The global gaming world has undergone exponential growth over the last decade, with new developments placing the industry at the forefront of technology, design, and innovation. Across Africa, as with the rest of the planet, gaming has transformed from a niche market into one with significant economic benefits.
With 60% of the current population currently under the age of 25, Africa is one of the world's youngest continents, so it offers a huge potential market for gaming activities. With the advent of a 5G rollout on the horizon throughout the continent, what's in store for two of gaming's most current sectors, iGaming and eSports?
Let's take a look.
eSports in Africa
The widespread rise of digitization, in conjunction with major advancements in the African gaming industry, is expected to fuel the growth of eSports across the country during the next 10 years. According to Transparency Market Research, the total global market for eSports is expected to grow by a CAGR of 23.2% over the following decade, with a predicted total value of $11.16 billion.
One of the biggest barriers to the ongoing development of eSports in the continent so far has been disappointing internet connectivity. But significant changes, such as the rollout of 5G, as well as a push from telecoms companies themselves towards better data connections, will open up a world of possibilities as far as growth is concerned.
Telkom is currently engaged in a series of promotional activities with businesses across South Africa to support and encourage the growth of local eSports communities. According to the telecoms giant, the time is "ripe for South African organizations to start investing in eSports to boost their brands".
The data is there to back this up too. Throughout the world, eSports is emerging as a popular source of entertainment with consumers; a recent tournament in Singapore, for example, pulled in 5.41 million peak viewers.
While it may take some time for African viewership to build up to that level, there's no shortage of events and tournaments on the horizon. Lenovo has recently teamed up with Power League Gaming to launch the Legion Africa Cup, a tournament "showcasing the best CS:GO teams" in Kenya, Nigeria, Tunisia, Morocco, Egypt and South Africa.
Riot Games, the company behind the massively popular League of Legends, has opened its Teamfight Tactics Set Six roadmap to African players, along with gamers from Europe and the Middle East. Following qualifiers that include a Superbrawl tournament, a total of four players from across the EMEA region will get the opportunity to compete at Set Six Worlds.
Africa's iGaming Scene
Alongside the growth of eSports across Africa over the next decade, we can expect to see similar developments reflected in the iGaming segment.
For those unfamiliar with the term, iGaming refers to online casinos, poker and sports betting. The industry is a global business ecosystem, supporting everything from multinational platforms with vast content libraries such as PokerStars Casino, through to independent developers and powerhouse commissions that govern gaming legislation.
Several major iGaming investors are eyeing Africa as a lucrative region, particularly countries like Nigeria, Kenya and South Africa. The economic growth Africa has sustained in recent years, coupled with the acceleration of affordable and efficient data connections, is promoting local governments to regulate the sector in order to benefit from new, substantial revenue streams.
There's a huge market for iGaming activities on the consumer side too. Many Africans are passionate about sports betting, for example, and there's also an increasing appetite for online casino gaming and poker experiences among Africa's youthful demographic.
Unlike the American, European and Asian iGaming markets, however, Africa's market is fragmented at present. Some countries, such as Tanzania, have pioneered the development of iGaming regulations, but several others are still lagging behind with an unregulated market. Although this has opened up markets to foreign iGaming operators, it's not exactly conducive to the development of African companies.
That being said, there is plenty of opportunity for comprehensive iGaming legalization and regulation across much of Africa. It's simply a case of local governments making it a priority, as in the case already in Kenya and Nigeria.
