A new study by Google and International Finance Corporation has revealed that the Internet economy and business has the outstanding potential of contributing $180bn to the economy of Nigeria and other African countries by 2025.
The findings of the study which was made public on Wednesday, November 13 2020, featured within its pages the numerous growth opportunities within the African continent, providing a road map for investment opportunities. It is estimated by the report that despite the effect of Covid 19, Africa’s internet Gross Domestic Product is projected to get to $712bn by 2050.
According to the report also, Tech talents in Africa is on the rise with the number of tech developers in Nigeria above 83,000, and across Africa, the number is close to 700000 for professional developers. This is largely due to a growing urban and mobile population.
The report points out the countries with thriving internet economies and it mentions Nigeria, Morocco, Kenya, Tunisia, South Africa etc.
Speaking on the report, the Interim Managing Director, Executive Vice President and Chief Operating Officer of IFC, Stephanie von Friedeburg, said, “The digital economy can and should change the course of Africa’s history.
“This is an opportune moment to tap into the power of the continent’s tech start-ups for much-needed solutions to increase access to education, healthcare, and finance, and ensure a more resilient recovery, making Africa a world leader in digital innovation and beyond”
As estimated by analysts, increasing Internet penetration to 75 per cent had the potential to create 44 million new jobs across board. And, necessary findings showed that digital start-ups in Africa were driving innovation in fast-growing sectors, including fintech, healthtech, media and entertainment, e-commerce, e-mobility, and e-logistics, contributing to Africa’s growing Internet GDP.
Google Africa Director, Nitin Gajria, said:
“Google and IFC have created this report to highlight the role the digital start-up sector is playing and other factors driving the continent’s growth in order to showcase and support the opportunities the continent presents”
According to analysts from Google and IFC, measures on proactive regulation were necessary to be adopted as regulatory inconsistency could hamper market access and create a limitation on investment opportunities for start-ups. They described Start-up Acts and regional harmonisation as initiatives which drive mutually beneficial growth.
It is, therefore, crucial for entrepreneurs, investors, and policymakers to continue to dialogue with regulators so as to encourage viable environments where digital businesses could thrive and succeed.