Africa’s Internet economy has the great potential to reach KSh 19.6 Trillion ($180 billion) by 2025 according to a report by Google and IFC. Currently, the digital economy contributes nearly KSh 12.5 Trillion ($115 billion) to the continent. The sector is expected to grow to KSh77.7 Trillion ($712 billion) by 2050.
Kenya leads all African countries in iGDP potential (which is the contribution of the internet economy to GDP). It is estimated that the internet economy will contribute $7.2 Billion to Kenyan’s GDP in 2020, representing 7.70%. By 2050, it is projected to contribute upto 15.17% of the GDP.
The drivers of the internet economy are; increased access to faster and better quality Internet connectivity, a rapidly growing urban population, an expanding pool of tech talent, a vibrant startup ecosystem, and the much anticipated African Continental Free Trade Area, the world’s largest single market.
Additionally, the increase in internet penetration in most African countries promises to drive growth in the digital economy. Over 520 million people in Africa now have access to the internet.
According to the report, Africa has a talent pool of 700,000 professional developers who are fueling the rapid expansion in the internet economy. The continent’s Fintech companies, E-commerce firms, Healthtech sector, Media and Entertainment industry, and E-mobility companies are also leading in the digital transformation.