How Much is the African Gaming Market Really Worth?
The gaming industry is booming. Industry reports reveal that revenue from worldwide gaming reached $135 billion (₦48.7 trillion) in 2018. That number is 10.9% higher compared to 2017, and it speaks to how much the industry is thriving. All three major sectors, in fact, saw marked improvements: mobile revenue rose by 12.8% to $63.2 billion (₦22.8 trillion); PC, by 3.2% to $33.4 billion (₦12 trillion); and the console sector by 15.2% to $38.3 billion (₦14 trillion).
Many countries in Africa have also gotten into this gaming boom. The top 10 gaming markets in the continent contributed a little over $1 billion (₦360 billion) in revenue to the industry. Nigeria is 4th in the top 10, contributing approximately $122 million (₦44 billion). Egypt, South Africa, and Morocco are the biggest contributors, at $293 million (₦106 billion), $216 million (₦77.9 billion), and $129 million (₦47 billion), respectively. Algeria rounds out the five biggest gaming markets in Africa, with revenue of $107 million (₦39 billion). From 6th to 10th are Tunisia, which contributed $45 million in revenue (₦16 billion); Ethiopia, $26 million (₦9 billion); Ghana and Kenya, $23 million (₦8 billion); and Angola, $22 million (₦7 billion). These figures show how much the video game industry in Africa is expanding.
What then is driving this emergence? First is the increasing mobile penetration happening in the continent. Stay Connect digital strategy director Serge Thiam points out that in 2014 Africa had only 23 million gamers. Four years later that number has grown to 500 million, mainly due to “the rapid penetration of smartphones.” And this mobile gaming market is still growing — by as much as 8% annually. Mobile penetration is likely to increase even more moving forward thanks to economic expansion across Africa.
Second is the rising popularity of casino games on digital platforms in Africa. Mondaq report that Nigeria opened their first online casino in 2013 to appeal to online players. While the online casino has since shut down, it did show how there was a huge demand for this type of online gaming. This is in part due to the accessibility of online casinos. Today’s players are able to easily play games like poker that were once restricted to brick and motor casinos. There are also many online guides that are aimed at attracting new players from across the world. The detailed tutorials listed on partypoker help new players quickly get up to speed with games such as Texas Hold’em and Omaha — two of the more popular online variants. This means that even though many countries in Africa have a restricted casino industry, players still have access to the online versions of popular casino games. In turn, these online casino games have helped grow the continent’s overall gaming industry.
Finally there is an emerging class of African video game developers. Startups like Weza Interactive and Ludique Works are creating games specifically for and about Africa. “”We wanted to focus on the African theme,” explains Weza chief executive George Ohere, “because we think it’s time for Africa.” Indeed, it is time for Africa. It already has a video game industry valued at over ₦48.7 trillion. With the gaming sector predicted to continue its unprecedented rise, African gaming could soon become a dominant force in the industry.