A new report called e-Conomy Africa 2020, released in South Africa by Google and the International Finance Corporation (IFC), estimates that Africa’s Internet economy has the potential to reach 5.2 percent of the continent’s gross domestic product (GDP) by 2025, contributing nearly One hundred and eighty billion US dollar or two point eight trillion rand to its economy.
The projected potential contribution could reach seven hundred and twelve billion US dollar by 2050.
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 has increased year on year for the past five years, with a record $2.02bn in equity funding raised in 2019, according to Partech Ventures Africa.
“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’s tech startups for much-needed solutions to increase access to education, healthcare, and finance, and ensure a more resilient recovery, making Africa a world leader in digital innovation and beyond,” said Stephanie von Friedeburg, interim managing director, executive vice president and chief operating officer of IFC.
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