- The digital revolution in Africa is pushing various sectors into new realms of possibility and the gaming industry is no exception.
- Blockchain technology has the potential to benefit both game producers and players by offering a secure and transparent method of handling in-game transactions.
- African game developers have chosen to look into incorporating new technologies into the games they offer, such as allowing players to use Bitcoin and blockchain technology while playing.
Gaming industry
The digital revolution in Africa is pushing various sectors into new realms of possibility and the gaming industry is no exception. GeoPoll’s latest report, ‘Gaming in Africa’, explores the growing gaming scene in Egypt, Kenya, Nigeria and South Africa.
The African gaming industry is emerging as the fastest growing for mobile gaming, driven by a young population, growing smartphone adoption and growing interest in mobile gaming.
Africa is the last frontier for the video game industry. In recent years, gaming has become the dominant form of entertainment worldwide, earning nearly $350 billion worldwide by 2023, according to an industry executive.
With the rise of mobile gaming over the past decade, the sector is now bigger than movies, music and streaming combined, moving the industry’s audience beyond its former archetypal US-based teenage male customers who could afford the relatively expensive game console.
This year, Africa has cemented itself as the fastest growing market for the mobile gaming industry. This is not surprising given the demographic trends in the region. The continent has the fastest growing population in the world, with more of them classified as millennials or Generation Z than the United States and China combined.
By 2050, 25 percent of the world’s population is expected to be African. Combine this with the rapid adoption of smartphones and you can see strong organic growth of new players engaged in popular mobile games such as Call of Duty Mobile, FC Mobile or Clash of Clans.
Serving this new generation of players still presents challenges. For example, only 3.92 percent of Africa’s population can access a credit card. Yet therein lies fintech’s transformative potential for gaming and financial inclusion across the continent.
Also read: Bridging Africa’s digital divide to drive economic growth
Developers making African themed games
In 2022, statistics from the World Bank and the African Development Bank reported 650 million mobile phone users in Africa. Smartphones are now the primary devices for playing video games, making up 95 percent of the gaming population.
With even localized African features including characters and elements. Developers include new elements such as ownership to leverage blockchain technology.
A Social Impact gaming company based in Kenya, Usiku Games Africa, is pioneering the new era of blockchain gaming in the country so that tech-savvy youngsters can soon start winning as the gaming industry continues to grow .
Now, with the introduction of GameFi β a phase in crypto that merges the best parts of gaming and decentralized finance β players engage with the game and in return receive non-tradable tokens (NFTs) and cryptocurrency rewards that they can redeem for profit. So the more you play, the more rewards you get.
Developers are looking into blockchain-based games
As cryptocurrency adoption becomes mainstream, the growth of blockchain gaming on the continent is inevitable.
A survey shows that 38 percent of the world’s 41.9 million cryptocurrency players (aged between 21 and 38) are the reason behind the growing interest in in-game trading using crypto and digital currency. Cryptocurrency has a huge potential to get involved in the gaming sector. It was reported that 80 percent of players with blockchain wallets are willing to buy game tokens with their digital currencies.
With 5.9 million players holding cryptocurrencies across Africa and the Middle East, Africa’s numbers could soar as the continent is expected to have the largest youth population by 2050.
African game developers have chosen to look into incorporating new technologies into the games they offer, such as allowing players to use Bitcoin and blockchain technology while playing. Indeed, this has resulted from the continent’s continued increase in tech-savvy individuals and may allow participants to capitalize on the wave.
Now, with Binance play-to-earn, every player can monetize their playtime by buying and selling NFTs in-game or completing goals in exchange for cryptocurrency rewards. To learn more, you can check out our guide on getting crypto and NFTs through play-to-earn.
Players can also trade their hard-earned tokens on cryptocurrency exchanges like Binance to earn even more. NFT-based games that have their own native token.
Read also: Bridging the digital divide in Africa to drive economic growth
The progress of the digital revolution in Africa
The gaming industry The expansion is increasingly bullish. Over the past five years, the number of video games on the continent has more than doubled, with South Africa leading the way.
Over the past five years, video games have been constantly evolving as more Africans have become active in the gaming space. Now, players can easily access games from their mobile phones and computers.
The coronavirus pandemic has helped the adoption of this hobby as it has kept many people locked indoors and made gaming one of the most preferred and accessible activities to stay connected and avoid boredom.
Progress has moved from consoles to smartphones, with Africa’s youth becoming increasingly tech-savvy in this multi-million dollar gaming industry. Coupled with the growing adoption of digital currencies, Africa is set to lead the gaming revolution.
Inspirational new and original play can come from Africa’s diverse and rich cultural heritage. By using local myths, stories and legends, game designers can make games more relevant to the African market.
The number of skilled African programmers, artists and designers who are excited about the video game industry is constantly increasing. Many gaming companies on the continent are now making games for the international market, allowing locals to enter the industry.
The gaming industry in Africa is booming due to the continent’s large and young population. In light of this, it is time for game designers to make games specifically for the African market and the preferences of African players.
Cryptocurrency adoption and gambling in Africa
African game producers may benefit from the widespread use of blockchain and cryptocurrency in gaming industry. The integration of Bitcoin can open up new financial perspectives by letting players earn and spend cryptocurrencies within games. Additionally, platforms like Bit Index AI make trading less complicated.
Blockchain technology has the potential to benefit both game producers and players by offering a secure and transparent method of handling in-game transactions.
If you want to attract foreign players and investors to Africa’s gaming business, consider incorporating cryptocurrencies into games.
Currently, 63 million of the 186 million players pay for games. As the continent begins to accept digital currencies, these African assets are expected to be the fastest growing in the world.
With the global value of crypto gaming at US$321 million as of 2020, 80 percent of players with crypto accounts are willing to use digital currency for gaming purchases and 67 percent for the opportunity to use cryptocurrencies in games .
Following the debut of Africa’s first Central Bank-backed digital currency, the e-Naira, in 2021, Nigeria has surpassed its African rivals in cryptocurrency adoption. Although Kenya has yet to develop its own regulated digital currency, it leads the world in peer-to-peer cryptocurrency exchange.
South Africa is now in the pilot stage of the Dunbar project, to facilitate cross-border payments with Mauritius, while approaching the development stage. Ghana appears to be considering digital currency regulations in the future, with the African country, along with Tunisia, Morocco and a few other countries, still exploring the idea of ββdigital currencies.
conclusion
Africa is a promising and fast-growing market for the gaming industry. Some promising subsectors of the gaming business include mobile gaming, Esports, game development, VR, and crypto integration. A growing number of young people, a diverse cultural heritage and a wealth of skills.
Developers, artists and designers make Africa a promising market for video game creators. Some African governments see the potential of the sector and are actively encouraging its expansion. Continued growth of the sector could lead to employment opportunities, innovation and global exposure to Africa’s unique culture and landscapes.