Africa To Earn $180 Billion From Internet Economy By 2025 – Google, IFC

Africa’s Internet economy has the potential to reach 5.2percent of the continent’s gross domestic product (GDP) by 2025, contributing nearly $180 billion to its economy. This was contained in a report jointly released by Google and the International Finance Corporation (IFC).

The projected potential contribution could reach $712 billion by 2050, the report added.

Aiding this growth is 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.

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, 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, and ensure a more resilient recovery, making Africa a world leader in digital innovation and beyond,” said Stephanie von Friedeburg, Interim Managing Director, Executive Vice President and Chief Operating Officer of IFC.

Digital startups in Africa are driving innovation in fast-growing sectors, including fintech, healthtech, media and entertainment, e-commerce, e-mobility, and e-logistics, contributing to Africa’s growing internet Gross Domestic Product (iGDP) — defined as the internet’s contribution to the GDP.

“Google and IFC have created this report to highlight the role the digital startup sector is playing and other factors driving the continent’s growth, in order to showcase and support the opportunities the continent presents,” said Google Africa director Nitin Gajria.

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