While widely successful and full of opportunity, the games market is a competitive industry. From rising trends to growing markets, it’s important to understand how to position your business for growth. One region that has become a hotspot of activity in the games and ecommerce industries is Africa.

Africa’s games market: An overview

In recent years, Africa has witnessed a surge in internet penetration, particularly in cities. This widespread connectivity has paved the way for game developers and gaming services across the continent. Additionally, millions of gamers in Africa engage with games on mobile platforms, making the region a hub of opportunity for game developers.

• Gaming market size. The Africa gaming market size is expected to reach more than $2 billion in 2024 and reach more than $3 billion in 2029.
• Major market gamers. South Africa has the highest saturation of gamers across Africa, with 24 million people (almost half of its population) who play. Other major markets include Egypt, Ethiopia, Ghana, Kenya, Nigeria, and Uganda.
• Mobile is key. With over 680 million mobile users and a gaming population that primarily plays on mobile devices, Africa is the fastest-growing region for mobile game downloads.
• Youthful population. Approximately 60% of Africa's 1.4 billion people are under the age of 18. These demographics contribute to Africa's growing buying power, including its consumption of video games. And with the world’s youngest median age of 19 years old, this young, tech-savvy population offers a huge consumer base as well as a source of creativity and talent.

A region of opportunities

As Africa's games industry continues to grow, the region opens doors for developers and studios looking to tap into the market. Fueled by a combination of rising revenue, a booming gamer base, and innovative payment solutions, Africa is a region of robust ecommerce activity.

• High revenue potential. In 2021, South Africa generated $290 million (the most total annual gaming revenue in Africa) followed by Nigeria, Ghana, Kenya, and Ethiopia. In 2022, games sold in Africa generated over $860 million in revenue.
• A growing player base. A new generation of gamers is emerging, fueled by increased access to affordable technology and gaming facilities, particularly among middle-class families. This translates to a larger market for game developers and an opportunity for new revenue streams.
• Alternative payment methods. The success of alternative payment methods (APMs) in Africa is opening new avenues for streamlined transactions. Improved internet penetration and locally developed fintech solutions are driving this trend. This makes it easier for gamers to pay for games and in-app purchases, removing a major barrier to entry for developers.
• Nurturing growth. Governments in Africa are recognizing the potential of the gaming industry and are implementing measures to support its growth. This includes robust security measures to ensure safe digital transactions.

Payments in Africa, now added to Xsolla Pay Station

Africa's booming digital economy holds a lot of potential and connects 1 billion people to the global market. But unlocking this region requires a key focus: payments. For international businesses, navigating Africa's fragmented payments landscape can be complex and lead to difficulty for companies and consumers. Many users in Africa seek workarounds to access international services like streaming or gaming platforms that lack local payment options. To break down these barriers and connect you to Africa's thriving games market, Xsolla has simplified the payment experience for our partners with five new payment options: New local payments: 1Voucher. A payment method in South Africa that enables you to pay and top up online safely and easily without the use of a bank account. 1Voucher has a broad partner network where you can pay online or in-store for Wi-Fi providers, travel, ticketing, online gaming, VOIP services, and more, using a 16-digit PIN. FawryPay. A leading provider of e-payments in Egypt, FawryPay offers financial services through more than 225,000 locations and spearheads accessible, reliable, and high-value propositions for millions of banked and unbanked users. New mobile wallets: Airtel. An e-wallet in 14 countries across Africa, including Kenya, Ghana, and Uganda, that allows customers to make online and offline payments, pay bills, top up their mobile phones, and make and receive money transfers. Customers can load their wallets via payment cards or connect their mobile numbers to bank accounts. MTN Mobile Money. A mobile banking and payment service in Africa and the Middle East, MTN is a secure electronic service that enables consumers to store funds, send and receive money, make payments, and do a number of other transactions via their mobile device. Vodafone. A contactless payment option across Africa that enables the use of mobile money, Vodafone allows consumers to make domestic money transfers to other Vodafone numbers, top up mobile phones and make contactless PayPal payments using a smartphone. ADVANTAGES AND BENEFITS By enabling these payment methods and mobile wallets on Xsolla Pay Station, you can open doors to a bigger player base in Africa, boost your game’s growth, and add new revenue streams. You can also:

• Grow your reach and market share in Africa by giving millions of gamers an opportunity to play your game.
• Create a seamless and secure checkout experience for your gamers and boost your conversions and transaction success as a result.
• Drive revenue growth by tapping into a region with young, active gamers who are contributing to a gaming economy that is projected to surpass $1 billion in revenue in 2024.
• With mobile usage dominating the market, you can offer these new payment options on any device and process transactions locally.

Unlock global growth with Xsolla

At Xsolla, we’re dedicated to accelerating global game commerce and revolutionizing the payment experience. As a merchant of record with decades of game industry expertise, we’re here to be your all-in-one payment and business partner. From fraud and security to taxes and compliance, our goal is to find new ways for your business to thrive on a global scale. Whether you're ready to take the first step or the next step in your game development, get in touch with an Xsolla expert to learn how you can expand your payments to new markets and grow your gaming business.