A new report, known as the e-Conomy Africa 2020 Report, released yesterday by Google and the International Finance Corporation (IFC), estimates that Africa’s internet economy has the potential to reach 5.2 percent of the continent’s gross by 2025. domestic product (GDP). , which contributed nearly $ 180 billion to its economy.
The proposed potential contribution could reach $ 712 billion by 2050, the report added.
According to the report, which was launched during a virtual conference in African countries, including Nigeria, it is a combination of increased access to faster and better quality internet connections, a rapidly growing urban population, a growing technological talent pool , vibrant start-up ecosystem, and Africa’s commitment to creating the world’s largest single market among the African continental free trade area. ‘
There are currently 700,000 developers in Africa, and venture capital funding for startups has increased year-on-year over the past five years with a record $ 2.02 billion in equity funding raised in 2019, according to Partech Ventures Africa.
The interim managing director, executive vice president and chief operating officer of IFC, Stephanie von Friedeburg, analyzed the report and said: “The digital economy can and must change the course of Africa’s history. This is a fitting moment for the power of the continent. technology launches for much-needed solutions to increase access to education, healthcare and finance, and to ensure a more resilient recovery, making Africa a world leader in digital innovation and beyond. ‘
Digital startups in Africa drive innovation in fast-growing sectors, including Fintech, Healthtech, media and entertainment, e-commerce, e-mobility and e-logistics, contributing to Africa’s growing Internet Gross Domestic Product (iGDP), defined as the internet’s contribution to GDP, he added.
Google Africa Director Nitin Gajria said: “Google and IFC have compiled this report to highlight the role that the digital start-up sector is playing and other factors to promote the growth of the continent to showcase the opportunities that the continent offers. and to support. “
An analysis in the report conducted by Accenture found that the continent’s iGDP could contribute about $ 115 billion in 2020 to GDP of $ 2.554 billion (4.5 percent of total GDP). This is higher than $ 99.7 billion (3.9 percent of total GDP) in 2019, with the potential to grow as the mainland economies develop.
Investment in infrastructure, digital services consumption, public and private investment and new government policies and regulations will play a key role in supporting Africa’s digital growth. The report notes that investment in digital skills will also need to increase to help promote technological use and grow the continent’s talent potential, ‘he said.
The chairman, Global Alliance for Affordable Internet, and the former Minister of Communications Technology, dr. Omobola Johnson, who was part of the panel to discuss the projected $ 180 billion growth in Africa’s internet economy by 2025, explained that African governments need to invest in micro and small. businesses as well as in infrastructure to achieve the projected growth across the African continent.