The telecommunication sector in Africa is expected to develop faster than any other region over the next three to five years despite the current economic downturn, according to a study by financial services firm Ernst & Young.

The study said there is ample headroom for expansion created by vast disparities and low penetration rates.

“Relative market maturity and limited exposure to global markets should see Africa telecommunications continue on its current growth path,” said Vincent La Bachelerie, global telecoms leader for Ernst & Young.

The study, ‘Africa Connected: A telecommunication growth story’ says increased expansion in the sector will help to reduce the digital divide between urban and rural areas.

Increased access to mobile phones would also promote growth of small scale businesses dealing in related services such as sale of airtime or phone accessories.

Previous studies by the Global Mobile Association have estimated that a 10% increase in telephone penetration results in a 1.2% increase in GDP in emerging markets.