June 22, 2024
Ict

The Africa Creator Economy Market Is Driven By The Rapid Growth Of Digital Creations

The Africa creator economy refers to independent professionals such as graphic designers, programmers, animators, writers, musicians, and photographers among others who monetize their skills and talents. The rising access to affordable internet and smartphones has enabled the growth of digital marketplaces and platforms that connect creators with customers, clients, and other creators. Digital creators are now able to build careers and generate income from their original work across various creative domains including digital art, web and app development, graphics and animation, music and podcasts, film and video, writing and publishing, and photography. The availability of e-payment solutions has also facilitated direct payments and remote transactions for creators’ services and products. Furthermore, the increasing social media penetration is allowing creators to establish an online presence and brand for their work.

The Africa Creator Economy Market is estimated to be valued at US$ 3.08 Billion in 2023 and is expected to exhibit a CAGR of 28% over the forecast period 2023 to 2030, as highlighted in a new report published by CoherentMI.

Market Key Trends:

One of the key trends driving growth in Africa’s creator economy has been the rising popularity of digital content subscriptions. Many creators are now offering exclusive access to paid subscriptions for patrons who support their work on platforms such as Patreon, Gumroad, and Kaspifluency. These help diversify creators’ revenue streams beyond one-time purchases and build sustainable income. Another important trend is the emergence of incubators and accelerators focused on facilitating opportunities, networking, funding and mentorship for African creators. For example, Anthropic’s PBC accelerator and Anthropic’s Pan-African Creator Program are boosting startups focused on AI applications.

Porter’s Analysis:

Threat of new entrants: The threat of new entrants in the Africa creator economy market is moderate as there is substantial initial capital requirement for infrastructure and resource development. However, startups can tap into government support and venture capital funding to enter the market.

Bargaining power of buyers: The bargaining power of buyers in the Africa creator economy market is high. Buyers have a wide range of options across different platforms to choose from.

Bargaining power of suppliers:
The bargaining power of suppliers is moderate. While partnerships are important for platforms, suppliers face moderate switching costs to move to other platforms.

Threat of new substitutes: The threat of substitutes is high given the dynamic nature of the digital economy. New business models and technologies can disrupt existing value propositions.

Competitive rivalry: Competition in the Africa creator economy market is intense given the presence of global as well as regional players operating across different segments.

Africa Creator Economy Market Segmentation:

  • By Platform Type:
    • Video
    • Audio
    • Writing & Publishing
    • Gaming
    • Digital Products
    • Learning & Education
    • Others
  • By Business Model
    • Freelancing
    • Subscriptions
    • Advertising
    • Ecommerce
    • Crowdfunding
    • Events & Experiences
    • Others

Key Takeaways :

The Africa Creator Economy Market Size is expected to witness high growth over the fore cast period supported by increasing smartphone and internet penetration. Rapid urbanization and growing youth population are creating new opportunities for digital platforms. The global Africa Creator Economy Market is estimated to be valued at US$ 3.08 Billion in 2023 and is expected to exhibit a CAGR of 28% over the forecast period 2023 to 2030.

Regional Analysis: The East Africa region currently dominates the Africa creator economy market with countries like Kenya and Nigeria having a vibrant startup ecosystem. government initiatives to develop digital skills and infrastrucutre are encouraging entrepreneurship. South Africa also has a sizable market driven by a growing online consumer base.

Key Players operating in the Africa creator economy market are SafeBoda, Gokada, MaxAB, Twiga Foods, Sendy, Lori Systems, Kobo360, Jumia, Konga, Cellulant, Interswitch, Flutterwave, Paystack, Paga, Wave, Andela, Takealot, Mdundo, OPay. Companies are focusing on strategic partnerships and introducing specialized products and services to capture different customer segments. New business models around social commerce and hyperlocal deliveries are also gaining traction.

 

*Note:
1. Source: CoherentMI, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it