A report by Google and the International Finance Corporation (IFC) has projected that Africa’s internet economy has the potential to reach $180 billion by 2025.
According to the report, the continent’s internet economy may further grow to $712 billion by 2050.
The report estimates that there are 690,000 professional developers in Africa, with 85,000 being Nigerians.
The report said that digital startups in Africa are driving innovation in fast-growing sectors including fintech, health tech, media and entertainment, e-commerce, e-mobility, and e-logistics, contributing to Africa’s growing internet gross domestic product (iGDP).
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Findings from the report showed that venture capital funding for startups has increased year-on-year for the past five years, with a record $2.02 billion in equity funding raised in 2019, according to Partech Ventures Africa.
The report noted that the African Continental Free Trade Area (AfCTA) enacted in 2019 will play a part in creating a free trade zone in the continent.
“The AfCFTA aims to reduce tariffs on 90% of all goods and facilitate free movement of goods, services, capital, and people, ” the report read.
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“It will enable Africa’s regional economic communities to become more integrated and easier to access, including the ability for startups to scale across Africa seamlessly.”
Nitin Gajria, director of Google Africa said: “Google and IFC have created this report to highlight the role the digital startup sector is playing and other factors driving the continent’s growth, in order to showcase and support the opportunities the continent presents.”
On her part, Stephanie von Friedeburg, interim managing director, executive vice president, and chief operating officer of IFC, said: “The digital economy can and should change the course of Africa’s history. This is an opportune moment to tap into the power of the continent’s tech startups for much-needed solutions to increase access to education, healthcare, and finance, and ensure a more resilient recovery, making Africa a world leader in digital innovation and beyond.”
The report recommended that investment in digital skills will also need to increase in order to help drive technology usage and continue to grow the continent’s talent pool.
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