According to a recent PwC industry report, Africa’s entertainment and media (E&M) sector is set for significant expansion over the next five years, driven by the growing availability of internet packages and investments in reliable mobile and fixed infrastructure.
Nana Madikane, the leader of PwC Africa’s Technology, Media and Telecommunications division, discussed these insights from PwC’s recently released report, the Africa Entertainment and Media Outlook 2024–2028. He emphasised that businesses must embrace digital transformation as internet access improves, focusing on social media and mobile platforms to engage Africa’s youth through personalised and data-driven advertising.
Madikane noted that this digital shift would increase content production in OTT (over-the-top) services and music and highlight the importance of localisation and cultural representation to resonate with both local and international audiences. The growing interest from global players in Africa’s market further showcases its potential. Additionally, the wider adoption of artificial intelligence tools is expected to enhance content production, delivery, and marketing, significantly impacting the global E&M landscape, particularly in Africa.
Amidst ongoing global macroeconomic challenges, the E&M markets in South Africa, Nigeria, and Kenya are exhibiting resilience. These three leading African markets are experiencing revenue growth that surpasses the global average, projected at a compound annual growth rate (CAGR) of 3.9% through 2028.
The report, themed “Resilience and Reinvention,” explores the factors influencing E&M sector growth across the continent and highlights significant trends expected to shape the market in the coming years.
Boasting the most developed E&M market in the region, South Africa is anticipated to grow at a CAGR of 4.2% through 2028. While most sectors will witness growth—except for print media—OTT streaming services and internet advertising are projected to experience the highest increases, thanks to stable internet connectivity and the adoption of 5G technology. Additionally, the gaming and esports segments present promising growth opportunities.
As one of the fastest-growing E&M markets globally, Nigeria is poised for a remarkable 8.6% CAGR. Key growth segments by 2028 will include internet advertising, video gaming and esports, OTT services, and music. Internet advertising revenue in Nigeria is predicted to more than double from 2023 to 2028.
Although it is the smallest of the three markets, Kenya’s E&M industry is expected to grow at a 5.2% CAGR during the forecast period. Internet advertising and OTT services are leading this growth, making Kenya the fastest-growing internet advertising market globally, with a projected CAGR of 17.4% through 2028.
Alinah Motaung, PwC Africa’s Entertainment and Media leader, remarked that E&M revenue is expected to increase in all three markets at rates exceeding the global average. In South Africa, E&M revenue is projected to rise from $16.1 billion to $19.8 billion. In Nigeria, the market is expected to grow from $9.0 billion in 2023 to $13.6 billion by 2028. Kenya will see revenue growth from $3.8 billion to an estimated $4.8 billion by the end of the forecast period, reflecting a broader narrative of resilience and recovery in African markets following the pandemic.
Charles Stuart, PwC South Africa’s Entertainment and Media partner, stated that while different E&M segments may grow at varying rates, the overall industry in Africa is positioned for expansion, thanks to technological advancements, improved connectivity, and heightened digital engagement.
South Africa will maintain its status as the regional leader in market scale, yet Nigeria and Kenya are forecasted to grow faster due to their younger populations and broader economic development.
Live events, gaming, and OTT platforms are thriving, with South Africa drawing international artists such as Imagine Dragons and Sting. Nigeria and Kenya have surpassed pre-pandemic ticket sales, while South Africa’s 2024 Calabash festival will feature renowned acts like Maroon 5 and Keane.
South Africa is experiencing a 33.6% increase in box office revenue, primarily from Hollywood films, with local productions struggling to gain traction. However, the sector will return to pre-pandemic revenue levels by 2027.
Overall, the E&M sector in Africa is poised for growth, indicating a bright future as markets adapt and evolve in the post-Covid era.
