Zain

Research report highlighting the socio-economic impact of mobile telephony in Sudan

- Zain and Ericsson commissioned report highlights how mobile communications creates jobs, generates wealth and saves lives
 
* To download the complete report in PDF, please click here 
**To view a brief video on Sudan and the report, please click here
 
Khartoum, Tuesday, 23 March 2010
 
Zain, the leading provider of mobile telecommunication in the Middle East and Africa, in association with the global telecom equipment supplier Ericsson (NASDAQ: ERIC), commissioned and published a groundbreaking report highlighting the social and economic impact of mobile communications in Sudan, where Zain is the biggest operator with a customer market share of 60%.
 
Titled ‘Socio-Economic Impact of Mobile Communications in Sudan’, the report that builds on two years of research and covers four basic areas: Khartoum, Juba in the South, in Darfur, and in the North.  The study is comprised of three separate sub reports, covering many dimensions of social and economic development:
 

1. “The Nile Connection” which examined the social and anthropological factors around how people have traditionally, and today, communicate in Sudan (de Bruijn and Brinkman)

2. “Economic Impact of Mobile Communications in Sudan” – a financial analysis of the economic factors, considering both supply and demand side effects (Deloitte LLP, Business Advisory Firm)

3. “Sudan: Mobile Communication a driver for growth?” A survey to assess the needs  of mobile customers in Sudan, with more than 1000 survey respondents from the four different areas (Majanen and Kruse)

 
Mobile telephony in Sudan has gone through a period of substantial development and change. The reports highlight that in 2008, the total economic benefit of the mobile industry to the Sudanese economy contributed SDG 5.4 billion (US$2.4 billion) to the Sudanese economy, at the time 4% of GDP with a possible additional 1% in hidden impact.
 
Also the report draws attention to the fact that as well as providing over 40,000 jobs, the sector can claim to be responsible for a 0.12% growth in GDP for every 1% increase in market penetration. Given also that at the end of 2008, market penetration was still only at 28% or roughly 10 million customers, there is great potential for growth for the sector and for the benefit of the Sudanese economy as a whole. It is worth noting that the penetration rate at the end of 2009 exceeded 42% or 15 million customers. The mobile phone is also an important bridge to the Sudanese Diaspora worldwide with a highly significant, if not precisely calculable, contribution to GDP.
 
Zain Group Chief Executive, Mr Nabeel Bin Salamah hailed the report’s findings as evidence Zain’s commitment to good business practice allied to socio-economic advancement. “Once again, Zain has shown that we are genuine partners with the nations in which we operate,” said Bin Salamah. “It also demonstrates how blessed we are in that what we do not only satisfies our stakeholders and delivers technological advancement, but also has the power to change how we live. Wherever the Zain logo is present there is hope for human improvement, showing that we deliver on our promise of ‘A wonderful world’."
 
Ericsson’s Vice President for Sustainability & Corporate Responsibility Mrs Elaine Weidman-Grunewald said, "Mobile communications has been proven to help in the development and prosperity of societies, especially in developing countries. As part of our commitment to making communications more affordable and accessible for all, we  undertook this study  together with Zain  to  quantify the  key economic and social impacts  that communications  is having on the Sudanese society, one of Africa's fastest growing mobile markets . The study finds that mobile communications is greatly aiding the micro-economic activities of traders and entrepreneurs in Sudan, as well as helping families remain in contact across the rural-urban divide of the country."
 
The main thrust of the report however demonstrates how mobile telephony has not only created direct employment within the telecom sector itself, but has also had a major impact on Sudanese agriculture, the nation’s largest industry, not least by providing valuable weather updates and warnings, and supporting a mobile marketplace by linking produce buyers to sellers, providing up to date market pricing, and supporting auctions and bidding.
 
On a social level, as networks extend beyond the Khartoum region to include South Sudan and even conflict-ridden Darfur, mobile telephony has also allowed families to stay in contact in time of conflict, migration, and large population displacements. It has also been invaluable in supporting health, education, and family, especially in the refugee camps.
 
The scale of mobile sector investment within total foreign investment is substantial. Leading international consulting firm, Deloitte, estimates that in 2008, mobile network operators invested over SDG 242 million (US$108 million) in new capital equipment, while foreign ownership of the fixed operators has also driven further inward investment especially on mobile network technology.
 
The findings also drew praise from Jeffrey D. Sachs, the Director of the Earth Institute, and Special Advisor to United Nations Secretary-General Ban Ki-moon. “The report underscores the central fact that mobile telephony offers a remarkable, indeed unique, tool for economic development, and can even reach the poorest of the poor through creative approaches by the providers and users,” said Professor Sachs, who has described mobile telephony as ‘the single most transformative technology development’ of recent times.
 
ENDS
 
About Zain:
Zain is a leading telecommunications operator across the Middle East and Africa providing mobile voice and data services to over 70 million active customers as at 30 September, 2009 with a commercial presence in 23 countries.
Zain operates in the following countries: Bahrain, Burkina Faso, Chad, the Republic of the Congo, the Democratic Republic of the Congo, Gabon, Ghana, Iraq, Jordan, Kenya, Kuwait, Malawi, Madagascar, Niger, Nigeria, Saudi Arabia, Sierra Leone, Sudan, Tanzania, Uganda and Zambia. In Lebanon, the company manages ‘mtc-touch’ on behalf of the government. In Morocco, Zain owns 31% of Wana Telecom through a joint venture.
Zain offers innovative services in its markets such as ‘One Network’, the world’s first borderless mobile telecommunications network enabling customers when abroad to receive calls and sms without charge and to make voice and data calls at local rates throughout 22 countries in Africa and the Middle East. This service allows a customer to top up airtime in their home country or from more than 1,000,000 outlets within Zain’s ‘One Network’ footprint.
The Zain brand is wholly owned by Mobile Telecommunications Company KSC, which is listed on the Kuwait Stock Exchange (Stock ticker: ZAIN). Zain is listed in the Financial Times’ Global 500 Index which ranks the world’s largest companies based on market capitalization. For more, please visit www.zain.com  or email info@zain.com
 
About Ericsson:
Ericsson is the world’s leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 2 billion subscribers and has the leading position in managed services. The company’s portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices. 
Ericsson is advancing its vision of being the “prime driver in an all-communicating world” through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 80,000 employees generated revenue of SEK 206.5 billion (USD 27.1 billion) in 2009. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on OMX NASDAQ, Stockholm and NASDAQ New York. 
 
About Deloitte
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms. Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTT and its member firms. The information contained in this press release is correct at the time of going to press.

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