Across Malawi, mobile devices are very popular, in that people’s interest in wanting to invest in them is consistently growing. Much like across the rest of the continent, mobile devices offer an easy, convenient, and supposedly cost-effective way to connect to the rest of the world. In African nations, where mobile networks have been established and data is offered at an affordable rate, businesses have been able to utilize the technology to become more productive and efficient.
People are already embracing the internet and its many options, but the reach of mobiles is still relatively weak in Malawi. The current state of mobile, and subsequent internet access, is one that could benefit greatly from reform, even though there is a portion of the population making full use of what’s presently on offer.
The untapped potential of Malawi’s mobile market
It’s clear that Malawians are in the right cultural environment, and have the correct user technical skills, to adopt the internet quickly, but the right environment of affordable internet and smartphone connections are yet to arrive. Policy and regulatory framework indicate that internet access is treated as a luxury, despite the international community treating it as integral to national and socio-economic development.
In 2014, it was recorded that Malawi was the most expensive nation in terms of mobile device affordability, relative to average wages, with costs being around 56.29 percent of the average citizens’ monthly earnings. This even exceeded the 52.55 percent and 51.63 percent rates posted by Madagascar and the Central African Republic at the time. The cheapest in Africa were much more aligned to the global standard, with the likes of Botswana granting mobile costs at 1.64 percent of average monthly earnings.
Five years later, the number of people using the internet more than doubled. However, that only represented a rise from 5.83 percent of the population having internet access in 2014 to 14.2 percent by December 2019. Mobiles, the primary tool for accessing the internet, also rose in penetration, with Malawi sitting a 41.3 percent. Although, it was found that the affordability of the internet hasn’t improved in the nation, with the price for a standard monthly internet package costing close to 89 percent of the average salary.
Malawi has since been labeled as a nation of untapped potential in regards to eCommerce. The presence of a functional eCommerce scene could move the country closer to reaching its development goals. However, it is said that the sector is presently too unstructured and unorganized, with low internet access, due to high access costs, being fundamental inhibitors of the potential digital economy that should be prioritized.
One of the key aspects which have led to such incremental advances over the last five years is the competing companies. In Malawi, and in many emerging nations to mobile internet, the lack of competition leads to slow growth and has greatly hindered the market. Competition is integral, particularly in technology sectors, to goods and services becoming affordable to the masses.
People are becoming more vocal for the issue of networks needing to become much more user-friendly in Malawi. Noel Lipipa, Member of Parliament for Blantyre City South Constituency, has called for regulatory body MACRA to order mobile companies Airtel and TNM to be clearer with their data tariffs. He also called for them to stop depriving consumers’ unused data based on their data expiry models – which are, in themselves, extremely unfriendly to users.
Early adoption proving that Malawi is already mobile-savvy
Mobile devices and the use of the internet via smartphones is widely inaccessible right now. Still, the portion of the Malawian population that has made it online is utilizing its capabilities for the purposes of entertainment, money, and communications.
Mobile money has taken the world by storm, with Malawi building into the scene. While mobile transactions are being dominated by airtime purchases and cash-in or cash-out services, business to business transactions are on the rise. Around 20.6 percent of the total value of transactions made in this way are between businesses. Internet banking subscribers also registered an uptick, with the December 2019 numbers showing a 5.6 percent increase to over 197,000 subscribers.
One of the major industries which have become a focal point for mobile users is the entertainment industry. Having convenient access to the internet opens the doors to online-based movies, shows, books, games, and other entertainment titles. Online entertainment, in particular, invariably sees a considerable rise in activity when their mobile penetrations increase, mainly when the mobile internet is being accessed.
Offering a combination of communications and modern entertainment to many, social media is another sector that sees a substantial rise in users as soon as mobiles take hold in a region. By the start of 2019, it was found that there were around 510,000 people who accessed social media sites on their mobile, which makes up the vast majority of the total active social media users in Malawi (540,000). While it only amounts to a 2.6 percent penetration rate, it’s clear that many people who have access are enjoying social media platforms.
The relatively small segment of the Malawian population that does have access to the mobile internet is seemingly utilizing a vast range of its features. However, there are still significant factors stopping the rest of the nation from joining the mobile revolution.
