According to data collected by numerous research institutes, there is a direct link between enhanced internet penetration and economic prosperity in multiple sectors. PricewaterhouseCoopers recently found that revenues from the entertainment and media segments in Kenya will exceed $3.1 billion within five years because of rising internet penetration.
According to the Ventures Africa website, the PricewaterhouseCoopersHouse report read, “Kenya recorded $1.7 billion (Sh151.74 billion) in entertainment and media revenues in 2013, and this is forecast to rise to $3.1 billion (Sh276.7 billion) in 2018. Once again, it is internet access that is driving growth. Television and radio will account for combined $1 billion (Sh89.26 billion) plus of revenues at the end of the forecast period.’
“Increased internet access will generate more consumer spend than any other media product or service in the next five years in the South African entertainment and media industry. Nigeria’s entertainment and media revenues represent one of the fastest growth rates in the world,’ the report also read.
The internet has become a driving force of productivity for Africa, so much so that McKinsey & Company have placed Africa’s iGDP – the internet’s contribution to gross domestic product (GDP) – at $18 billion, and it is projected to grow to $300 billion by 2025. A number of submarine cables laid between 2009 and 2012 including Seacom, East African Submarine Cable System (EASSY) and the West African Cable System (WACS) increased internet penetration across Africa and now according to M&C Saatchi Mobile, more Africans have access to a mobile phone than to drinking water.
With these fundamentals in place and more in progress, penetration levels will continue to increase, translating into economic returns and development.
