Africa’s Internet economy has the potential to reach 5.2 per cent of the continent’s gross domestic product (GDP) by 2025, contributing nearly $180 billion (Sh18 trillion), a new report says.
The report released yesterday by Google and the International Finance Corporation (IFC) projects the potential contribution could reach $712 billion (Sh71.2 trillion) by 2050.
Increased access to faster and better-quality Internet connectivity, a rapidly expanding urban population, growing tech talent pool and a vibrant startup ecosystem will be key to this growth.
The African Continental Free Trade Area will also contribute to improving the continent’s internet economy, the report said.
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“The digital economy can and should change the course of Africa’s history,” said IFC Chief Operating Officer and Interim Managing Director Stephanie von Friedeburg. “This is an opportune moment to tap into the power of the continent’s tech startups for much-needed solutions.”
The report indicates that digital startups in Africa are driving innovation in fast-growing sectors including fintech, healthtech, media and e-commerce.
“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.