Central African Republic: Political Uncertainty to Hinder Short-Term Growth: Jsbmarketresearch

Central African Republic: Political Uncertainty to Hinder Short-term Growth

Released On 24th February 2016

Summary

The total telecom service revenue in the Central African Republic will be $49.0m in 2015. Over the next five years, we expect the Central African Republics Total Market revenue to grow at a CAGR of 4.7% to reach $61.7m in 2020. The telecom market is one of the least developed in the region and significantly smaller than other markets such as Togo, Benin, and Mali. A key reason for this is the ongoing internal conflict that has constrained development of the market. Service revenue growth over the next five years will be driven primarily by mobile services as operators continue to invest in increasing their network coverage. However, in the short-term the telecom market will be significantly hampered by ongoing security issues and political instability.

Key Findings

- It expects total telecom revenue to grow at a CAGR of 4.7% during 2015-2020 to reach $61.7m. The volatile political and security situation will dampen growth in the short-term. However, long-term plans by operators to expand mobile network coverage and the expected introduction of 3G services by additional operators will drive long-term growth in the telecom market

- The top two operators by revenue - Orange CAR and Telecel CAR - will account for 69.6% of total telecom service revenue in 2015. Despite the unstable political situation, mobile operators are raising funds to invest in expanding their operations

- Over the next five years, operators should seize opportunities to roll out 3G services as the political situation is expected to stabilize in the long run. Smartphone vendors also have an opportunity to tap into a growing mobile subscriber base by introducing low-priced devices. Investors should note the risks to their investments stemming from the civil unrest that is expected to continue to affect the Central African Republic in 2016

Synopsis

Central...