The sub-Saharan African gaming industry is on the verge of a significant milestone, poised to generate over $1 billion in revenue for the first time in 2024. This revelation comes from research firm Newzoo, which shared exclusive data with CNBC. Despite a contraction in the global games market, the African gaming industry has experienced robust growth, reflecting a burgeoning market in the region.
A Contradictory Expansion
In 2022, games sold in sub-Saharan Africa generated $862.8 million in revenue, representing an impressive 8.7% year-over-year increase, according to Newzoo’s data. This expansion is in stark contrast to the 4.3% decline observed in the global games market, which reached $182.9 billion in the same period. The African gaming industry has emerged as a standout performer, defying the overall contraction in the market.
Factors Driving Growth
The data, compiled by Dutch research firm Newzoo for African gaming startup Carry1st, sheds light on the factors contributing to the buoyant gaming market in Africa. The region’s sluggish economic growth, characterized by persistent inflation, challenging financial conditions, and high net debt, creates an environment where the gaming industry thrives. Amid economic challenges, gaming provides an affordable form of entertainment for individuals across sub-Saharan Africa.
The Rise of a New Audience
One of the most significant findings from the data is the underlying secular growth in the games market in sub-Saharan Africa, as noted by Cordel Robbin-Coker, CEO of Carry1st. The region boasts the fastest-growing population in the world, with a considerable number of individuals gaining internet access for the first time, primarily through mobile phones. This digital revolution has created a strong appetite for content, including video games, and is a key driver behind the growth of the gaming industry in the region.
Projections and Potential
Recognizing the immense potential of the African gaming market, venture capital firm Konvoy, which specializes in gaming-related investments, projects further growth. It anticipates a 15.7% expansion in the industry in 2023, followed by a 13.6% increase the following year. These projections surpass previous estimations, indicating an even brighter future for the sub-Saharan African gaming industry.
Conclusion
In conclusion, the sub-Saharan African gaming industry is defying expectations, with robust growth anticipated to surpass $1 billion in revenue in 2024. Despite the region’s economic challenges, the gaming market has thrived, driven by a growing population, increased internet access via mobile phones, and a strong appetite for entertainment content. As the industry continues to expand, it presents exciting opportunities for both local and international gaming companies.
