African founders are expressing a nuanced perspective on the continent’s mobile gaming market, suggesting that while it is not broken, it faces significant constraints. Key issues include challenges related to payments, purchasing power, and infrastructural gaps that hinder growth. As the mobile gaming sector is seen as the primary growth engine, driven by high smartphone penetration, the ability to convert this scale into sustainable revenue remains a pressing concern.
Structural Realities Meet Execution Challenges
Many industry leaders acknowledge the structural challenges of monetising games in Africa but caution against labeling the market as fundamentally flawed. Hugo Obi, founder of Maliyo Games, emphasizes that the difficulties stem from a mix of economic realities and an evolving ecosystem. He asserts,
“I don’t believe the African mobile gaming market is structurally broken.”
Obi points out that while mobile game monetisation is a global challenge, it is exacerbated in Africa due to lower purchasing power and payment constraints. He believes that execution and business model design are critical factors influencing commercial success.
Abdallah Elshabrawy, founder of FitNot Games, echoes this sentiment, suggesting that structural barriers and execution issues often intersect. He notes specific constraints such as unfair pricing from Western ad networks and currency volatility that impact margins. Elshabrawy argues that many studios underestimate the importance of effective monetisation design, stating,
“The game isn’t ready to make money even when players show up. That’s not the market failing. That’s the studio failing.”
Ads Dominate Africa’s Current Monetisation Landscape
Among the points of consensus, founders agree that advertising remains the most reliable revenue model for mobile games across Africa. Obi highlights that ad-supported monetisation aligns with the economic realities of many markets, particularly through rewarded video ads. He explains,
“In practice, ad-supported models are currently the most reliable revenue driver, particularly rewarded video ads.”
This approach allows users to engage without direct monetary transactions, which is more feasible given current economic conditions.
Elshabrawy also supports the idea that rewarded video ads are the most effective model in the region, noting that they require no payment method and can yield substantial revenue when properly mediated across multiple networks. However, he raises concerns about lower advertising rates, which necessitate a larger user base to achieve sustainable revenue. He states,
“African traffic commands substantially lower eCPMs than Tier 1 markets, which means you need far more daily active users to generate the same revenue a Western audience game produces at equivalent scale.”
The Purchasing Power Debate: Mobile Reach Versus PC Spending
The conversation around monetisation has intensified with suggestions that PC gaming might offer better revenue potential due to higher spending power. However, founders caution that this view overlooks the significant reach of mobile gaming. Obi articulates this point, stating,
“The PC and mobile markets serve fundamentally different audiences, especially in Africa.”
He emphasizes that while PC users may spend more, the mobile market offers unmatched accessibility and engagement.
Elshabrawy reinforces this perspective, noting that mobile accounts for approximately 87% of African gamers and around 90% of gaming revenue. He highlights that despite higher transaction values in PC gaming, the challenges of discovery and distribution remain formidable barriers for African developers.
Building for Global Markets
Founders also stress the importance of targeting global audiences rather than relying solely on local markets. Edu Shola, CEO of Deluxe Creation, shares that his game, Stickman Magic Brawl, achieved 95% of its downloads outside Africa, underscoring the potential for international revenue. He asserts,
“I don’t think revenue should be limited to Africa if the developer or studio is serious about revenue.”
Esio concurs, noting that successful monetisation in Africa is achievable with the right resources and strategies. He states,
“The issue, therefore, is less about broken monetisation and more about misunderstood context, constraints and missing infrastructure.”
Payments and Local Market Complexity
Several founders emphasize that Africa’s gaming market is not monolithic; it requires a nuanced understanding of diverse payment ecosystems and cultural dynamics. Olivier Madiba, CEO of Kiro’o Games, argues that monetisation strategies must reflect the continent’s varied realities. He explains,
“You have to divide it into subregions with different realities.”
This adaptability is crucial for success in a landscape where mobile money and card payments coexist.
Madiba advocates for a flexible monetisation approach that can cater to regional differences, stating,
“You must build your own monetisation layer fluidly enough to show the right price and payment method to the right players.”
He believes that local insights are essential for effective execution, cautioning against relying solely on external expertise.
A Hybrid Future for Africa’s Games Industry
As the debate between mobile and PC gaming continues, some founders envision a hybrid future for monetisation in Africa. Esio suggests that mobile development is the most practical starting point for many studios, given current industry capacities. He notes,
“Mobile provides a more accessible environment to build this foundation.”
Once established, studios can confidently explore other platforms.
In this evolving landscape, the key to sustainable revenue may lie not in choosing between mobile or PC but in navigating both within Africa’s complex gaming ecosystem. As the industry matures, a deliberate, long-term strategy prioritizing growth and adaptability will be essential for success.
