According to the latest PWC Entertainment and Media Report released today, Africa’s entertainment and media (E&M) industry is set to outpace global E&M growth. Released today amid economic headwinds, the report spotlights Nigeria, South Africa, and Kenya as resilient powerhouses, with digital advertising, streaming, and gaming reshaping how content is created, consumed, and monetized. The sector’s projected compound annual growth rate (CAGR) will eclipse the global 3.7% benchmark, driven by youth engagement, enhanced connectivity, and generative AI’s role in local storytelling.
“Africa’s leading E&M markets are showing resilience and momentum,” said Charles Stuart, PwC’s Africa E&M Leader, during the launch presentation in Johannesburg. “These figures reflect more than recovery—they signal a structural shift toward scalable digital platforms, youth-driven engagement, and new monetization models.”
Robust Growth Projections Amid Global Pressures
The report forecasts the African E&M market—focusing on its three largest hubs—to expand significantly by 2029. Nigeria leads as the continent’s fastest-growing economy, with a 7.2% CAGR propelling its market value to US$5.8 billion. This follows a stellar 11.2% growth in 2024, fueled by a young demographic and rapid digital adoption. “Nigeria’s E&M growth is driven by a predominantly young population and rapid digital innovation,” noted Udochi Muogilim, PwC Nigeria’s Technology, Media, and Telecommunications Leader.
South Africa, the region’s biggest market at US$17.4 billion (R321.2 billion) by 2029, will grow more steadily at 3.5% CAGR, adding R51 billion over the forecast period. Its 2024 performance hit 6.2%, bolstered by 5G rollout—subscriber numbers are expected to surpass 4G post-2029—and video dominating 76% of data usage.
Kenya rounds out the trio with a 5.2% CAGR to US$5.2 billion, including 7.1% growth in 2024. Its mobile connections already exceed its population, underscoring a “mobile-first” digital economy. Kenya’s internet advertising market steals the spotlight, surging at a global-leading 16% CAGR, outstripping even high-flyers like India and Indonesia.
Globally, the E&M sector will balloon from US$2.9 trillion in 2024 to US$3.5 trillion by 2029, with advertising revenues overtaking consumer spending for the first time in 2023–24 and widening to a US$300 billion lead by 2029. Africa’s markets are bucking trade tensions and privacy concerns, with digital ad spend projected to hit 84% of total advertising spend in Nigeria, 74% in South Africa, and 64% in Kenya by 2029, continuing the dominance of digital advertising.
Digital Advertising and Streaming: The New Revenue Engines
Connectivity is the linchpin. Nigeria boasts over 107 million internet users, while South Africa’s 5G expansion promises faster, more reliable access. This sets the foundation for a digital ad exodus: retail display and paid search are exploding, with South Africa’s retail display at 32.1% CAGR and retail paid search at 27.7%. Globally, e-commerce giants like Amazon (US$50 billion in ad revenue) exemplify the trend, where first-party data enables precise targeting.
Over-the-top (OTT) streaming is another bright spot, adding 1.4 million South African subscribers to reach 5.4 million by 2029 (6% CAGR). Ad-supported video-on-demand (AVOD) overtakes transactional models, hitting R1 billion in revenue. Globally, OTT subscriptions plus transactional VOD will eclipse traditional pay-TV by 2037. In Kenya, growth is projected to hit 18.7%, while MultiChoice’s Showmax bundling—now including financial and solar services, highlights hybrid models blending legacy TV with digital perks.
Traditional TV advertising spend is set to remain flat at around R28–38 billion in South Africa (4.13% CAGR for broadcast), buoyed by live events like sports but pressured by dwindling viewer bases. Pay-TV penetration dips marginally, yet acquisitions like Canal+’s stake in MultiChoice signal consolidation for potential scale built on new pricing models and content availability.
Traditional print media is set to fade further into oblivion, however the bright spot for print is the resilience of books which is set to continue to grow with single digit growth through to 2029
AI, Gaming, and Emerging Frontiers
Generative AI emerges as a “next frontier,” streamlining production and personalizing content in South Africa while enabling local-language startups across Africa. “AI is beginning to shape local storytelling,” Stuart emphasized.
Gaming and esports shine brightest, with South Africa’s market climbing from R7.3 billion to R10.3 billion (7.1% CAGR). Casual and social gaming such as think Candy Crush on mobiles will drive growth, with in-app advertising poised to overtake in-app purchases globally by 2027. Nigeria’s gaming revenue (7.6% CAGR) will surpass traditional TV by 2028, while Kenya’s casual gaming benefits from smartphone proliferation and growing 4G penetration.
Non-digital segments do however show resilience with examples such as live entertainment (e.g., Las Vegas Sphere’s US$367 million) and cinemas globally have rebounded post-strikes and COVID. Globally, esports consumer spend grows 10.4% to US$32 billion, though mixed reality (AR/VR/metaverse) lags at limited scale do to scaling issues hindered by high cost barriers.
Challenges and Calls to Action
PwC covers 11 revenue segments (e.g., internet ads, video games) plus non-revenue metrics like data consumption, now including AVOD breakdowns and has also included Mauritius as a new entrant to the report. Egypt falls under Middle East/North Africa reporting, while past inclusions like Ghana and Tanzania were data-limited.
Headwinds for the global E&M industry are projected to persist, with global tariffs uncertainties potentially curbing foreign productions in countries such as South Africa that has had a healthy income from foreign film production in the region, with tax incentives helping to secure regional film productions. Other regions in Africa could also face diminishing film productions should US film studios face tariff impositions on films produced on the continent.
“Africa’s E&M sector is redefining itself,” concluded Nana Madikane, PwC’s Africa TMT Leader. “We’re seeing a convergence of technology, creativity, and consumer demand unlocking new opportunities.”
Stakeholders—creators, investors, regulators—must invest in infrastructure, local content, and inclusive ecosystems. As Stuart urged, “Move from insight to action.” With Nigeria’s dynamism, South Africa’s maturity, and Kenya’s speed, Africa’s E&M could lead global innovation—if scaled wisely.
