By 2025, the Africa’s Internet economy has the potential to contribute $180 billion to their nation’s economy, helping improve productivity in areas ranging from agriculture, health care, and financial services to education and supply chains. This analysis is an outcome of Google Research Report, published here.
Since 2000, the number of people with access to the Internet has grown to over 520 million, or almost 40% of the population. Sixty percent of Africa’s Internet population accesses the Internet through mobile phones, and an increase of 10% in mobile Internet penetration can have a direct impact to the GDP per capita by 2.5%, compared to 2% globally.
Over the next fve years, COVID-19 is expected to delay economic growth both in Africa as well as the rest of the world. However, the resilience of the Internet economy, coupled with private consumption, strong developer talent, public and private investment, investments in digital infrastructure, and new government policies and regulations will continue to drive this growth in Africa.
Africa’s Internet Economy: A variety of sectors are leading the way in Africa’s digital transformation
Companies in the Internet economy have generally outperormed other sectors of the economy.
Media and enterainment
Starups building solutions to suppor the population that is fnancially excluded but gaining access to mobile technology. Fintech starups remain the top destination for funding, receiving 54% of all starup investment in 2019.
e-Commerce Growth driven by improvement payments landscape, rise in mobile tech, and mobile money tech adoption. In 2019, $134 million in funding was atributed to e-Commerce, indicating both an increase in funding and number of deals.
Africa’s internet economy is forecast to balloon 56% to $180 billion in gross merchandise value by 2025 as paperless retail transactions on the continent continue to rise in the post-pandemic era.
Blockchain-based mobile network operator, World Mobile figures show Nigeria, Kenya, South Africa and Egypt will fuel the continent’s mobile commerce boom.
According to World Mobile chief executive officer Micky Watkins, professional investors see the opportunities in the sector and expect the mobile phone to drive growth.
Africa internet consumption is truly gigantic, but will it realise or accomplish its full potential by 2025. Well, it is possible if the growth curve over the years is put as a benchmark.