The outsized potential of the cultural and creative industries in Africa

Executive summary

While Africa has been historically underrepresented in the cultural and creative industries (CCIs) on the global stage, these industries are now undergoing a renaissance on the continent and attracting global attention. Improving technological infrastructure is allowing more African and global consumers to access CCI products via new channels. This comes at a time when Africa’s rapidly growing middle class population represents an expanding market for firms, while international consumers are becoming increasingly aware of African creative goods. Digital payment platforms also are diversifying the ways African consumers can pay for CCI goods. These developments have opened opportunities for new sectors of the CCIs as consumers shift from purchasing physical to digital goods. Advertising revenues have also become an important driver of growth in the entertainment and media (E&M) sector of the CCIs on the continent.

Growing the CCIs offers unique advantages to emerging markets, particularly those in Africa. There are fewer barriers to entry in the CCIs, and the sector tends to employ a younger and more diverse workforce, providing the potential to create jobs and promote social equity. Likewise, the CCIs can promote the growth of other sectors, including manufacturing and education, wherein technology and the arts can provide new, nontraditional ways of learning and training, helping to address structural deficits. Despite limited resources, many African governments have recognized the benefits of the CCIs and established cultural ministries and national strategies to promote the growth of these industries.

International media companies are turning their attention to Africa as a lucrative opportunity for growth. Vivendi is already a big player (Goodfellow 2024) and streaming companies like Netflix are making inroads (Kazeem 2020). However, domestic media companies like South Africa’s Naspers already have a powerful foothold in the market and can be key partners for international firms looking to better understand the African consumer (Naspers, 2020). Technology investors are also helping to enhance the infrastructure that supports the CCIs. Going forward, this advanced infrastructure can promote the animation, gaming, and visual effects sectors (Hruby 2018).

While there is growth in the CCIs throughout the continent, South Africa and Nigeria are two markets that have outsized potential in the near term. South Africa’s visual arts and design, cultural festivals, and television and film industries are all areas of potential growth. Nigeria’s fashion and film industries also have incredible potential, with the rising prominence of Nollywood bringing international attention and acclaim(PwC, 2019).

The African CCI sector faces challenges like piracy (WT Research 2020), continental and global shocks such as epidemics and pandemics, and ongoing global and local conflicts. However, these risks can be mitigated through investments in digital distribution channels, business-friendly policies like stronger IP protections, and greater financial support for the CCIs.

Ultimately, incentivizing and growing the CCIs in Africa provides an opportunity for businesses, governments, and private citizens alike to promote socioeconomic development and reap high returns.

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