The Inflection Point, a report from Endeavor Nigeria, shines a light on a growing digital opportunity on the African continent. Following the pandemic, the continent is increasing its digitalization, focusing on the potential of technology.
According to this report, from $115 billion in 2020, the digital economy in Africa is expected to grow to $712 billion by 2050. The forecasting is done based on the accelerated use of digital services, consumer spending growth, and GDP rates on the African Continent.
With the visible migrations from rural to urban areas, it is expected that individuals that live in cities will turn to embrace new technologies and better connectivity. The African youth population in the cities is showing its growing passion for online gaming and sports betting. This leads to the demand for expansion of this niche in the African market.
Developing African Markets
According to the African Tech Startups Funding Report, 2021 was a smashing year for startups raising more funding than ever. A total of US$2,148,517,500 were secured in 2021 by 564 startups.
Referred to as “The Big Four”, Nigeria, Egypt, South Africa, and Kenya secured a greater portion of the total funding. Nigeria is the leader of the four growing markets, with 161 startups raising over $900 million in 2021, followed by Egypt and Kenya.
iGaming is among the many rising industries that have been breaking records in the past years. Appearing in the 1990s, this industry is marking a constant ascent. Digital entertainment received a lot of attention during the pandemic period.
Like other operators around the world, the African iGaming market is also facing challenges. Operators are searching for unique niches and securing their spot among the new competition that is constantly emerging. Africa’s online casino gaming and sports betting may be in the infant phase, but it is a profitable venture.
The Trending Interactive Gaming
Markets within the African iGaming industry show room for significant growth. This is especially true for Congo, where Esport companies continue with big iGaming investment cycles and developing partnerships. Carry1st was among the first to invest in a South African professional gaming portal.
The comprehensive B2B2C business model contributed to the economic development of the African iGaming market. The business model includes data-driven customer relationship management for gaming platforms.
These IGaming companies are taking the initiative to explore new opportunities in the market. The interactive gaming sector in the Republic of Congo is showing true potential for expansion, but success is also possible in larger and more competitive iGaming markets.
It’s important to understand that the success rate of online gaming is due to the ability to reach the right audience. Hence the popularity of online gaming is possible even in smaller African countries like Congo, where the population is significantly smaller than that of South Africa.
The Potential of Africa’s iGaming Industry
It wasn’t long ago that Africa had a limited number of iGaming operators that didn’t offer much to the population. The market was slow and didn’t pressure for investment in new innovative technology.
However, the world changed, and the competition became fierce in the blink of an eye. The African continent has attested to huge advancements in the iGaming market development potential in the past years. The interactive mobile market and the young African population have increased the demand for casino and sports gaming, especially in 2021.
Change and growth are inevitable in a highly competitive market. The young generation has increased the standards significantly, and iGaming operators in Africa must quickly adjust to any new and innovative technology.
While South Africa is not sharing the success rate of the other members, the "big four" is experiencing a fast-growing iGaming and tech sector along with Congo, Ghana, and Uganda. The high population size and relaxed, interactive gaming policies are inviting investors from Europe, North America, and China to invest.
#FeaturedBy: Isaac Bampende