According to Slotegrator, technological advancements, economic development, and smartphone penetration are three of the most important elements driving expansion throughout the nation, positioning Africa as the next land of opportunity for the igaming industry in the future. Because of the unique set of conditions that exist in Africa, the online gaming industry is expected to grow at a fast pace in the future years, according to analysts.
It serves as a base for many emerging economies. Despite the fact that the current epidemic has kept inflation at bay, the gross domestic product of Sub-Saharan African nations has contracted at a considerably slower rate than that of the majority of other countries. It was predicted that the region’s GDP would expand by 3.6 percent in 2020 before the commencement of Covid-19. To put that in perspective, it would have been three times faster than the Eurozone’s projected growth for the same year. In any event, the economy is on the mend, with GDP growth projected to exceed 3 percent for the first time in 2021, according to forecasts.
Possibilities for Growth
Long-term continuous economic expansion has resulted in a growing middle class with rising buying power, which acts as a catalyst for global investment and continued economic development. In the near future, Africa will surpass all other continents in terms of greater than replacement level birth rates and a positive demographic dividend, according to estimates (the ratio of working-age people to their dependents). Furthermore, the demographic dividend will be a boon to the area because, if local businesses are able to scale up in order to handle the increasing active population, productivity will improve.
The latest technological advances are the last piece of the jigsaw that contributes to the area’s allure. While Africa is still catching up in terms of internet usage, things are rapidly changing as a result of contemporary infrastructures that are making mobile broadband connection more readily available to more people. Between 2014 and 2019, the number of individuals who use mobile broadband more than doubled, and the number of people who use mobile broadband is quickly increasing. At least 3G broadband is available to three quarters of Sub-Saharan Africans, and half have connections that are capable of 4G speeds. It has been nearly five years since the cost of utilizing the internet and portable devices has been reduced by almost half.
iGaming sector investors engaged in the area see a bright picture: a growing populous with expanding disposable income and affordable high-speed internet access, as well as a developing population with increasing disposable income. Despite the fact that these markets aren’t totally unexplored, they aren’t completely saturated either. Even while Kenya and South Africa are unquestionably the most successful countries in the world, other giants like as Nigeria, Ghana, and Tanzania provide tempting possibilities for operators with little marketing resources. Aside from that, saturation is confined to the sports betting segment of the industry, which is the most popular form of online gambling in Africa. It is as a result of this that Nigerian online crypto casinos have been unable to establish traction in the country owing to a history of poor internet service and expensive data prices. Because of the aforementioned technological advancements, as well as operators’ growing recognition of the importance of including lightweight, mobile-friendly games that are specifically designed to work around the limitations currently in place, the segment is expected to continue to grow steadily in the future.
Despite the fact that they are supported by foreign investors, the most prominent gaming companies in Africa are presently based in the country where they are established. It is important to understand that gambling products, like any other service, must be customized to meet the requirements of the local market in order to be successful. Adapting not just the style and substance of marketing materials, but also the product itself is necessary, especially when the competition increases in strength and number of competitors.
We’ve previously spoken about the necessity for casino games that are tailored to the infrastructure limitations of African markets, and sportsbooks are no exception. It’s natural that countries with a varied sports history would have gamblers with a wide range of betting preferences, as well. In South Africa, for example, bookies must prioritize rugby and cricket matches, while in Nigeria, football matches must take priority over all other sports events. The most successful method to improve client acquisition and retention is likely to be to provide competitive odds on the events that matter most to local audiences. This is especially true in countries where knowledgeable bettors are eager to check out the finest deals available, like Nigeria or Kenya.
Before entering the African market, it is important to consider the current state of regulatory procedures in the region in which you will be operating. Only a few of countries, mainly in the continent’s northern hemisphere, have outright prohibitions on gaming, and only a handful of them have comprehensive legislation in place. Fortunately, this is expected to improve in the not too distant future, with widespread industry control definitely on the horizon in most of Africa. Because of technological advancements, it is becoming more impossible to enforce a blanket ban.
Player migration from physical to online gaming venues as a consequence of national lockdowns has exacerbated the issue, as has the influx of new players. Nonetheless, local officials are driven by the necessity to monitor the financial flows connected with the industry: because of the region’s specific features, authorities are especially worried about the possibility of money laundering and terrorist financing. Regulatory frameworks based on globally accepted public practice, but customized to each individual local jurisdiction, could be expected in the future, leading to a fragmented market.