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AI, 5G and gaming power Africa’s new media economy

Posted on October 23, 2025
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AI, 5G and gaming power Africa's new media economySouth Africa, Kenya and Nigeria’s entertainment and media (E&M) industries are surpassing some global growth trends, with digital innovation, mobile-first audiences and the rapid integration of generative AI seen as driving the future of media in the countries.

According to PwC’s latest Africa Entertainment and Media Outlook – Perspectives Report 2025–2029 – growth in E&M on the continent will largely outpace the global 2024-2029 compound annual growth rate (CAGR) of 3.7%.

Charles Stuart, director at PwC, said at the launch of the report in Johannesburg on Wednesday that South Africa is the largest E&M market in Africa. It is expected to reach US$17.4-billion (R321.2-billion) by 2029, but will experience slower growth at 3.5% CAGR.

This signals a structural shift towards scalable digital platforms, youth-driven engagement and new monetisation models

Nigeria remains the fastest-growing E&M market in Africa, with a 7.2% CAGR over the period and an industry market value of $5.8-billion by 2029. Kenya is expected to grow at a 5.2% CAGR to a market size of $5.2-billion by 2029.

Stuart said that despite global economic pressures, including US tariffs on imports, Africa’s leading E&M markets are showing resilience and momentum. Nigeria posted 11.2% growth in 2024, followed by Kenya at 7.1% and South Africa at 6.2%.

“These figures reflect more than recovery – they signal a structural shift towards scalable digital platforms, youth-driven engagement and new monetisation models,” said Stuart.

Generative artificial intelligence is transforming local storytelling as South African media houses adopt it to enhance production efficiency and deliver more personalised content.

Digital advertising

He said that across Africa, start-ups are harnessing AI to produce content in local languages, broaden accessibility and amplify regional perspectives.

The move in advertising towards digital formats continues. In 2029, Nigeria is expected to reach 84% digital ad spend – surpassing the global benchmark of 80%.

“Nigeria’s E&M growth is driven by a predominantly young population and rapid digital innovation that’s reshaping how content is created, consumed and monetised,” Udochi Muogilim, technology, media and telecommunications leader for PwC Nigeria, said in a statement.

Read: Internet to drive SA media, entertainment sector growth

South Africa and Kenya follow at 74% and 64%, respectively.

Stuart said that retail display and paid search are among the fastest-growing segments, driven by performance-based strategies and mobile-first consumer behaviour.

Connectivity is the cornerstone for growth in the sector, he said.

mobile userSouth African 5G subscriber numbers are increasing and are poised to overtake 4G subscriptions shortly after the forecast period. In South Africa, video accounts for 76% of total data usage, while Nigeria now has over 107 million internet users. Kenya’s mobile connections already exceed its population, underscoring the mobile-first nature of its digital economy.

Stable internet connectivity and the roll-out of 5G are fuelling growth in digital segments like streaming, gaming, and mobile media.

Read: Radio is surviving – but not thriving – in a digital world

Stuart said gaming and e-sports are emerging as major growth areas with Nigerian gaming and e-sports revenue, at a CAGR of 7.6%, expected to surpass traditional television revenue by 2028.

“This tipping point highlights the digital shift being driven by mobile platforms and immersive technologies,” he said.  – © 2025 NewsCentral Media

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