The Pieces Are in Place for the African Gaming Industry

The African gaming industry is still in its infancy, with many not aware it even exists. However, that is rapidly starting to change as the sector overcomes barriers to entry, such as lack of connectivity, investment, and infrastructure, and it is set to burst onto the global gaming scene. As a result, not only have the number of gamers been rising rapidly but so have Africa-based gaming companies.

This is being driven by several factors and all point to an industry set to explode in the coming few years.

What has changed?

The African continent is the only global region where the youth demographic is growing. At present, the are over 200 million Africans under 35. By 2050, it's predicted that those under the age of 24 will rise 50%.

This expansion of the game-loving younger generation is happening as 4G networks rapidly proliferate across the continent, and smartphones are becoming cheaper and more common. GSMA reports that at the end of 2020, 495 million people in Sub-Saharan Africa subscribed to mobile services, rising to a predicted 615 million, 50% of the population, by 2025.

At the start of 2020, a report by GameAnalytics found that the number of mobiles gamers rose from 1.2 billion to 1.75 billion (a 46% increase), in just three months, partly due to the pandemic. According to Newzoo, by the end of 2021, there will be 2.9 billion players generating US$175.8 billion. As Africa gets more connected and mobile technology continues to spread, its share of this vast market will accelerate.

Until recently, the continent's gaming industry had been slow to meet the demand of the rising numbers of local gamers. But that is also starting to change. There are several game development hubs already established, and these are rapidly expanding. A recent report predicted that the African gaming industry would experience a CAGR of 12% between 2021 and 2026.

Currently, the region's top development hubs are countries like South Africa, Kenya, Algeria, Uganda, and Nigeria. In South Africa, for example, industry revenue is expected to rise from R3 billion in 2017 to R6.2 billion next year. A BBC article in 2019 reported that Kenya's video games industry was valued at over US$50 million and was expected to double by 2021. These markets are growing fast.

Game development is spreading to new regions

As demand grows, more countries are seeing game companies spring up. A great example of how new companies develop and appeal to the young African market is Qene Games Inc., the first gaming studio in Ethiopia. The founder and CEO of the company, Dawit Abraham Weldeselassie, had always been a keen gamer, coder and always wanted to play something that reflected his background.

"Growing up in Ethiopia, the only games available were of western origin and not African," Dawit Abraham explains. "I am passionate about the culture and history of Africa and wanted to create games that reflect this. By the time I graduated in 2016, I had already built the prototype of my first game called Kukulu."

Kukulu epitomizes what a successful African mobile game can be. It is a 3D endless runner game similar to others in the genre like Subway Surfer. Gamers play the role of a chicken called Kukulu, who escapes from being slaughtered by her captive farmer and goes on the run.

Dawit says, "What is so special and different about Kukulu is that it is set in Ethiopia landscapes. The chicken runs through villages, suburbs, and countryside that are uniquely African. The music, characters, and scenery all reflect its origins."

The game has proved to be successful, winning the AppsAfrica award for best entertainment and media app in 2018. The following year Qene Games Inc. was incorporated and began working on a new mobile game called Gebeta. In 2020, they signed a multi-year global partnership with Carry1st, a South African gaming company that is also growing rapidly. Later that year, Gebeta won an Apps Africa award for Best App of the year.

"A lot has happened in the last couple of years," Dawit Abraham says enthusiastically. "There is so much potential in the African gaming market right now, and it has all happened in such a short space of time. This is down to the youthful demographic, the rapid spread of 4G and smartphone technology, and growing investment."

"As we are the first and only game studio in Ethiopia, we have the huge advantage of untapped talent. The country has a population of 110 million, and 60% are young. So we're able to leverage this resource as we grow. Our main competition is other developers, but we have the advantage that our production costs are considerably lower."

The success achieved by Qene Games Inc. has been noticed. Earlier this year, the company successfully closed a pre-seed round of $200,000. Dawit Abraham says, "The funding, along with the success of our first two games, will allow us to become a game publisher. We already have a new game in the works, called 'Feta', which is a puzzle slider with Ethiopian culture, traditions, and food embedded into the gameplay."

"The last couple of years have been eventful, and I think the next few will be even more so," he adds. "Not just for us, but the entire industry."

The African gaming industry is still nascent, but the incredibly rapid rise and emerging development hotspots promise a lot of potential. All the pieces are in place, and there is a real sense that the sector is about to explode.