Africa’s video game market is experiencing significant growth. According to exclusive data shared with CNBC, the gaming industry in sub-Saharan Africa is projected to generate over $1 billion in revenue for the first time by 2024. This suggests a thriving market for gaming in Africa, despite the region’s economic challenges such as inflation, financial conditions, and high net debt.
In contrast to the overall contraction in the global video game market, Africa’s gaming industry has been performing well. In 2022, games sold in the region generated $862.8 million in revenue, marking an 8.7% year-over-year increase, according to Newzoo’s data. This growth is notable considering the impact of the Covid lockdowns and the rising cost of living, leading consumers to tighten their budgets.
Cordel Robbin-Coker, the CEO of Carry1st, a gaming startup based in Cape Town, highlights the underlying secular growth in the sub-Saharan African games market. Although the initial boost was driven by the Covid pandemic, Robbin-Coker believes there is sustained growth even as the pandemic subsides and other markets decline.
The rapid pace of internet adoption and the increasing availability of smartphones have contributed to Africa’s gaming prospects. The region has the fastest-growing population globally, with over 90% coming online for the first time through mobile phones. This has created a strong demand for gaming content.
Venture capital firm Konvoy projects that Africa’s gaming industry will grow by 15.7% in 2023 and 13.6% in the following year, surpassing previous growth projections. The long-term trends of population growth, internet penetration, and smartphone adoption indicate incredible potential for gaming on the continent.
Africa’s gaming growth is closely tied to the affordability of smartphones and the rise of digital-native users. Falling smartphone prices, coupled with a younger population that readily embraces digital technology, have contributed to the industry’s success. GSMA predicts that by 2030, 87% of the population in sub-Saharan Africa will own a smartphone, a significant increase from 51% in 2022.
While the global gaming industry is expected to return to growth in 2023, Africa has outpaced the global market. Mobile gaming has been a major driver, accounting for 90% of total game sales and generating $778.6 million in revenue in 2022. Nigeria leads in annual gaming revenue, followed by South Africa. Other top-performing countries include Kenya, Ethiopia, and Ghana.
With Ethiopia experiencing the highest year-over-year growth at 13%, and Uganda with the slowest at 6%, all ten countries in the top rankings have seen sales growth. Nigeria and South Africa combined contribute twice the revenue of the other eight top countries.
In conclusion, Africa’s video game market is thriving, with sustained growth expected in the coming years. The region’s favorable demographics, increasing smartphone adoption, and strong appetite for gaming content create a promising outlook for the industry in sub-Saharan Africa.
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