Africa: Google, IFC Estimate U.S.$180 Billion Growth in Africa’s Internet Economy By 2025

A new report, known as e-Conomy Africa 2020 Report, released yesterday by Google and the International Finance Corporation (IFC) has estimated that Africa’s internet economy has the potential to reach 5.2 per cent of the continent gross domestic product (GDP) by 2025, contributing nearly $180 billion to its economy.

The projected potential contribution could reach $712 billion by 2050, the report added.

According to the report, which was launched at a virtual conference across African countries, including Nigeria, “Driving this growth is a combination of increased access to faster and better quality internet connectivity, a rapidly expanding urban population, a growing tech talent pool, a vibrant startup ecosystem, and Africa’s commitment to creating the world’s largest single market under the African Continental Free Trade Area.”

Currently, Africa is home to 700,000 developers, and venture capital funding for startups have increased year-on-year for the past five years with a record of $2.02 billion in equity funding raised in 2019, according to Partech Ventures Africa.

Analysing 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 tech startups for much-needed solutions to increase access to education, healthcare, and finance, as well as ensure a more resilient recovery, making Africa a world leader in digital innovation and beyond.”