The Burgeoning African Video Game Industry

Nov 07, 2025 0

The African video game market has experienced rapid growth in recent years. According to a report, the number of gamers in sub-Saharan Africa nearly tripled from 77 million in 2015 to 186 million in 2021. Projections indicate that gaming revenue in Africa will surpass $1 billion for the first time in 2024.

This surge is primarily driven by the widespread adoption of mobile gaming, with 95% of gamers in the region using smartphones or tablets rather than consoles or personal computers. This trend underscores the importance of mobile-first engagement in the African gaming market. Smartphones generated 61.7% of the revenue in 2024, further emphasizing the dominance of mobile gaming. Affordable entry-level devices and zero-rated gaming data offers from telecommunications companies (telcos) contribute to this growth.

Several factors fuel this expansion, including increased internet accessibility, mobile penetration, and a growing youth population eager for interactive entertainment. The rise of high-speed internet connections, especially in emerging economies, has made online gaming practical for more people in recent years.

Internet Penetration in Africa

Key Markets and Revenue

In 2022, revenues from games sold in Africa reached $862.8 million, an 8.7% increase from 2021. Mobile games accounted for 90% of the region's total video game sales in 2022.

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Nigeria emerged as the top video gaming market in Africa in 2022, surpassing South Africa by a small margin. Nigeria generated $249 million from gaming activities, while South Africa earned $236 million. Other top performers in Africa include Kenya ($46 million), Ethiopia ($42 million), and Ghana ($34 million). Ethiopia experienced the fastest growth rate at 13%.

The combined revenue of Nigeria and South Africa was twice as much as that of the other eight leading countries together, highlighting the relative maturity of these markets when compared with the rest of the continent.

Growth Drivers and Future Prospects

GSMA, the global trade association for mobile operators, projects that smartphone ownership in sub-Saharan Africa will rise from 51% in 2022 to 88% in 2030, providing more people with access to online gaming platforms. Rapid urbanization and rising incomes of African consumers are also expected to boost the market for consoles, which are currently scarce and expensive in many African countries.

Cloud gaming is scaling rapidly at a 14.1% compound annual growth rate (CAGR) due to significant data-center investment, promising console-grade experiences without the need for hardware imports. Growth vectors align with telco-OTT bundles that package gaming subscriptions, edge caching that compresses latency, and pay-as-you-go micro-payments that democratize access.

The 18-35 cohort provided 52.3% of users and most discretionary spending in 2024, converting cultural nostalgia and competitive pride into sustained Average Revenue Per Daily Active User (ARPDAU). Under-18 gamers, expanding at a 13.4% CAGR, will swell the onboarding pipeline for the next decade, accelerated by smartphone penetration in secondary-school populations. Gender parity trends surface in mature markets such as South Africa, where women now account for 46% of gamers. As younger cohorts age into higher income brackets, their ingrained gaming habits will compound revenue growth.

Key Players and Investments

Sony Innovation Fund, the venture capital arm of Sony Corporation, is capitalizing on the African video game sector’s long-term growth prospects. In January, the Fund announced a strategic investment in Carry1st, marking the inaugural investment out of Sony Innovation Fund: Africa. This partnership could open new doors for PlayStation in Africa.

Carry1st’s USD 27 million Series C, anchored by Sony, demonstrates an appetite for platform publishers that marry fintech integration with culturally tuned hits. Disney’s co-development pact with Maliyo Games underscores global IP’s reliance on local narrative expertise. International entrants prefer partnership and investment approaches over direct greenfield competition, hedging against regulatory complexity while tapping ready-made cultural insights. Meanwhile, regional independents like Nyamakop and Kiro’o Games leverage government grants and cross-platform engines such as Unity to ship globally viable IP.

The Rise of Esports in Africa

Esports, or competitive video gaming, is a rapidly evolving field that has attracted global participation from gamers and investors alike. Africa has a vibrant and passionate community of gamers eager to showcase their skills and compete for prizes in regional and international tournaments.

