info.afrindex.com
China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
Image from The Herald
Africa's internet economy has the potential to reach 5,2 percent of the continent's gross domestic product(GDP) by 2025, contributing nearly USS180 billion to its economy, according to a report from Google and the International Finance Corporation (IFC).
The report titled e-Conomy Africa 2020, pointed out that the internet economy in Africa is bound to seeexponential growth as a growing urban and mobile population brings tremendous potential to the
economy.
Specifically, Google and IFC estimate that internet penetration is 40 percent today and a 10 percentincrease in mobile lnternet penetration can increase GDP per capita by 2.5 percent in Africa, comparedwith 2 percent globally.
“Increasing lnternet penetration to 75 percent has the potential to create 44 million new jobs. Theprojected potential contribution could reach USS712 billion by 2050 the report added.
Analysing the report, the lnterim managing director, executive vice president and chief operating oficer ofIFC, Stephanie von Friedeburg, said: “The digital economy can and should change the course of Africa's history.
This is an opportune moment to tap into the power ofthe continent tech startups for much-neededsolutions to increase access to education, healthcare, and finance, as well as ensure a more resilientrecovery, making Africa a world leader in digital innovation and beyond.
“Digital startups in Africa are driving innovation in fast-growing sectors, including Fintech, Healthtech,media and entertainment, e-commerce, e-mobility, and e-logistics, contributing to Africa's growing
internet gross domestic product (iGDP), defined as the internet's contribution to the GDp” he addedGoogle Africa Director, Nitin Gajria, said: "“Google and IFC have created this report to highlight the role thedigital startup sector is playing and other factors to drive the continent's growth in order to showcase andsupport the opportunities the continent presents.Some other key findings from the 2020 report.
