, launched a program to provide students with 3G connectivity and a tablet at "massively discounted prices." Students can buy subsidized tablets for as low as $125 and get 3G access for the equivalent of $10 a month from any of the four major telecoms. Personal learning devices (PLDs) are becoming popular in Africa with domestic suppliers selling PLDs preloaded with content designed for particular countries. There are four PLDs in South Africa alone including Phusion Media's MobiPad, Esquire Technologies' Geeko Kids tablet, Wise Tablets' TAB4Kids,
Samsung launched their Smart School solution in Nigeria in May 2013. It was the first Samsung Smart School deployment in Africa.
Ambient Insights The 2012-2017 Africa Mobile Learning Market: Regional Edition
and Future Mobile Technology's TouchTutor tablet. A new Zambian company called iSchool sells a personal learning device (to both schools and parents) called the ZEduPad, which "is packed with primary school lessons for Grade 1-7, in eight local languages, and has many other apps for education, farming, and health."
Alltel Limited launched the first indigenous personal learning device in Ghana in January 2012. Alltel's K-pad tablet is designed to "provide e-learning and e-health solutions for the Ghanaian market."
There are 200,000 OLPC (One-Laptop-Per-Child) laptops used in the schools in Rwanda. In October 2012, the Rwandan government announced they would purchase one million more OLPCs by 2017. As of early 2013, the latest OLPC specification is not a laptop, but a tablet. The additional OLPCs purchased by Rwanda will be the new tablet OLPC. Intel's Classmate is a low-cost educational laptop preloaded with educational content, which many school systems in countries across Africa including Kenya, Nigeria, and South Africa have purchased. Classmate is a product specification and domestic manufacturers build the actual device. In late 2012, the new Classmate specification became a tablet. In August 2013, Intel launched a new branded educational tablet simply called the Intel Education Tablet, which is also sold pre-loaded with educational content. A major trend influencing the adoption of tablets and PLDs in the schools is the recent availability of very low-cost tablets "flooding" the markets in every country analyzed in this report. Domestic manufacturers are now selling tablets priced under $200.
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Ambient Insights The 2012-2017 Africa Mobile Learning Market: Regional Edition
African markets." In February 2013, Safaricom in Kenya announced that they would phase out feature phones completely in favor of low-cost smartphones. In May 2013, Vodacom reported it had six million smartphones on its network in South Africa. A major learning technology catalyst in Africa is the recent arrival of fiber optic connectivity. Prior to this, satellite access was the primary connectivity medium, which is very expensive. This was inhibiting the uptake of Internet connectivity. The telecom industries across Africa are undergoing a rapid expansion due to the recent connections to international fiber optic cables. As of the end of 2012, ten major undersea cables connect Africa to the global Internet. This development ends the region's dependency on expensive satellite connectivity and dramatically increases the bandwidth available to customers.
In January 2013, the Nigerian government began distributing over 10 million Internetenabled phones to farmers in the country.
The availability of fiber optic connectivity has created a price war with telecoms and ISPs dropping prices to attract customers. It has also created a boom in the adoption of Internet and mobile technologies. 3G and 4G wireless networks are rolling out all over Africa. By the end of 2012, all of the fourteen countries in this report had operational 3G networks. Eleven of the fourteen had launched 4G networks. In June 2013, the government of Rwanda announced a joint venture with South Korea's KT Corporation to build a nationwide 4G network that will provide wireless broadband to 95% of the population in three years. This is the most comprehensive roll out of 4G in Africa. The new 4G network is being defined as a "wholesale" network with the government planning to resell connectivity to the telecoms. The faster networks are the prerequisite for smartphones and the device makers are flooding the market with cheap smartphones. In February 2013, Samsung released their REX series of phones priced for emerging markets starting as low as $68. In June 2013, South Africa-based Vodacom launched a $70 smartphone. In July 2013, Nokia launched their Asha 210 smartphone in Kenya, Tanzania, and Uganda priced at $76, $85, and $87, respectively. In August 2013, China-based Spreadtrum Communications released two smartphone in the Africa market priced in the $40 range. An executive stated in the press that "These devices are having a massive effect on the African market, bringing Internet services in reach for more people than ever before."
In March 2013, Vodacom reported that they sold 1.6 million smartphones in 2012, a 30% increase from the year before. In May 2013, they reported
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Ambient Insights The 2012-2017 Africa Mobile Learning Market: Regional Edition
that they had over 6 million smartphones on their network in South Africa, which is 80% of all smartphones in use in that country. In February 2013, Microsoft launched the three-year, $70 million Microsoft 4Afrika Initiative. According to Microsoft, "the 4Afrika Initiative plans to help place tens of millions of smart devices in the hands of African youth." As part of the initiative, Microsoft and Huawei launched the low-cost Huawei 4Afrika smartphone. At launch, the phone was available in Angola, Kenya, Morocco, Nigeria, and South Africa. The Huawei 4Afrika phone is "targeted toward university students, developers, and first-time smartphone users." The availability of powerful inexpensive mobile devices and the recent arrival of fiber optic and wireless broadband connectivity across the African continent has created an explosion in the rate of mobile technology adoption (and dramatic drops in prices.)
