The gaming industry in sub-Saharan Africa is expected to see significant growth until 2024, when it will generate more than $1 billion in revenue, according to recent data. This information, compiled by Dutch research firm Newzoo for African startup Carry1st, indicates that the gaming market in Africa is thriving despite the economic challenges the region is facing.
What the gaming market in Africa has achieved
While economic growth in sub-Saharan Africa has slowed due to inflation, difficult financial conditions, and high debt levels, the gaming industry is generating significant revenues. World Bank data shows that economic growth in the region is expected to fall from 4.1% in 2021 to 3.6% in 2022 and is forecast to fall even further to 3.1% in 2023.
However, despite these economic challenges, the gaming market in Africa is showing growth. According to Newzoo, video game sales in the region will reach $862.8 million in 2022, an 8.7% increase from the previous year. This shows the significant interest in gaming in Africa and the potential for further growth in the sector.
Experts note that the gambling industry is also growing. Many casinos are not only targeting Canada, Europe, and other countries but are also canvassing users from Africa. According to www.topcadcasinos.net, many casinos are giving new customers free money to start playing, thus attracting them to play.
Despite the decline in video game activity worldwide due to COVID-19 and the rising cost of living, the African gaming market continues to grow. Konvoy, a company specializing in investments in the gaming industry, predicts significant growth for this market in Africa in the coming years. Internet and the proliferation of smartphones are pushing this growth, especially among the region’s young population. The GSMA organization predicts that 87% of the population in Sub-Saharan Africa will own a smartphone by 2030, up from 51% in 2022. This data shows the promise and potential of the African gaming market.
Smartphone usage has played a key role in the growth of gaming in Africa, as Newzoo’s data shows. Mobile games generated revenue of $778.6 million in 2022, accounting for about 90% of total game sales. The figures by region are as follows:
- Leading the way in terms of annual gaming revenue is Nigeria, which generated $249 million.
- It is followed by South Africa, which generated $236 million in revenue. Previously, South Africa was the largest market for video games in the entire continent.
- Kenya ($46 million), Ethiopia ($42 million), and Ghana ($34 million) also saw significant revenue.
- Especially impressive is the growth of mobile games in Ethiopia, which grew 13% year-on-year.
- On the other hand, the gaming market in Uganda is growing at a slightly slower rate of just 6%.
Thus, the gaming industry is booming in Sub-Saharan Africa, presenting significant opportunities for investors and game developers. This constantly evolving and expanding market could be an important factor for economic development and diversity in the region.
