The African gaming market is witnessing a significant rise and showing no signs of slowing down. With a young population and a strong affinity for free-to-play games, Africa is emerging as a highly promising hub for mobile game developers.
In this insightful guest post, Seyifunmi Jesuloluwa, an associate product manager at Carry1st, leverages her experience in scaling games in Africa to provide valuable guidance on navigating the growing African gaming market, addressing the challenges within this dynamic ecosystem, and highlighting the substantial growth potential it offers.
The gaming industry in Africa is on the brink of a breakthrough, with forecasts indicating a significant growth surge from 2024 onwards. Projections from Newzoo, commissioned by Carry1st, suggest that Africa’s gaming sector will surpass the $1 billion milestone this year. Mobile gaming accounted for $778.6 million in revenue in 2022, capturing a staggering 90% of total game sales. Leading the way are Nigeria with $249 million and South Africa with $236 million. This growth is driven by Africa’s youthful population, deeply passionate about gaming, ranging from hardcore enthusiasts to casual players.
According to Statista, the number of smartphone users in the region is expected to reach 689 million by 2028.
Seyifunmi Jesuloluwa
Technical Challenges
The significance of smartphones is rapidly increasing, particularly in Sub-Saharan Africa. Statista’s projections indicate that the number of smartphone users in this region will hit 689 million by 2028. This growth trend reflects the rising adoption of mobile technology over recent years, showcasing how it is reshaping communication and information access in Africa. Nigeria stands out with the highest smartphone penetration on the continent, laying a strong foundation for the burgeoning gaming industry.
However, this growth is accompanied by challenges. Internet accessibility remains a hurdle, with data costs posing a barrier for gamers. The prevalence of low-end 2G devices necessitates the development of games that are not only entertaining but also lightweight for seamless loading and gameplay.
Encouragingly, GSMA’s 2023 report anticipates a significant uptick in 4G adoption, with 5G also gaining traction, especially in urban areas. This suggests that concerns regarding game build sizes may diminish in the future. However, it is crucial to ensure that players enjoy a smooth gaming experience despite varying network conditions on their devices.
Localization Strategies
Effective localization is key to winning in Africa’s gaming market. This involves customizing game content to resonate with diverse cultures and cater to gamers across the continent. Carry1st’s Africa Glam, a revamped version of “Hollywood Story” by Nanobit, is a prime case in point. They skillfully adjusted the storyline and translated menus into popular African languages such as French, Pidgin English, and Swahili.
In terms of pricing, adapting to Africa’s purchasing power, diverse currencies, and exchange rates can unlock greater revenue potential compared to simply setting dollar-based prices for in-game items. Data from Newzoo underscores the gaming enthusiasm in South Africa, where over 40% of the population, a staggering 24 million individuals, engage in gaming regularly. Similar trends are observed in Ghana, Nigeria, and Kenya, highlighting the vast gaming market potential in Africa and emphasizing the importance of localized pricing strategies. The report also outlines key areas for focusing on pricing localization efforts on the continent.
Exploring alternative payment methods is essential to retain paying players.
Seyifunmi Jesuloluwa
Alternative Payment Solutions for African Gamers
Credit card usage in Africa remains low, averaging 3.92% across 28 countries in 2021 (Global Economy data). To mitigate the risk of losing paying players, it is imperative to explore alternative payment options. Collaborations and partnerships play a vital role in establishing a robust monetization system and refining payment channels for users across Africa. Mobile money and digital wallets have emerged as popular and widely accepted payment methods in the region, enhancing the accessibility of in-game purchases and fostering trust and familiarity among users. Carry1st’s Pay1st gateway serves as a prime example, offering a platform for diverse payment preferences.
By forming strategic alliances with local gaming influencers, communities, and industry leaders, valuable insights can be gleaned into the nuanced preferences and behaviors of gamers across various African countries. Leveraging this intelligence is crucial for tailoring payment solutions to seamlessly integrate with the unique characteristics of each local gaming ecosystem, thereby enhancing the overall user experience.
In summary, Africa’s gaming industry is not just poised for growth; it represents a treasure trove waiting to be explored. By leveraging these insights, stakeholders can navigate challenges and contribute to the flourishing gaming landscape in Africa. The future is not only promising but also teeming with boundless opportunities.
Edited by Paige Cook
