Africa Creator Economy Market SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (undefined)

Africa Creator Economy Market Analysis

The Africa Creator Economy market size was valued at US$ 3.08 Billion in 2023 and is expected to reach US$ 17.84 Billion by 2030, grow at a compound annual growth rate (CAGR) of 28.5% from 2023 to 2030. The creator economy refers to the class of entrepreneurs, artists, influencers, bloggers, and other content creators who are leveraging online platforms to earn income through their creative skills and talents. The rapid growth of internet and smartphone penetration across Africa has enabled more people to unleash their creativity online as content creators across diverse fields such as media, arts, technology, education, and more. This new wave of digital entrepreneurs is driving significant economic value in Africa.

Key factors propelling the growth of the African creator economy include rising youth population, growth of social media, increasing digital payment adoption, and support from governments and platforms. By platform type, the video segment accounted for the largest share of over 41% in 2022. The ease of creating and distributing video content via platforms like YouTube, TikTok, and Instagram is making video the most popular format among African creators.

Africa Creator Economy Market Drivers:

• Rising Youth Population and Internet Penetration: Africa has the youngest population globally with over 60% of people under 25 years old. Rapid urbanization and rising disposable incomes are driving internet adoption across Africa. In 2022, internet penetration in Africa stood at around 43%, and is expected to reach 50% by 2025. The youth are spending more time online accessing social media, content platforms and other digital services. This presents a lucrative opportunity for youth to build careers as online content creators.
• According to a 2021 Anthropic report, Africa currently represents 17% of the world's internet users, and this percentage is projected to increase to 25% by 2030. The expanding accessibility of affordable smartphones and more affordable data plans is expected to further facilitate online connectivity for a larger population.

• Growth of Smartphones and Mobile Broadband: Smartphone adoption in Africa is rising rapidly, expected to reach 50% by 2025. Expansion of 3G and 4G networks has also increased access to high-speed mobile broadband. Affordable smartphones combined with mobile internet are empowering youth in Africa to create diverse types of content seamlessly from their phones. Mobile content creation and consumption is surging.
• According to an International Telecommunication Union, as of 2021 mobile broadband penetration in Africa stood at 38% with over 600 million subscriptions compared to just 8% in 2013. With further investments to expand networks and lower tariffs, it is estimated that broadband access across the region will double over the next five years.

Africa Creator Economy Market Opportunities:

• Developing Support Infrastructure: Significant opportunity exists in building infrastructure to nurture African creator ecosystems - funding platforms, legal support, digital media training programs, distribution networks, monetization solutions, co-creation hubs, and more. Government and private sector initiatives to develop creator support systems will unlock more potential.
• According to the 2022 UNESCO Policy Monitoring Platform, several African nations have recognized the cultural and creative industries as a priority sector in their national development plans. Countries like Kenya, South Africa and Nigeria have framed policies and released national strategies to develop world-class infrastructure for a vibrant creator ecosystem.

• Leveraging African Culture, Identity and Languages: There is a growing appetite for content that authentically represents contemporary African cultures, identities and experiences. Distinct local languages, dialects, music genres, art forms and narratives can attract global diaspora audiences. Platforms that encourage localization and cultural content can gain distinct competitive edge.
• According to a 2022 report by United Nations Conference on Trade and Development (UNCTAD), Nigerian Yoruba YouTubers and comedians dubbed 'Popsters' have amassed millions of views and subscribers.

Africa Creator Economy Market Restraints:

• Underdeveloped Digital Infrastructure: Large parts of Africa still lack adequate digital infrastructure. Low internet penetration beyond urban centers, slow broadband speeds, limited data centers, and poor digital connectivity hamper content creation and distribution. Significant investment is needed to strengthen digital infrastructure.
• Counterbalance: Governments can partner with private companies to improve digital infrastructure. This could involve investments in broadband connectivity, data centers, and other necessary infrastructure.

• Limitations of Banking and Payments Infrastructure: Low banking penetration and underdeveloped digital payments infrastructure pose monetization challenges. Creators often lack access to digital payment systems, earnings transparency, and payment reconciliation and remittance facilities. This gaps need addressing.
• Counterbalance: Mobile money services like M-Pesa in Kenya have revolutionized the way people transact in Africa. Such services can be further leveraged to facilitate payments for creators.