The African entertainment and media (E&M) industry is undergoing a transformative phase, driven by technological advancements, improved connectivity, and a young, digitally savvy population. According to PwC’s'Africa Entertainment and Media Outlook 2024–2028',the continent’s E&M markets are showing remarkable resilience amidst global macroeconomic challenges. In 2023, South Africa, Nigeria, and Kenya all outperformed the global average revenue growth rate of 5.0%, with Nigeria leading at 15.0%, followed by South Africa at 11.7% and Kenya at 5.8%. This growth underscores the potential of Africa’s E&M sector, which is increasingly becoming a focal point for investors and global players.
Digital Transformation and Connectivity Drive GrowthA key driver of Africa’s E&M growth is the rapid expansion of mobile connectivity. Unlike many global markets where fixed broadband dominates, Africa’s low fixed broadband penetration has made mobile services the backbone of its digital economy. The rollout of 4G and 5G networks is critical, with South Africa and Kenya expected to see 4G subscriptions overtake 3G by the end of 2024, while Nigeria will reach this milestone by 2026. This shift is enabling greater access to digital content, particularly in video, gaming, and over-the-top (OTT) streaming services. Video content, especially social video on platforms like TikTok and Instagram, dominates data consumption in South Africa, accounting for 82.2% of all data used.
OTT and Internet Advertising: The Future of Revenue GrowthOTT platforms and internet advertising are emerging as the fastest-growing segments across Africa. Despite challenges such as rising subscription costs and economic pressures, OTT subscriptions are projected to grow significantly. South Africa, the most established market, is expected to add nearly 1.6 million OTT subscribers by 2028. Meanwhile, Nigeria and Kenya are witnessing explosive growth in internet advertising, with Kenya’s market projected to grow at a compound annual growth rate (CAGR) of 17.4%, the fastest in the world. Nigeria’s internet advertising revenue is also set to more than double between 2023 and 2028, fueled by its ambitious broadband plan aiming for 90% coverage by 2025.
Live Events and GamingThe post-COVID rebound of live events has been a significant trend across Africa. In 2023, live music ticket sales in Nigeria and Kenya surpassed pre-pandemic levels, while South Africa hosted major international artists and festivals. This resurgence highlights the enduring appeal of in-person, tech-enabled experiences. Similarly, the gaming and esports sector is gaining traction, particularly in mobile gaming, which dominates due to the accessibility of smartphones. South Africa remains the continent’s largest video games market, with efforts to develop the PC gaming scene, while Nigeria is building a robust esports ecosystem. Kenya, uniquely, continues to see traditional gaming revenues outpace mobile gaming, though this gap is expected to narrow by 2028.
Challenges and Opportunities in AdvertisingWhile traditional broadcast TV advertising is slowing globally, Africa’s advertising landscape is evolving rapidly. Internet advertising is set to dominate, driven by increasing digital engagement and the rise of retail media. Nigeria, for instance, has seen retail search advertising account for 27.3% of paid search revenue, supported by a strong e-commerce sector. However, the dominance of global tech giants like Google poses challenges for local players, prompting regulatory scrutiny in markets like South Africa. Connected TV (CTV) advertising is also emerging as a growth opportunity, particularly in South Africa, where revenue is expected to more than double by 2028.
The Role of AI and Local ContentArtificial intelligence (AI) is poised to play a transformative role in Africa’s E&M industry. From content creation and recommendation engines to customer support and advertising, AI is enhancing efficiency and personalization. The African Union’s Continental AI Strategy, endorsed in 2024, aims to guide responsible AI development across the continent. Additionally, the focus on local content and cultural representation is becoming a priority for OTT platforms and content producers.
The FutureAfrica’s E&M industry is on a trajectory of sustained growth, fueled by digital transformation, improved connectivity, and a young, dynamic population. While South Africa remains the regional leader in terms of market size, Nigeria and Kenya are emerging as high-growth markets, driven by their youthful demographics and expanding digital infrastructure.