Telecoms with direct carrier billing agreements are now viable competitors to credit card companies across the globe, even in developed economies.
Ambient Insights The 2012-2017 Africa Mobile Learning Market: Regional Edition
In July 2012, VimpleCom's Telecel announced a direct billing agreement with Google that will allow subscribers in Algeria and Zimbabwe to purchase content in Google Play and get billed by the carrier. In February 2013, VimpelCom announced a similar direct billing agreement for Algeria and Zimbabwe with Microsoft and Nokia. Direct carrier billing is already integrated with Nokia's app store by 145 telecoms across 52 countries across the globe. In March 2013, Airtel and Nokia announced a direct billing agreement starting with Airtel subscribers in Nigeria and Kenya. Airtel reported that they would expand the service "across Africa" starting with East Africa. In June 2013, Nokia announced a direct billing arrangement with Vodacom allowing Windows Phone users in South Africa to buy apps via the device and have the charge applied to their monthly bill. Vodacom has a similar agreement with BlackBerry and Google.
In South Africa, over 70% of all mobile users and 85% of high school and higher education students use their phones to access the web.
Ambient Insights The 2012-2017 Africa Mobile Learning Market: Regional Edition
economies. Africans now use their devices for banking, payrolls, healthcare, everyday purchases (like bus fare), agriculture, and social media (the largest social media network in Africa is the mobile Mxit platform.) In December 2012, Riitta Vnsk, Senior Manager in Nokia's Mobile Learning Group, said "Mobile phones are now the laptops of Africa." Mobile banking is widespread in Africa on a scale that dwarfs usage in other regions. The World Bank reports that 15 of the 20 countries with the highest percentages of mobile banking usage are in Africa. By May 2013, Uganda had over nine million mobile money users, triple from the year before. According to an August 2013 report by the GSMA, over 23 million mobile subscribers (74% of the population) in Kenya use mobile banking. By far, this is the highest usage of mobile banking in the world. Africa has become the proving ground for Mobile Healthcare (mHealth) initiatives with over 95 active programs operating across the region at the end of 2012, more than anywhere else in the world. The mHealth initiatives in Africa are concentrated in Kenya and Uganda. Large rural populations across Africa are now avid users of Mobile Learning technology, while relatively few have experienced Self-paced eLearning on a PC. In developing economies, PC penetration is often low, yet mobile subscriptions are quite high. Mobile Learning suppliers are targeting the mobile device as the delivery platform of choice in those economies. Six of the fourteen countries analyzed in this report had mobile penetration rates over 100% by the end of 2012. By the end of 2013, three more countries will also have over 100%. In stark contrast, none of the fourteen countries analyzed in this report had a PC-based Internet penetration rate above 50% as of August 2013. Half had PC-based Internet penetration rates below 25%. Africa has the highest mobile growth rate in the world and by the end of the forecast period, all fourteen countries analyzed in this report will have mobile penetration rates well above 100%. Virtually all of those subscribers will be using smartphones and tablets.
Ten of the fourteen countries in Africa analyzed in this report will be spending more on Mobile Learning than on eLearning by the end of 2013.
In many countries in Africa, accessing the web on an Internet-enabled feature phone or a smartphone is often a user's first Internet experience, in what is often referred to as a Post-PC experience. In this scenario, Mobile Learning is their primary learning technology and they may never be exposed to other learning products. By the end of 2012, four countries in Africa (Kenya, Uganda, Tanzania, and Mozambique) were spending more on Mobile Learning than on Self-paced Learning. By the end of 2013, six more countries will join the ranks with Nigeria, Ghana, Rwanda, Zimbabwe, Zambia, and Senegal also spending more on Mobile Learning than on eLearning.
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Ambient Insights The 2012-2017 Africa Mobile Learning Market: Regional Edition
In the developed economies, Mobile Learning is often seen as a disruptive learning technology, particularly in the consumer and academic segments. It is ostensibly disrupting the legacy PC-based Self-paced eLearning industry. This is referred to as "product substitution" in market research. Buyers in Africa are not substituting Mobile Learning for Self-paced eLearning, they are leapfrogging eLearning altogether. In light of the extraordinary adoption of mobile technology across all sectors in Africa and the rapid growth of the middle class, African thought leaders now bristle about the persistent myths of a digital divide in Africa, still perpetuated by many outside the continent. In July 2013, SEACOM's Suveer Ramdhani said, "Talk about bridging the digital divide has become clichd and patroni zing. Africans have access to smart phones and know how to use them. Combine this with the rise of new broadband communications technologies such as long term evolution (LTE) for high-speed mobile connectivity and there is no reason that Africa should not leap straight into the post-PC era.
All revenues in this report are in $US dollars based on the exchange rate for each country's currency as of May 2013.
