Can Video Games and eSports Overtake Traditional Entertainment in Africa’s Revenue Race?

By 2028, Nigeria’s video games market will generate $1.3 billion in revenue, representing a compound annual growth rate (CAGR) of 12.7 per cent from 2024 to 2028. This feat will place the market among the fastest-growing in the global video game industry. eSports in Africa will follow a similar path with an upward growth trajectory, translating to a CAGR of 25.2 per cent, solidifying it as a $20 million market, writes Iyke Bede

Traditional entertainment forms, such as film and television, currently dominate Africa’s entertainment sector, accounting for about 40 to 60 per cent of its total revenue. This is no surprise, given the established presence of these industries. However, compared to the global contribution of eSports and video games, it raises the question: Can these newer sectors eventually rival or surpass traditional entertainment in Africa’s revenue race, as they have in other parts of the world?

Put simply, Africa’s economies and their drivers do not always align with global standards due to the varying role technology plays in advancing industries and revenue generation. The gaming ecosystem in Africa is still in its early stages, grappling with issues like organisation, financing, infrastructure, and adoption. Still, it remains resilient in the face of these adversities, contributing close to 10 per cent to the entertainment industry.

A newly published study by PwC, Africa Entertainment and Media Outlook 2024–2028, reveals that the terrain might become more promising in the coming years as the eSports and gaming culture continues to expand into the mainstream.

With the rapid adoption of 4G and 5G technology, the growth of eSports competitions and tournaments, investment in local infrastructure, and talent development, backed by a teeming youth population, video games in Africa are set to witness an impressive growth trajectory, with Nigeria and South Africa—where 50 per cent of gamers are between the ages of 15 and 34—taking a continental lead.

By 2028, Nigeria’s video games market will generate $1.3 billion in revenue, representing a compound annual growth rate (CAGR) of 12.7 per cent from 2024 to 2028. This feat will place the market among the fastest-growing in the global video game industry. eSports in Africa will follow a similar path with an upward growth trajectory, translating to a CAGR of 25.2 per cent, solidifying it as a $20 million market.

With mobile gaming at the forefront of shaping the gaming industry in Africa, amassing a significant portion of the video games industry, it will account for over $1 billion in Nigeria alone by 2028. Other markets, like Kenya, will also see a surge in the adoption of mobile eSports tournaments, encouraged by increased mobile data availability, smartphone penetration, and accessibility to gaming software.

Road to eSports and video games dominance

Inarguably, the African market has hit impressive milestones to position itself for expansion, albeit dwarfed by markets in Asia, Europe, and the Americas. Already, events such as the ESL African Championship and Gamr X’s impact have rippled to international shores, attracting sponsorship from brands for local eSports tournaments.

In Nigeria, tournaments like the Eko Games and the Nigeria Pro League have contributed to the ecosystem’s development. In other regions, for instance, South Africa, Kenya, Egypt, and Morocco are no longer new to hosting international eSports competitions.

Streaming platforms like Twitch, YouTube Gaming, and local services are expected to increase in popularity across the continent. Africa is seeing a surge in streamers and viewers, with South Africa leading in Twitch subscriptions and viewing hours. This has created an opportunity for eSports competitors, influencers, and brands to monetise content and grow their audiences as more viewers engage with live streams.

With these revenue-generating activities gaining momentum, governments and private sectors across the continent have continued to recognise the potential of gaming and eSports, although support has been largely inconsistent. While some countries, like South Africa and Egypt, have established eSports federations and regulatory frameworks, others are still in the early stages of recognising gaming as a viable industry. Private sector investments are increasing, with telecom companies, fintech firms, and entertainment brands sponsoring tournaments and gaming hubs. However, challenges such as limited infrastructure, high data costs, and regulatory uncertainty continue to slow down the industry’s full potential.

Looking ahead, stakeholders across the continent—from governments and private investors to content creators—must collaborate more effectively to ensure sustained growth. Expanding regulatory frameworks, supporting infrastructure, and addressing high data costs will be key factors in unlocking the full potential of the gaming industry. 

As the sector continues to evolve, Africa’s video games and eSports industries will face their fair share of challenges. But just like other rapidly growing sectors, these obstacles will help to shape them into standout industries with the potential to rival global markets. With the precedence of this sector’s global domination, Africa just needs a little more time to overcome its teething pains.