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

The pandemic’s impact on the worldwide app market has not been laborious to overlook. In the primary quarter and first half of this yr, shopper spending in mobile apps hit new records at $32 billion and $64.9 billion, respectively.

In Africa, it may be robust to name out actual numbers on shopper spending as a result of the continent will get hardly a point out in world app market experiences. Yet, different metrics are price taking a look at, and a new report from AppsFlyer in collaboration with Google has some necessary insights into how the African app market has fared for the reason that pandemic broke out final yr.

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

From the primary half of 2020 to the primary half of 2021, the African mobile app trade (which is predominantly Android) elevated by 41% in general installs. This was analyzed from 6,000 apps and a couple of billion installs in the three markets. Nigeria registered the very best growth, with a 43% rise; South Africa’s market elevated by 37% and Kenya elevated 29%.

Lockdown numbers

On March 22, 2020, Rwanda imposed Africa’s first lockdown. Subsequently, different international locations adopted; (these in the report) Kenya (March 25), South Africa (March 27), and Nigeria (March 30).

As extra individuals hung out at dwelling from Q2 2020, app installs elevated by 20% throughout the three international locations. South Africans have been the quickest to take to their telephones as the lockdowns hit with installs rising by 17% from the earlier quarter.

On the opposite hand, Nigerians and Kenyans recorded a 2% and 9% improve, respectively. The report attributes the disparity to the various ranges of restrictions every nation confronted; South Africa skilled the strictest and most frequent.

Per the report, gaming apps confirmed sturdy efficiency between Q1 and Q2 2020. The phase skilled a 50% growth in comparison with an 8% improve in nongaming apps pulled. It adopted a world development the place gaming apps surged to a record high in Q2 2020, at 14 billion downloads globally.

In-app buying income and virtually year-on-year growth

According to AppsFlyer, the most important development it observed was in in-app buying income. In Q3 2020, in-app buying income numbers grew with a staggering 136% improve in comparison with Q2 2020, and accounted for 33% of 2020’s complete income, “highlighting just how much African consumers were spending within apps, from retail purchases to gaming upgrades.”

In-app buying income amongst South African shoppers elevated by 213%, whereas Nigeria and Kenyan shoppers recorded 141% and 74% will increase, respectively.

On the promoting entrance and on an virtually year-on-year foundation, in-app promoting income additionally elevated considerably as Africans have been glued to their smartphones greater than ever. Per the report, in-app promoting income elevated 167% between Q2 2020 to Q1 2021.

For gaming and non-gaming apps, which was highlighted between the primary two quarters, they each elevated by 44% and 40% respectively in Q1 2021 in comparison with Q2 2020.

Fintech and tremendous apps

In the final 5 years, fintech has dominated VC investments in African startups. It’s a no brainer why there’s a lot affinity for the sector. Fintechs create a lot worth for Africa’s mobile-first inhabitants, with giant sections of unbanked, underbanked and banked individuals. This worth is why all however one of the continent’s billion-dollar startups are fintech.

African fintechs have grown by 89.4% between 2017 and 2021, based on a Disrupt Africa report. Now, there are greater than 570 startups on the continent. Many fintechs are mobile-based, due to this fact reflecting the quantity of fintech apps Africans use every day. Consumers in South Africa and Nigeria noticed year-on-year growth in finance app installs by 116% and 60%, respectively.

AppsFlyer says that like fintech apps, tremendous apps are on the rise as nicely. These “all-in-one” apps provide customers a spread of features such as banking, messaging, buying and ride-hailing. The report says their rise, partly because of gadget limitations on the continent, owes a lot to the identical situations which have led to a surge in fintech apps: systemic underbanking.

“Super apps remove some of the barriers that these users face, as well as providing a level of customer insight and experience that traditional banks cannot,” the report mentioned.

Daniel Junowicz, RVP EMEA & Strategic Projects for AppsFlyer, commenting on the traits highlighted in the report mentioned, “…The mobile app space in Africa is thriving despite the turmoil of last year. Installs are growing, and consumers are spending more money than ever before, highlighting just how important mobile can be for businesses when it comes to driving revenue.”

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