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Outlook on Africa’s Gaming Industry 2020-2025 – Mobile Gaming Will Hold a Major Market Share

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Rugby’s global expansion increases in Africa
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The “Africa Gaming Market – Growth, Trends, and Forecasts (2020-2025)” report has been added to ResearchAndMarkets.com’s offering.

The gaming industry is expected to register a CAGR of 12% during the forecast period (2020-2025). The most recent trend is the growing availability and popularity of multi-functional gaming console, which is emerging in the market and helping in growing the market of video games in the region.

Africa is the only region in the world where the youth population is increasing. By 2050 Africa’s young people, i.e., those aged between 0 and 24 years old, will increase by nearly 50 percent. Africa will have the most significant number of young people. Africa’s youth are critical to the continent’s future when it comes to mobile and gaming as a whole.

African studios are making new inroads by launching original locally produced content on Netflix. Several local content productions have been nominated for several global awards, including the Oscars. The Annecy Festival in 2020 will be focusing on animation from Africa. In addition to this, government initiatives in the region are adopting gaming solutions for educational purposes. Developments such as these will provide opportunities for the gaming industry in the area.

During the lockdown, the Entertainment streaming and gaming industries are thriving. The global suspension or cancellation of most sporting events has left punters without live games to bet on, aside from re-runs of filmed matches. The knock-on effect is that sports betting, which accounts for most of the industry’s revenue, has crashed to almost nil.

While the traditional gambling industry is facing unparalleled losses, online gambling sites have reported a surge in activity since the national lockdown came into effect on 27 March 2020. While online casinos worldwide have reported a sharp increase in gambling, as lockdown periods are extended, and financial stresses intensify, people may become increasingly hesitant to spend money on non-essential pastimes, such as gambling.

Key Market Trends

Mobile Gaming Segment Expected to Have Major Market Share

  • Mobile gaming generates close to half of the revenue that the gaming industry gets annually. More than 200 million Africans are below 35 years, and this figure might double in a decade. Africa has a huge market for gaming and smartphone companies.
  • Mobile gaming is gaining popularity in remote parts of Africa. For example, more than 290 million people in North Africa use mobile phones. The mobile market in the region generates $90 billion annually.
  • One of the major drivers for the growth of mobile gaming is the potential to spawn a massive real-money gaming industry around the continent. Mobile tech spreads around the continent, large swaths of Africa are also paving the way for legal betting and gaming.
  • However, acceleration in network rollouts by mobile operators in Sub-Saharan Africa has been a vital driver of the reduction in the coverage gap. Infrastructure deployment in Sub-Saharan Africa increased 3G coverage from 63% in 2017 to 70% in 2018, extending access to more than 80 million people. 3.3 billion people live in areas covered by mobile broadband networks but do not use mobile internet – this usage gap’ is more than four times greater than the coverage gap. Such factors might harm gaming companies operating in the region.

Issues Such as Piracy, Laws & Regulations, and Concerns Relating to Fraud During Gaming Transactions will Impact the Growth of the Market

  • Most African countries have gaming commissions and laws that regulate gambling. South Africa has clear gaming laws and regulations. It was the first country to create gambling regulation in the continent. Also, online casinos are popular in the country.
  • In South Africa, several legislative attempts to further restrict online gambling and payment transactions of unlicensed operators have been postponed in recent years. However, some legislators and regulators at the provincial level have called for a less restrictive regime.
  • There is currently an ongoing political and religious debate on the perceived high number of minors accessing gambling. As a result, in May 2019, the minister of finance urged the National Gaming Board (NGB) to stop issuing gaming and betting licenses immediately. The government restricted gambling advertising as of January 2019. Additional measures to ensure responsible gambling and revenue collection to the state budget are on the list.
  • A new advocacy organization designed to collaborate, coordinate, partner, build and sustain the growth of esports on the continent has been formed. ESFA or The Esports Federation of Africa is established by a community of both private esports entities, and national federations. WESCO affiliates it. With the launch of the ESFA, African gamers now have a voice, an advocate, an organization with grassroots developments of players at its core. These will provide better opportunities and therefore strengthen the local market in the region.

Competitive Landscape

The gaming market is fragmented as the demand for online games, and increasing penetration of mobile applications across the region will help attract new players in this market over the next few years. Recent developments in the market are:

  • In May 2020, Sony announced new PlayStation Studios branding for its first-party PS5 games. Sony will be using the new PlayStation Studios brand for its first-party exclusives going forward as a way to let customers know that a game comes from one of Sony’s in-house development teams.
  • In August 2019, Konami Digital Entertainment BV announced that the mobile version of e-Football PES 2020 would be released in October, and it represents a complete overhaul of the current PES 2019 mobile game. The latest major update to the PES Mobile series, which celebrated over 200 million downloads earlier this year, brings many of the critical features and licenses already announced for e-Football PES 2020 on PC and console.

Africa

Women in Gaming Africa Partners with All-in Diversity Project to Advance Diversity, Equity & Inclusion across Gaming

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Women in Gaming Africa (WiG) proudly announces its strategic partnership with the All-in Diversity Project, a globally recognised organisation dedicated to advancing diversity, equity, and inclusion (DEI) within the gaming sector. This collaboration marks a significant step forward in fostering greater representation and empowerment across the industry, particularly within the African continent.

