Africa’s online future is on the move

Africa’s digital economy’s impressive growth in recent years has primarily been carried by the mobile sector. According to a recent United Nations Conference on Trade and Development (UNCTAD), the digital market can further increase its current contribution to the African economy by $180 billion within just a few years. There is tremendous potential that is already being realized, with several clear driving factors that deserve to be explored in detail, as they will remain key for the future of Africa’s wider economy.

Mobile Game Downloads on the Upswing 

Perhaps one of the biggest factors within the mobile sector is the gaming industry. African citizens have long had the reputation of being particularly enamored with playing games, in any format. Gaming cafes are still part of the furniture in many cities and towns, but now that many people have access to advanced games in the palm of their hands, the industry has increased exponentially. 

What is particularly impressive is the growth we’ve seen in local software development companies, with companies like Usiku Games in Kenya and Leti Arts in Ghana examples of the high-end titles being released on the continent. The growth opportunities offered by a wider user base has led to not only the creation of African software companies, but many talented developers to be trained in the latest technologies. 

In addition to traditional app-based games like Candy Crush Saga or Call of Duty, African consumers are also particularly interested in iGaming. In South Africa, for instance, the leader in the gaming sphere, there are dozens of fully-licensed mobile casinos. These now offer a near-identical (and arguably superior) experience to what you would get on a full browser or even from a land-based operator.

Banking on Your Smartphone 

Many consumers no longer use traditional banks or even access their accounts on a traditional desktop-based browser. For many Africans, this was never even an option in the first place. 

In recent years, however, mobile financial services has been a major contributing factor to including many African citizens in the digital economy. Consumers do not need access to a bank (often only possible in big cities), nor do they need access to the internet on anything but their mobile phones. 

Fintech companies have also popped up all over the continent, including the popular M-Pesa in Kenya, which at the time of launch was a truly pioneering service. The service is essentially banking for the unbanked, allowing consumers to securely send and receive money, withdraw cash at multiple agent points and ATMs, and pay their bills (e.g. utility, taxes, and school fees). 

Prior to these services becoming available, many people simply used cash. In a global economy that is now primarily digital, it presented a real issue for developing economies. With smartphones now cheaper than ever, and mobile connections widely available, the gap will become even smaller.

Cheaper Smartphones + Subscriptions to Mobile Phone Services 

The first-ever iPhone was launched in 2007, but for many African consumers, it was simply an unaffordable luxury. This continues to be the case for many, but the situation is far more accessible than ever. In 2020, for example, Google launched a smartphone for $30; still a sizable investment for many, but a true opportunity for others to join the digital economy at an affordable price point.

In addition to access to a smartphone, you also need an internet connection to join the digital economy. In 2019, there were 272 million mobile internet users in Sub-Saharan Africa, for example, representing a penetration rate of 26%. In 2025, this number is expected to grow by at least 200 million, with the penetration rising alongside to an impressive 39%. 

In developed economies, such as the United Kingdom, the penetration rate already stands at 98% of all adults for smartphone ownership. For internet access, it is 90%+. Clearly, in Africa, there is a long way to go, but the figures are certainly encouraging.

What is Hampering Further Growth?

While Africa’s growth figures have certainly been significant, there is always more room for further expansion. Considering the African continent, there are several factors that are slowing the process down: 

Africa still has many unbanked citizens. 

Based on 2023 figures, there are approximately 350 million people that only transact using cash, without any access to a bank account.

There is a clear potential for economic expansion by expanding the banking sector, particularly with mobile apps. The last five years has already seen an expansion of over 250 million, but there is still a long way to go.  

Lack of ID, affects mobile economic growth. 

In developed countries, most individuals have a digital ID. This is usually based on a combination of factors, often including a bank card, a landline number, both an email and physical address, all of which are not always available to African citizens.  

Without the ability to prove their identity online, they are frozen out of the sector. Governments are aware of this problem and are taking active steps to resolve it. In Kenya, for example, each citizen can obtain a unique service number, giving them access to a range of services. In Nigeria, there is the chip-based ID card that holds personal details.

In the grand scheme of things, however, the picture looks very bright indeed. Growth is reaching record figures year on year, African countries are still expanding when it comes to smartphone penetration and reliable 5G networks, so despite the aforementioned stumbling blocks, the sector should still grow significantly in the coming decade.

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