Africa’s Internet Economy Set to Soar, Contributing $180B to GDP by 2025
Africa’s internet economy is poised for tremendous growth, with the potential to contribute nearly $180 billion to the continent’s gross domestic product (GDP) by 2025. This optimistic outlook comes from a report titled e-Conomy Africa 2020, jointly released by Google and the International Finance Corporation (IFC). The report emphasizes how the growing urban and mobile population in Africa presents substantial opportunities for the internet economy to thrive.
Currently, internet penetration stands at 40% in Africa, and the report suggests that a 10% increase in mobile internet penetration could boost GDP per capita by 2.5% in Africa, exceeding the global average of 2%. By further extending internet access to 75% of the population, the potential to create 44 million new jobs becomes apparent. As a result, the continent’s contribution to the global economy could reach an impressive $712 billion by 2050.
Stephanie von Friedeburg, the Interim Managing Director, Executive Vice President, and Chief Operating Officer of IFC, expressed her belief in the transformative power of the digital economy in Africa. She sees this as a significant opportunity to leverage the innovative solutions offered by the continent’s tech startups, addressing the crucial need for improved access to education, healthcare, and finance. Furthermore, she believes that embracing digital innovation will contribute to a more resilient recovery and position Africa as a global leader in the field.
The report highlights the role of digital startups in driving innovation across various sectors in Africa, including Fintech, Healthtech, media and entertainment, e-commerce, e-mobility, and e-logistics. These sectors are actively contributing to the growth of Africa’s internet gross domestic product (iGDP), which measures the internet’s impact on the overall GDP.
Nitin Gajria, Google Africa Director, stated that the report was created by Google and IFC to showcase and support the opportunities present in Africa’s digital startup sector. Gajria realizes the immense potential and the role these startups play in driving the continent’s growth.
With Africa’s internet economy forecasted to skyrocket, it is essential to harness this growth to uplift communities, bridge the digital divide, and fuel economic development. By embracing digital innovation, Africa can truly rewrite its history and become a frontrunner in the global digital landscape.
In conclusion, the e-Conomy Africa 2020 report paints a promising picture for Africa’s internet economy. The projected contribution of $180 billion to the continent’s GDP by 2025 showcases the immense potential for growth. By prioritizing digital innovation and extending internet access, Africa can pave the way toward a more prosperous future, benefiting its people and emerging as a leader in the digital revolution.
