Egyptian smartphone market leads as Africa's top growing market in Q1 2025: Canalys
Cairo – May 28, 2025: According to a report by Canalys, Egypt led North Africa's smartphone market in the first quarter of 2025, with shipments increasing by 34 percent compared to the same period last year. This strong performance was supported by measures such as IMEI whitelisting to address grey-market imports, enhanced macroeconomic conditions, and a renewed focus on boosting local production.
Meanwhile, the broader African smartphone market continued its upward trajectory, marking the eighth straight quarter of growth. Canalys, now part of Omdia, noted a 6 percent year-on-year increase in shipments across the continent, totaling 19.4 million units during Q1 2025.
Algeria followed with a solid 16 percent expansion, supported by government policies, advances in telecom infrastructure, and growing consumer adoption of mobile payment platforms like the recent launch of 'DZ Mob Pay.'
While demand for entry-level devices softened in some regions, Africa benefited from robust offline retail activity and vendor efforts to cover diverse market segments. Key policy initiatives, currency stabilization, and early product launches targeting value-conscious buyers helped sustain this momentum.
In Sub-Saharan Africa, South Africa led regional growth with a 14 percent increase, spurred by government measures such as removing a 9 percent luxury excise tax on smartphones under ZAR 2,500 (approximately US$137) and phasing out older 2G and 3G networks to expand 4G and 5G coverage.
Nigeria's market, however, contracted by 7 percent due to ongoing economic challenges, although its large, youthful, and tech-savvy population continues to offer long-term potential. Kenya saw a modest 1 percent increase, fueled by the steady uptake of flexible financing options.
Among smartphone brands, TRANSSION experienced a 5 percent decline after seven quarters of growth, as competitors adopted similar distribution models emphasizing localized credit and after-sales support.
Samsung, holding a 21 percent market share, performed well in South Africa and Egypt, with its A-series devices accounting for 60 percent of shipments. Xiaomi grew 32 percent, led by strong sales in Egypt and Nigeria, while OPPO and HONOR posted 17 percent and 283 percent growth, respectively, boosted by local assembly and strategic partnerships.
Despite positive trends, economic pressures and infrastructural challenges continue to limit broader growth. With 4G phones comprising 85 percent of shipments and mid-tier devices dominating 42 percent of the market, consumers remain cautious, and reliance on financing raises concerns about debt sustainability.
Looking ahead, Canalys projects a 3 percent growth rate for Africa's smartphone market in 2025, citing ongoing macroeconomic uncertainties and global trade tensions as key challenges. Nonetheless, urban youth with digital ambitions remain a vibrant market segment, even as limited disposable incomes and credit dependency temper overall demand.
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