As leaders in their respective domains, Women in Gaming Africa and the All-in Diversity Project share a common mission: to drive positive change by promoting diversity and inclusivity in all aspects of the gaming sector. By joining forces, they aim to amplify their impact and reach, ensuring that underrepresented voices and perspectives are heard and valued within the global gaming community.

Reflecting on the partnership, Kelly Kehn, Co-Founder of All-in Diversity Project remarked, “We are thrilled to partner with Women in Gaming Africa in our ongoing pursuit of fostering diversity, equity, and inclusion within the gaming industry. This collaboration not only extends our reach across the globe but also underscores our belief in the mutual benefits of partnering. By joining forces, we have a unique opportunity to learn from each other, share insights, and elevate the dialogue surrounding DEI in Africa and beyond.”

Empowering diversity in gaming isn’t just a vision; it’s a commitment. Our collaboration with All-in-Diversity is a powerful stride towards inclusivity, diversity & empowerment; fostering a vibrant community where every voice thrives. Together, we pave the way for a stronger, more diverse future in gaming. I encourage those reading this to join us in shaping tomorrow’s industry today!

Through this partnership, Women in Gaming Africa and the All-in Diversity Project will leverage their combined expertise, resources, and networks to drive meaningful change and create a more inclusive gaming ecosystem. By championing diversity and empowering individuals from all backgrounds, they aim to cultivate a culture of belonging where everyone can thrive and contribute to the industry’s success.

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Africa

3 Oaks Gaming to enter South Africa with Supabets

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3 Oaks Gaming to enter South Africa with Supabets
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iGaming distributor to extend global presence with latest regulated market push

3 Oaks Gaming, an established distributor of iGaming content, is set to go live in the South African iGaming market through a partnership with leading operator, Supabets.

With this collaboration, 3 Oaks Gaming’s diverse portfolio of games will be accessible to players on Supabets’ online platform. Users will soon be able to enjoy a plethora of top-performing titles from the iGaming distributor, including Sun of Egypt 3: Hold and Win, Green Chili: Hold and Win, and Aztec Fire: Hold and Win.

Founded in 2008, Supabets has established itself as one of the premium brands in the region, providing its customers with a comprehensive range of sports betting markets and wide selection of casino games.

This latest news is set to reinforce 3 Oaks Gaming’s strategic vision for global expansion. Venturing into the African continent for the first time significantly broadens the supplier’s audience reach, signalling a new era of commercial growth.

Sebastian Damian, Managing Director of 3 Oaks Gaming, said: “This marks a pivotal moment for our company as we prepare for our content to seamlessly integrate with Supabets, enriching the gaming experience for South African players.

“We are confident that our games will leave a lasting impression, and we eagerly anticipate the journey ahead with our esteemed partner.”

Bavu Mpama, Head of Product at Supabets, said: “3 Oaks Gaming offers an extensive collection of slots that we believe will captivate and entertain our users. This collaboration is part of our commitment to continuously enhance our casino offering for our players.

“We’re poised to redefine the iGaming landscape in South Africa, setting new benchmarks for excellence in the industry.”

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Africa

Kiron Interactive strengthens Ethiopian performance with Hulu Sport deal

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Kiron Interactive strengthens Ethiopian performance with Hulu Sport deal
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Kiron Interactive, a leading provider of virtual sports and numbers games, has announced the expansion of its partnership with Hulu Sport, a tier-one operator in Ethiopia, with the launch of its innovative Mobile Lite Football Leagues product.

The new offering, known as the Hulu League, is an extension of Kiron’s existing partnership with Hulu Sport, which already includes the integration of Kiron’s products in the operator’s retail and online channels via its omnichannel Betman platform.

Mobile Lite Football Leagues is a tailored version of Kiron’s popular virtual football product, designed specifically for mobile devices in markets with limited bandwidth. The game offers an immersive and engaging virtual football experience, complete with a wide range of betting markets while requiring a fraction of the regular data consumption.

The Hulu League launch will significantly boost Hulu Sport’s mobile offering, providing its players with a unique, entertaining and data-light virtual football betting experience that Kiron Interactive is renowned for in the industry.

Steven Spartinos, Kiron Co-CEO, said: “We are honoured to extend our partnership with Hulu Sport, one of Ethiopia’s leading operators. The launch of the Hulu League demonstrates our commitment to delivering innovative and tailored products that meet the specific needs of our partners and their players.

“We look forward to working closely with the Hulu Sport team to ensure the success of this new bespoke offering and to exploring further opportunities to enhance their product portfolio with our cutting-edge virtual sports content.”

Kibrom Gebremeskel, Deputy General Manager at Hulegeb Online Solution, said: “We are excited to expand our partnership with Kiron Interactive and bring the engaging Hulu League virtual football product to more players in Ethiopia. This innovative offering perfectly complements our existing sports betting portfolio and provides our customers with a unique and immersive gaming experience.

“Kiron’s Mobile Lite Football Leagues product has been tailored to meet the specific needs of our market, and we are confident that it will be a major hit with our players. We look forward to working closely with the Kiron team to maximise the potential of this new content and to further strengthen our position as a leading operator in the Ethiopian market.”

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