• Willow Oak Advisory

Africa’s digital economy may see more than sixfold growth by 2050

The African internet economy could see massive expansion in the near future, with its contribution to the continent’s gross domestic product (GDP) surpassing $700 billion in three decades.

(RT) According to a recent e-Conomy Africa 2020 report, released by Google and the International Finance Corporation (IFC), the potential of the African internet economy, which includes such sectors as e-commerce, e-logistics, edtech, entertainment, fintech, and healthtech among others, “is one of the largest overlooked investment opportunities of the past decade.” 

The analysis shows that the sector may reach $180 billion by 2025 and account for 5.2 percent of the continent’s GDP compared to around $115 billion and 4.5 percent expected this year. By 2050, the projected potential contribution could reach $712 billion, equivalent to 8.5 percent of the continent’s GDP. 

This means Africa’s digital economy, driven by growing access to faster and better quality internet connectivity, a rapidly expanding urban population and digital startup ecosystem as well a growing tech talent pool, will expand by more than sixfold in 30 years. It will also be nearly 25 times bigger than it was in 2012, when it was estimated at roughly $30 billion.

The coronavirus pandemic is not expected to affect the development of the sector as so far the African internet economy has proven broadly resilient, the report stated. It noted, however, that the continent’s digital economy will be transformed in the aftermath of the Covid-19 outbreak, but “exactly what this transformation will look like remains to be seen.”

63/66 Hatton Garden

Fifth Floor, Suite 23



United Kingdom

+44 (0) 203 633 6961

  • LinkedIn - White Circle
  • Twitter - White Circle
  • Facebook - White Circle

​This website should not be regarded as an offer or solicitation to conduct investment business. Past performance of investments is not necessarily indicative of future performance. The value of investments may fall as well as rise and the income from investments may fluctuate and is not guaranteed. Clients may not recover the amount invested. The investments mentioned on this website are not suitable for all types of investors. Investment advice should always be sought from a qualified investment adviser before any investment is made.

Trading and investing can be a challenging and potentially profitable opportunity for investors. However, before deciding to participate in the market, you should carefully consider your investment objectives, level of experience, and risk appetite. Most importantly, do not invest money you cannot afford to lose.

There is considerable exposure to risk in any investment transaction. Any transaction involving securities involves risks including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price or liquidity of a currency. Investments in speculation may also be susceptible to sharp rises and falls as the relevant market values fluctuate. The leveraged possibility of trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. Not only may investors get back less than they invested, but in the case of higher risk strategies, investors may lose the entirety of their investment. It is for this reason that when speculating in markets it is advisable to use only risk capital.

© Copyright 2021 Willow Oak Advisory. All Rights Reserved