Nigeria leads mobile app market growth in Africa as use of gaming apps surge 44% from Q1 2020


It’s hard not to miss the impact of the pandemic on the global app market. In the first quarter and first half of this year, consumer spending in mobile apps hit new records of $32 billion and $64.9 billion, respectively. respectively.

In Africa, it can be difficult to give exact numbers on consumer spending as the continent is rarely mentioned in global app market reports. Still, there are other metrics worth looking at, and a New report good from appsflyer The collaboration with Google has some important insights into how the African app market has fared since the pandemic broke out last year.

The report tracked mobile app activities in three of Africa’s largest app markets (Kenya, Nigeria and South Africa) between Q1 2020 and Q1 2021..

From the first half of 2020 to the first half of 2021, the African mobile app industry (which is mainly Android) grew by 41% In complete to be installed. this was analyzed With 6,000 apps and 2 billion installs in three markets. Nigeria recorded the highest growth with a growth of 43%; South Africa market up 37% and Kenya 29%.

lockdown number

On March 22, 2020, Rwanda imposed Africa’s first lockdown. After that, Other countries followed; (included in the report) Kenya (March 25), South Africa (March 27) and Nigeria (March 30).

As more people spent time at home from the second quarter of 2020, app installs in all three countries increased by 20%. South Africans were the fastest to pick up their phones as the lockdown hit, up 17% from the previous quarter.

On the other end, Nigerian and Kenyan registered growth of 2% and 9% respectively. The report attributes the inequality to the different levels of sanctions faced by each country; South Africa experienced the harshest and most frequent.

As per the report, gaming apps showed strong performance between Q1 and Q2 2020. This segment experienced a 50% increase compared to an 8% increase in pulled nongaming apps. This followed a global trend where gaming apps Reaches record high in the second quarter of 2020, over 14 billion downloads globally.

In-app purchase revenue and approximately year-over-year growth

According to AppsFlyer, it saw the biggest trend in in-app purchase revenue. In Q3 2020, in-app purchases revenue numbers grew by 136% compared to Q2 2020, and 33% of 2020 total revenue, “highlighting” In college How much African consumers were spending within apps, from retail purchases to gaming upgrades

In-app purchase revenue among South African consumers increased by 213%, while Nigerian and Kenyan consumers registered growth of 141% and 74%, respectively.

On the advertising front and on an almost year-over-year basis, in-app ad revenue also increased Enough as africans were glued more than ever for their smartphones. According to the report, in-app advertising revenue grew by 167% between the second quarter of 2020 and the first quarter of 2021.

For gaming and non-gaming apps that was highlighted Between the first two quarters, they both grew by 44% and 40% respectively in Q1 2021 compared to the second quarter of 2020.

Fintech and Super Apps

Over the past five years, fintech has dominated VC investments in African startups. It is a no-brainer why there is such an affinity for the region. Fintech creates enormous value for Africa’s mobile-first population, which consists of the unbanked, underbanked and a large segment of people with no banking access.. That’s why all but one of the continent’s billion-dollar startups are fintech.

According to a Disrupted Africa, African fintechs grew 89.4% between 2017 and 2021 report good. Now, there are over 570 startups on the continent. Many fintechs are mobile based, That’s why Shows the number of fintech apps used daily by Africans. Consumers in South Africa and Nigeria saw a year-on-year increase of 116% and 60% in finance app installs, respectively.

AppsFlyer says that like fintech apps, super apps are on the rise too. These “all-in-one” apps provide users with a wide range of functions such as banking, messaging, shopping and ride-hailing. The report states that their rise, partly due to device limitations on the continent, is due to the same circumstances that have led to the rise in fintech apps: systemic underbanking.

“Super Apps remove some of the barriers these users face, as well as provide a level of customer insight and experience that traditional banks cannot,“The report stated.

Daniel Junowicz, RVP EMEA and Strategic Projects for AppsFlyer, commenting on the trends highlighted in the report, said, “…the mobile app space in Africa is thriving despite last year’s turmoil. Installs are on the rise. and consumers are spending more money than ever before, highlighting how important mobile can be for businesses to drive revenue.”

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