Africa’s Gaming Industry: Why South Africa is Taking Center Stage
Gaming is no longer seen as a child’s play. At today’s level, gaming is not all fun and games; it has translated into a competitive skill, providing part-time and full-time jobs for professionals. I would easily convince my mom as to why I want to be a gamer when a list all the benefits.
Over the past five years, there has been a considerable increase in the number of gamers in Africa. It is believed that the Covid-19 pandemic played a significant role in this rise, which had an impact on all other facets of the gaming industry. Even while the gaming ecosystem in Africa may not be as well-known as in other continents, new studios in nations like Egypt, Kenya, Nigeria, Uganda, Ghana and South Africa are lifting the bar for the creation of games throughout the continent.
For instance, South Africa’s population of young people with a gaming culture has helped the country build a rather robust industry, which has attracted a number of foreign investors. The nation currently has Africa’s largest eSports scene, with foreign sponsors backing regional tournaments and supporting local competitors. According to Games Industry Africa report, South Africa generated $290 million in consumer spending throughout 2021.
By comparison revenue in Nigeria was $185 million, followed by Ghana $42 million, Kenya $38 million, and Ethiopia $35 million. Although Nigeria was the second-most in consumer spending for 2021, the report says that only 32% of its gaming population paid for titles. In terms of its population, 23% are said to play games. By comparison, South Africa is performing better other African nations. The Ouut highlight various parameters putting the country ahead.
Gaming Infrastructures in South Africa
Since gaming now involves playing electronic games through high-speed internet connections, emerging economies will have to improve technology and internet access in order to meet demands. Specifically, South Africa is running well ahead of its African peers in the following infrastructures necessary for an improved gaming industry.
Decentralized NFT gaming: the future of gaming in Africa
Technological advancement in South Africa has been sparked by the advancement of mobile technology and the use cases that go along with it. The rise in the acceptance of gaming has been further facilitated by the increase in smartphone usage overall. South Africa has the highest smartphone adoption rate in Africa with 108.6 million cellular mobile connections by the beginning of 2022, representing 179.8% of the country’s population.
One of the key factors in the expansion of smartphones and the rise of competitive gaming in South Africa is 5G. South Africa launched 5G in the in 2020, and it currently has the most commercial 5G vendors in the region. According to reports, Johannesburg has the fastest median download speed with 65.54 Mbps nearly 35% faster than that of the next-fastest city in Africa, Cape Town at 48.27 Mbps.
Additionally, the launching of various gaming smartphones by several regional companies is increasing the market’s overall growth rate. For instance, MediaTek, a fabless semiconductor company, has been able to offer spectrum, including G90T, G85, G80, G70, G35, and G25 chips. These spectrums were aimed at the premium 4G gaming smartphone segment.
Others can get it Right Too
The African market is highly fragmented as the demand for online games is increasing unevenly across the region. However, setting up infrastructure for the gaming industry is not rocket science. It is as simple as creating an enabling market for smartphone penetration, make deliberate policies to grow the overall share of internet users and prioritizing tech advancement.
The expansion of the gaming sector will be greatly accelerated by the increase in internet usage overall and in internet penetration in African nations. A number of African nations have the resources needed to boost their gaming industries. For instance, despite having the most smartphone users in Africa, Nigeria’s gaming sector made 32% less revenue than South Africa’s.
Africa must make plans to gain from NFTs’ in-game currencies, as they continue to remove the myth that in-game value is somehow separate from the real-world economy. The gaming industry is today worth over $300 billion, which gives Africans 300 billion reasons to leverage on the growing global industry.