Thursday, December 9, 2021

Africa digital economy could reach $180bn by 2025: Google, IFC

Africa is currently home to 700,000 developers and venture capital funding for startups has increased in recent years.

• November 12, 2020
(Credit: Cfamedia.ng)

Africa’s Internet economy has the potential of reaching $180 billion or 5.2 per cent of the continent’s Gross Domestic Product (GDP) by 2025, according to a new report, e-Conomy Africa 2020, released by Google and the International Finance Corporation (IFC).

Stephanie von Friedeburg, Chief Operating Officer of IFC said in a statement that Africa’s Internet was likely to also contribute up to $712 billion to its economy by 2050.

She attributed this growth to a combination of increased access to faster and better quality Internet connectivity, a rapidly expanding urban population, a growing tech talent pool, a vibrant startup ecosystem, and Africa’s commitment to creating the world’s largest single market under the African Continental Free Trade Area agreement.

Currently, Africa is home to 700,000 developers and 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 alone, according to Partech Ventures Africa.

“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”, she said, adding that this would not only ensure a more resilient recovery, but make Africa a world leader in digital innovation and beyond.

Ms. Friedeburg said that digital startups in Africa were driving innovation in fast-growing sectors, including fintech, healthtech, media and entertainment, e-commerce, e-mobility, and e-logistics, thereby contributing to Africa’s growing Internet Gross Domestic Product (iGDP) — defined as the Internet’s contribution to the GDP.

Google Africa director Nitin Gajria said that Google and IFC created the report to highlight the role the digital startup sector is playing in driving Africa’s growth and in order to showcase and support the opportunities the continent presents.

He said that an analysis within the report, conducted by Accenture, found that the continent’s Internet economy in 2020 could account for approximately $115 billion of Africa’s $2.554 trillion GDP representing 4.5 per cent of total GDP, up from $99.7 billion 3.9 per cent of total GDP in 2019, with the potential to grow as the continent’s economies develop.

Mr. Gajria said that investments in infrastructure, consumption of digital services, public and private investment, new government policies and regulations will play important roles in supporting Africa’s digital growth.

The News Agency of Nigeria (NAN) quoted the report as saying that investments in digital skills would, however, need to increase in order to help drive technology usage and continue to grow the continent’s talent pool.

More from Peoples Gazette

Abuja Electricity Distribution Company (AEDC) and United Bank of Africa (UBA)

Abuja

UBA takes over AEDC, to appoint interim manager

United Bank of Africa (UBA) has taken over Abuja Electricity Distribution Company (AEDC) over failure of its major shareholder to payback a loan.

President Muhammadu Buhari

States

I can’t handle evil confronting Nigeria alone: Buhari

President Muhammadu Buhari says the quantum of adversity his regime is confronting can only be surmounted with the assistance of all Nigerians.

Stock Market

Economy

Price rally spurs growth at stock market

Market breadth was positive with 20 stocks against 11 losers.

President Muhammadu Buhari and late Sylvester Oromoni Jnr

Rights

I’m as angry as other Nigerians about Sylvester Oromoni’s death: Buhari

“The President urges the Police to continue the ongoing investigation until they get to the root of the matter in order for the law to take its course.”

Former Chief of Air Force, Mohammed Dikko Umar

Anti-Corruption

I acquired N9.7 billion assets from my travel allowance, ex-Air Force chief Dikko Umar tells court

Mr Umar made his statement on Wednesday while fielding questions from the prosecution counsel, Sylvanus Tahir, at the Federal High Court, Abuja.

Abdullahi Attah

Economy

FCT-IRS rakes in N118 billion, targets more in 2022: Official

The FCT-IRS said it remitted N118 billion into the federal government coffers as of November.