April 17, 2024
Africa Creator Economy Market

The Africa Creator Economy Market Is Expected To Be Flourished By Growth In Mobile And Internet Penetration

The Africa creator economy market involves various online platforms that enable content creators, freelancers, and independent professionals to earn income online. Content creators in Africa have been leveraging various digital platforms to publish and monetize their work. This includes platforms for streaming music, publishing articles, developing mobile applications, selling crafts and designs, shooting and editing videos, and more. The market comprises various independent professionals utilizing their talents across a wide range of skills such as designing, programming, writing, performing, teaching, and more.

The global Africa creator economy Market was valued at US$ 3.08 billion in 2024 and is expected to exhibit a CAGR of 28% over the forecast period 2023 to 2030, as highlighted in a new report published by CoherentMI.

Market Dynamics:

Rising penetration of affordable smartphones and high-speed internet has been a major driver for the growth of Africa’s creator economy market. According to reports, smartphone penetration in Africa has doubled over the past five years, reaching 44% by 2021. Meanwhile, total internet users on the continent exceeded 500 million in 2020. This growth in connectivity has empowered millions of Africans to access new online opportunities of earning a livelihood through their skills and talents.

Another key factor propelling the market growth has been the increase in platforms dedicated to supporting and connecting African creators. Homegrown platforms like Anthropic, Brass, and AndreBlaze have provided infrastructure for freelancing, gaming, e-learning, and more. Meanwhile, international players like Twitch, Twitter, YouTube and others have also ramped up their Africa strategies to better serve the continent’s rising creator class. This has helped unlock a new realm of possibilities for entrepreneurs and independent professionals in Africa.

Segment Analysis:

The Africa creator economy market can be segmented based on offering (platforms, services) and end users (individuals, businesses). The platforms sub-segment dominates the market with a share of around 65%. Popular platform players like Andela, SafeBoda, and Gokada have enabled new business models for freelancers and creators in Africa to build their own businesses and monetize their skills online. The platforms offer tools and resources to help creators showcase their work and connect with potential customers online, driving the growth of this sub-segment.

Africa Creator Economy Market Segmentation:

  • By Platform Type:
    • Video
    • Audio
    • Writing & Publishing
    • Gaming
    • Digital Products
    • Learning & Education
    • Others
  • By Business Model
    • Freelancing
    • Subscriptions
    • Advertising
    • Ecommerce
    • Crowdfunding
    • Events & Experiences
    • Others

PEST Analysis:

Political: The governments in many African countries are taking initiatives to promote innovation and the digital economy. Favorable regulations around areas like payments, taxation are boosting the creator economy. However, limited infrastructure in some nations remains a challenge.

Economic: The growing youth population, rising internet adoption, and increasing urbanization are driving the economic growth in Africa. As disposable incomes rise, demand for on-demand services and digital content is surging. However, macroeconomic uncertainties and currency volatility impacts the spending power.

Social: Young population is adopting new technologies at a rapid pace. Social media and digital content are hugely popular. People are willing to pay for online courses, subscriptions and on-demand services. Women entrepreneurs are also increasingly leveraging digital platforms. However, lack of awareness limits the market potential.

Technological: African countries are witnessing massive investments in areas like mobile money, fintech and broadband connectivity boosting entrepreneurship. Technologies like AI, blockchains are assisting creators. Platforms provide online tools for designing, marketing etc. However, infrastructure gaps remain an impediment in rural areas.

Key Takeaways :

The Africa Creator Economy Market Size is estimated to grow rapidly driven by the continent’s young population, growing internet penetration and digital innovations. The Africa Creator Economy Market is estimated to be valued at US$ 3.08 Billion in 2023 and is expected to exhibit a CAGR of 28% over the forecast period 2023 to 2030.

Nigeria and South Africa dominate the market currently comprising over 50% share due to strong tech ecosystems and growing internet user base in these countries. Platform players like Andela have enabled thousands of African software developers and programmers to get remote jobs while others like SafeBoda and Gokada have created new ride-hailing business models in key cities.

Key Players operating in the Africa creator economy are SafeBoda, Gokada, MaxAB, Twiga Foods, Sendy, Lori Systems, Kobo360, Jumia, Konga, Cellulant, Interswitch, Flutterwave, Paystack, Paga, Wave. Andela is one of the largest players and has trained thousands of developers from Africa, helping address the tech talent gap. Payments players like Flutterwave and Interswave are facilitating financial access for creators. eCommerce players like Jumia and Konga are enabling a marketplace for artists, designers and digital content creators.

*Note:
1. Source: CoherentMI, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it