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Ambient Insights The 2012-2017 Africa Mobile Learning Market: Regional Edition
In the 2012 market, private academic institutions were more likely than public institutions to purchase Mobile Learning products. This will change over the forecast period as major digitization and tablet adoption efforts roll out across the public schools in the region. Public schools systems in the region are administered by government agencies, and while the government is the actual buyer, this report categorizes those expenditures as PreK-12 spending. Except for telecom companies and commercial language learning companies that buy Mobile Learning products and services to meet the needs of their customers, there is very little adoption of Mobile Learning for corporate training across the region. This mirrors the weak corporate adoption of the product type found in other regions. Governments, NGOs, and non-profit foundations are starting to deploy custom mobile content for literacy, human rights, cultural heritage, civics, health and wellness, public safety, and agro-information. They hire content suppliers to develop educational apps for their constituents.
All of the Mobile Learning product types have healthy growth rates in Africa. Four of the five products have growth rates above 30%.
Mobile Learning VAS products will generate the highest revenues in Africa throughout the forecast period. This is due in large part to the Leapfrog Effect. Africa has the highest growth rate in the world for Mobile Learning VAS. Content suppliers competing in Africa have to know the primary languages of education and training used in the schools, government, and business. Consumer-facing suppliers also need to understand the language patterns in each country. They are different in every country analyzed in this report. This report identifies the official languages, the language of instruction in the schools, and the major languages in use in terms of the percent of the population that speak those languages. There are two Lusophone (Portuguese-speaking) countries analyzed in this report. English is the primary language of instruction in eight African countries covered in this report. Yet, it is rarely that simple in Africa. Many countries in Africa have several official languages. For example, South Africa has eleven official languages and Zimbabwe has three official
For more information about this research, email: info@ambientinsight.com
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Ambient Insights The 2012-2017 Africa Mobile Learning Market: Regional Edition
languages. Even in the presence of large populations that speak indigenous languages, many countries have mandated the use of French or English as the official language of instruction in the schools. In some African countries, the official language of instruction is different in the PreK-12 schools and in the higher education institutions. Even in countries that mandate French or English as the language of instruction, the language used in the early grades is often an indigenous language, depending on the location of the schools, with French or English instruction starting in about fourth grade. This is one factor contributing to the emergence of new domestic firms that are better suited (compared to international suppliers) to develop digital content in the local languages. This report identifies the language parameters for each of the countries analyzed in this report. In Tanzania, the government mandates that Swahili be used as the language of instruction in public primary schools and governmentsponsored adult education centers. However, English is the official language of instruction in Tanzanian public secondary schools and universities. In general, there is a strong consumer demand for early childhood learning and language learning apps in most African countries. Brain training apps are popular in several African countries analyzed in this report. What is interesting is the unique app buying behaviors in each country. No two countries analyzed in this report exhibit the same consumer buying patterns. For example, the language learning apps in demand differ from country to country. This report identifies the specific types of education apps that generate the highest revenues in each country. There is a significant demand for custom content development services in the region, particularly in the public and private academic segments. This report includes the forecasts for Mobile Learning content developed for several types of handheld devices including: Dedicated handheld gaming devices Mobile phones (feature phones and smartphones) Personal media players (PMPs) Tablets and slates Mobile clinical assistants eReaders Personal learning devices (PLDs) designed solely for learning and performance support
There are 31 Francophone (French-speaking) countries in Africa; over 115 million people speak French on the continent.
Personal learning devices are a new distribution channel for educational publishers and packaged content suppliers. All of the African personal learning device suppliers are identified in this report.
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Ambient Insights The 2012-2017 Africa Mobile Learning Market: Regional Edition
In essence, these are dedicated educational tablets. The devices are attractive to consumers (parents) and academic buyers because they are:
Very few PLD suppliers develop their own digital content. Most of the personal learning device suppliers collaborate with third-party education publishers for content.
Designed solely for education Preloaded with vetted educational content Priced significantly lower than general-purpose tablets
Personal learning devices (PLDs) are increasingly popular in Africa. There is a burgeoning middle class across Africa and consumer demand for the PLDS is beginning to mirror other regions around the world with large middle class populations where consumers are avid buyers. Over 130 suppliers operating in specific countries in Africa are cited in this report. This will help international suppliers identify local partners, distributors, resellers, and potential merger and acquisition (M&A) targets. Targeting specific buyers in particular countries with particular product types is the key to generating revenues in Africa. Ambient Insight provides a description of how we categorize product types in Ambient Insights 2013 Learning Technology Research Taxonomy.
Related Research
Buyers of this report may also benefit by the following Ambient Insight market research: The Africa Market for Self-paced Learning Products and Services: 20122017 Forecast and Analysis (Regional Edition) The Africa Market for Digital English Language Learning Products and Services: 2011-2016 Forecast and Analysis (Regional Edition) Ambient Insights 2013 Learning Technology Research Taxonomy
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