(3 minutes read)
· In five years time, Africa’s Internet economy could reach 5.2% of the continent’s GDP, contributing nearly US$ 180-billion (R2.8-trillion), according to a joint research study undertaken by Google and the International Finance Corp (IFC)
· A combination of factors can help drive the digital economy in Africa, consisting of 54 –countries. Increased access to faster and better quality Internet connectivity, a rapidly expanding urban population, a growing tech talent pool, a vibrant start-up ecosystem and Africa’s commitment to create the world’s largest single market under the African Continental Free Trade Area are some of them
· The size of the Internet economy as on 2020 is estimated at US$115-billion as against the combined GDP of the continent is pegged at to US $2.55-trillion GDP
In five years time, Africa’s Internet economy could reach 5.2% of the continent’s GDP, contributing nearly US$ 180-billion (R2.8-trillion), according to a joint research study undertaken by Google and the International Finance Corp (IFC). In absolute terms this could work out to US$712-billion by 2050. The study was undertaken by Accenture on behalf of these two organizations.
A combination of factors can help drive the digital economy in Africa, consisting of 54 –countries. Increased access to faster and better quality Internet connectivity, a rapidly expanding urban population, a growing tech talent pool, a vibrant start-up ecosystem and Africa’s commitment to create the world’s largest single market under the African Continental Free Trade Area are some of them.
Africa already has an expanding digital space. Having 700 000 developers and venture capital funding for start-ups with a record US$2.02 billion in equity funding as of 2019, the continent can boast off an emerging ecosystem to nurture a strong digital revolution.
The size of the Internet economy as of 2020 is estimated at US$115-billion as against the combined GDP of the continent is pegged at to US $2.55-trillion GDP. This forms 4.5% of the total GDP, which is up from US$99.7 billion (3.9%) in 2019.
The study also suggests higher Investments in infrastructure, consumption of digital services, public and private investment, and proactive government policies for accelerating the process of digitization. Equally significant is investment in digital skills to expand the technical pool of the continent, which is entering a new trajectory of growth with the formation of free trade under AfCATA. The report also has taken note of the mobile Internet, which is transforming life across the continent.
