Africa and the internet penetration.
The internet will add over $300 billion to the African economy by 2025 as its number of internet users hit 600 million. This was the conclusion of a report by McKinsey & Co. which looks at the potential of the internet in the continent. The report, “Lions go digital: The Internet’s transformative potential in Africa,” is filled with interesting data points from 14 nations that make up 90% of Africa’s GDP.
Some of the takeaways are;
The Internet in Africa today:
16% internet penetration
167 million internet users
67 million smartphones
50% of urban residents are online (ranges from 43-72%)
51.6 million Facebook users
$18 billion internet contribution to GDP
10-53% of government departments online
The Internet’s potential in Africa by 2025:
50% internet penetration
600 million internet users
360 million smartphones
$75 billion in annual e-commerce sales
$300 billion internet contribution to GDP
Six key sectors that will benefit from the internet:
Finance: services will reach the unbanked – 60% of Africans could use banking services by 2025 and mobile wallets will be used daily by many
Education: teacher training will improve and educational content will be accessed on affordable tables or e-books
Health: remote healthcare will be more common and more affordable – tech benefits to this sector could reach over $100 billion by 2025
Retail: 10% of retail sales in the largest economies could come from e-commerce ($75 billion annually)
Agriculture: more farmers will have access to information on crop management, finance, and market prices
Government: transparency and e-services will contribute to major productivity gains and should also build trust.