Esports in Africa has grown rapidly due to improved access to high-speed internet and gaming technology, enabling gamers to interact and compete online, as well as broadcast their gameplay to a larger audience. The rising number of local and international tournaments hosted on the continent, particularly in South Africa, is another driver of esports growth.

Seventeen African federations now belong to the Global Esports Federation, mainstreaming competitive gaming. Ghana’s 2024 federation pact and Rwanda’s dedicated organization offer structured pathways for talent development. Carry1st’s management of Call of Duty: Mobile qualifiers, spanning seven regions with a USD 15,000 purse, signals alignment between local organizers and global circuits. The March 2025 launch of Africa’s dedicated League of Legends server slashes ping times, bolstering spectator appeal.

Esports in Africa

Challenges and Opportunities

Despite the promising growth, the African gaming industry faces several challenges. These include:

Infrastructure limitations: Low internet penetration, high data costs, and unreliable power supply, particularly in regions outside cities and urban areas.
Affordability: The cost of gaming software and hardware remains a barrier for many potential customers.
Lack of recognition: Gaming is often not recognized as a serious sport or career, limiting opportunities for esports players and teams.
Financial support: Access to resources for gaming equipment, training, and travel to tournaments is limited.
Localization: Many international video games lack local relevance in terms of cultural context and language.

However, these challenges also present opportunities for innovation and growth. Addressing misconceptions about gaming, creating region-specific pricing, and fostering local game development can help unlock the industry’s full potential.

Localization and Cultural Relevance

Consumers in Africa are showing a growing preference for localized gaming content that reflects their cultural narratives and social issues, resulting in a rise in demand for games featuring indigenous stories and languages. Localization studies show 76% of consumers prefer experiences in their native language, and the continent’s 3,000 cultures make cultural resonance a decisive retention lever.

The frenetic mobile game "Disney Iwájú: Rising Chef" aims to introduce players to Nigerian food culture. It was developed by Nigerian studio Maliyo Games, which specializes in games for smartphones and tablets.

Local studios localize mythic narratives, nudging conversion by resonating with cultural archetypes. French, Arabic, and Swahili versions widen addressable audiences, while vernacular voice-overs enrich narrative immersion.

The Role of Mobile Money

M-Pesa processed USD 314 billion in annual value for 51 million clients, establishing a continental payment backbone for one-click in-game purchases. Micro-transaction baskets averaging USD 0.25 fit local buying power and vault conversion rates relative to credit-card gateways.

Free-to-play with in-app purchases captured 46.7% of the 2024 Africa gaming market size, confirming micro-transaction compatibility with mobile-money wallets. Subscriptions, although only 8.5% of spend, are scaling at 13.9% CAGR, aided by Xbox Game Pass mobile bundles via carrier billing.

South Africa's Gaming Scene

South Africa's video gaming compared to the rest of Africa is unchallenged due to the large number of wealthy South Africans living in cities like Durban, Cape Town, Pretoria, Bloemfontein and Johannesburg. With internet infrastructure being more than sufficient to support esports, and with Fibre being almost fully integrated in cities and wealthy suburban areas, the growth in online gaming can only be motivated.

Video game developing in the country is not doing well, but events and eSports organizations like Mind Sports South Africa, the Digital Gaming League, Orena and LANX have jumped up in 2015 with the big demand for eSports tournaments and other video game events in large cities. However, it is only Mind Sports South Africa that continually holds events in all the provinces and runs school events.

South Africa has been dominant in eSports on the continent, and great internationally. Big tech companies like MWEB and Telkom host local server game servers which exponentially helps improve gaming in South Africa. This assists the improvement of local competitive gaming and brings the local gaming community together easier.

Gaming in South Africa

In conclusion, the African video game industry is poised for significant growth, driven by mobile gaming, increasing internet penetration, and a youthful population. While challenges remain, strategic investments, localization efforts, and the rise of esports offer promising opportunities for the industry to flourish.