Malawi has expanded 4G coverage to 87% of its population and offers relatively low-cost mobile data, but around 80% of people living within network coverage remain offline, highlighting a widening gap between infrastructure availability and meaningful internet adoption.
A new GSMA report estimates that addressing this divide could generate MWK 1.1 trillion ($633.6 million) in additional economic value and support the creation of 490,000 jobs by 2030.
The findings, presented at the GSMA Digital Africa Summit, shift the focus of Malawi’s connectivity challenge from simply building networks towards making smartphones, digital skills and mobile internet services accessible enough for people to actually use them.
4G coverage reaches 87%, but adoption remains low
According to the GSMA report, Driving Digital Transformation of the Economy in Malawi: Opportunities, Policy Recommendations and the Role of Mobile, Malawi has made considerable progress in extending mobile broadband infrastructure.
Fourth-generation mobile networks now cover 87% of the population.
However, the country has one of Africa’s largest mobile internet usage gaps, with approximately 80% of people who live within coverage areas still not using mobile internet.
The figure is significantly above the African regional average of around 65%.
Unique mobile internet penetration in Malawi stands at just 12.5%, while smartphone adoption is estimated at 33%.
The figures illustrate an increasingly important distinction for African connectivity policy. Extending a 4G signal to a community does not automatically translate into internet adoption if households cannot afford suitable devices, lack digital skills or face other barriers to getting online.
“Malawi has made strong progress in expanding connectivity and financial inclusion, but access alone is not enough,” said Caroline Mbugua, senior director of Public Policy and Communications at GSMA Africa.
“With 80% of the population still offline despite network coverage, the priority now must be turning access into meaningful use. This requires decisive action to address affordability, digital skills, and investment barriers.”
Device affordability and digital skills remain major barriers
The GSMA identifies device affordability and limited digital skills among the factors restricting mobile internet adoption.
Malawi also faces broader structural challenges, including foreign exchange shortages and high energy costs, which can affect both consumers and telecommunications operators.
The combination means that expanding network coverage alone is unlikely to close the digital divide.
Smartphone adoption of 33% is particularly significant. Even where 4G infrastructure is available, users require compatible devices to take advantage of higher-speed mobile broadband services.
The GSMA therefore argues that Malawi’s next stage of digital transformation needs to concentrate on meaningful connectivity rather than infrastructure coverage alone.
This means addressing the wider ecosystem around mobile broadband, including devices, affordability, skills and the investment environment.
GSMA recommends extending 4G coverage to 99%
Network expansion nevertheless remains part of the proposed roadmap.
The GSMA recommends increasing Malawi’s 4G population coverage from 87% to 99%, including through the use of alternative connectivity technologies in remote areas where conventional mobile infrastructure may be more difficult or expensive to deploy.
Reaching the remaining population is likely to present different economics from earlier phases of network expansion because uncovered communities are often located in rural or geographically challenging areas with lower population densities.
Alternative infrastructure models could therefore become increasingly important as Malawi approaches near-universal population coverage.
The broader policy roadmap is aligned with national development initiatives including Malawi 2063, the government's 2025-2030 manifesto, the Digital Malawi Acceleration Project and the Inclusive Digital Transformation for Malawi framework.
Closing usage gap could add $633.6 million to economy
The GSMA argues that increasing digital adoption could produce substantial economic benefits.
Targeted reforms capable of narrowing the digital divide could generate MWK 1.1 trillion, equivalent to approximately $633.6 million, in additional economic value by 2030.
The report also estimates that the resulting expansion of the digital economy could support 490,000 jobs.
Increasing the number of mobile internet users is one component of that opportunity.
The roadmap proposes adding around 810,000 new mobile internet users to bring the total to five million.
According to the GSMA, achieving that target could generate a net positive fiscal impact of MWK 179 billion ($103.1 million), supported by higher digital adoption and improved tax compliance.
The economic case therefore extends beyond telecommunications revenues. Greater internet participation can increase access to digital financial services, online commerce, government platforms and other digitally delivered services while expanding the addressable market for local technology businesses.
Malawi highlights Africa’s shift from coverage to usage
Malawi’s experience illustrates a broader challenge emerging across African telecommunications markets.
Years of mobile infrastructure investment have brought 3G and 4G networks within reach of much larger portions of the population, but network availability is increasingly only one part of the connectivity equation.
When coverage reaches 87% while unique mobile internet penetration remains at 12.5%, the bottleneck increasingly moves from infrastructure availability towards adoption.
This changes the policy challenge.
Measures that encourage infrastructure investment remain important, particularly for the final percentage of difficult-to-reach communities. But governments, operators and development organisations also need to address the affordability of internet-capable devices, digital literacy and the economic barriers preventing covered populations from becoming active users.
Source: MEA Tech Watch Press Reporter
