State of the African digital economy

Africa’s digital economy is on a growing trend. This is a result of a combination of factors, from improved internet access and the presence of vibrant startup ecosystems to improvements in policy frameworks. But there are disparities between countries. For instance, when it comes to e-commerce readiness, South Africa scored 56.5 points in UNCTAD’s 2020 index, compared to only 5.6 for Niger.

In 2012, Africa’s digital economy was estimated at roughly 1.1%, or US$30 billion of its GDP.¹ In 2020, estimates indicated a contribution of 4.5%, or US$115 billion. This growth is expected to continue in the coming years. A 2020 study by Google and the International Finance Corporation (IFC) found that the digital economy could contribute US$180 billion (5.2%) to the continent’s GDP by 2025, and US$712 (8.5%) billion by 2050 (Table 12). Reasons behind this estimated growth include better quality internet connectivity and improved access, vibrant startup ecosystems, growing tech talent pools, and improvements in policy and regulatory frameworks (including the launch of the African Continental Free Trade Area).