According to Wireless Intelligence*, the uptake of GSM in Africa contributes 10% of worldwide cellular growth, which is expected to reach three billion users by end-2007.
The continent's GSM growth is also fuelling an increase in the call centre market, which goes beyond using Africa as an outsource location for offshore companies.
Africa's popularity as a location for international companies' call centres is becoming increasingly well-known. While South Africa has led the charge in this area to date, countries like Mauritius are fast becoming strong contenders for offshore call centre contracts as conditions in that country become more conducive to growth and expansion.
Mauritius - and other growth markets in Africa - shares time zones with most of Europe, and also offers language similarities like English and French, active government support, good educational levels and a flexible workforce, making it compelling for international companies looking for cost-effective call centre solutions.
Beyond offshore
A lesser-known fact is that many African governments and companies are also showing more interest in implementing inbound call centres. Historically, Africa has not followed the world trend of using call centres to communicate with customers for many socio-economic and political reasons, including a dearth of communication infrastructure.
The fact remains that the behaviour of cellular users in Africa is changing.
Dave Paulding, regional sales manager, UK and Africa for Interactive Intelligence
However, the advent of cellular technology in Africa is fast changing this. GSM uptake on the continent means that more Africans have access to communication than ever before. This means that consumers can, for the first time, actually call a customer contact centre as they have access to the communication tools to do so.
But most users are not accustomed to communicating with companies in this way. In fact, research has shown that initially cellular users only make voice calls, and the use of other services only comes once the users mature and their understanding of the technology increases.
During the 10 years of cellular technology usage in Africa, users have become more comfortable with the technology and have increased the scope of their service from a simple phone-to-phone call, to include calling the local GSM operators' call centres.
The GSM operators report that users are not yet necessarily calling for services: many of them have discovered that a call to the contact centre is free, and are just interested in having a chat with the call centre operator, or being put on hold to listen to the music!
However, the fact remains that the behaviour of cellular users in Africa is changing, and the barriers for companies and governments wishing to use call centres are diminishing. GSM cellular technology provides a natural invitation for users to call, and it's free, which makes it easy for users. This will start a trend or habit for them to phone others up to ask for services.
As a result, many African governments and companies - particularly utility firms such as the energy organisations - are showing more and more interest in implementing call centres within their countries of operation. This represents significant opportunities for service providers in Africa.
Realistic expectations
While the growth of GSM in Africa represents significant opportunities for technology service providers, it is important to have realistic expectations. Many companies overestimate the scale or the availability of the opportunity, and many don't understand the reality of doing business in Africa.
It is important to have an understanding of how quickly things will be up and running, pay cycles, and the way in which business is done. If these can be overcome, there are great opportunities for technology service providers in Africa.
* Wireless Intelligence is a joint venture between consulting firm, Ovum and the GSM Association.
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