By Emmanuel Nduka Obisue
Nigeria has emerged as Africa’s top-performing entertainment and media (E&M) market, recording an impressive 11.2 percent growth rate in 2024, according to PwC’s latest Africa Entertainment and Media Outlook 2025–2029 report.
The report, titled “Africa’s E&M Shift: Fast, Focused and Future-Ready,” shows Kenya and South Africa following closely with growth rates of 7.1 percent and 6.2 percent respectively. It projects that Nigeria will maintain its lead with a compound annual growth rate (CAGR) of 7.2 percent through 2029, compared with Kenya’s 5.2 percent and South Africa’s 3.5 percent.
According to PwC, Nigeria’s momentum is being driven by the rapid expansion of internet advertising, video games, esports, OTT streaming, and audio content such as music, radio, and podcasts. “Mobile internet and video streaming are expected to lead growth, fueled by cheaper data plans and smartphone penetration,” the report stated.
It further noted that gaming and social media advertising are gaining traction among Gen Z and millennial audiences. Despite persistent infrastructure challenges, digital innovation in Nigeria continues to outpace these obstacles, buoyed by its large, youthful population, the biggest on the continent.
PwC observed that improving digital infrastructure remains essential for sustaining growth. “The key to unlocking Nigeria’s E&M potential lies in scalable digital infrastructure, regulatory clarity, and inclusive access, especially for underserved communities,” it said, adding that ongoing investments in fibre rollout and 5G deployment would enhance connectivity and digital experiences.
Across the continent, the report highlighted that streaming platforms are expanding rapidly. South Africa is projected to add 1.4 million new OTT subscribers by 2029, while Kenya and Nigeria are also expected to post strong growth. Ad-supported models are helping platforms reach broader audiences, especially in price-sensitive markets.
Connectivity remains the most critical growth driver. “Nigeria now has 107 million internet users, while Kenya’s mobile connections already exceed its population per SIM, including IoT devices. In South Africa, video accounts for 76 percent of total data usage, with TikTok and Instagram leading consumption,” the report stated.
PwC described the continent’s entertainment and media sector as evolving at a remarkable pace. “What we are seeing now is a redefinition of how media is produced, consumed, and monetised,” it said. “The E&M sectors in South Africa, Nigeria, and Kenya continue to outperform global benchmarks, displaying resilience despite macroeconomic challenges”.
The report identified internet advertising as a key growth driver, especially in Nigeria and Kenya, where mobile-first internet usage is accelerating. Kenya’s internet advertising market, projected to grow at a CAGR of 16 percent, is currently the fastest globally.
It also revealed that over-the-top (OTT) services are growing steadily — at 8.0 percent in Nigeria, 11.2 percent in Kenya, and 6.7 percent in South Africa — reflecting strong consumer demand for digital content.
PwC pointed out that generative AI (GenAI) is emerging as a transformative force in the E&M industry, enhancing content creation, recommendation engines, and customer engagement. “Nigeria, with its youthful and tech-savvy population, is well positioned to harness GenAI’s potential,” the report said, adding that live entertainment revenues have now surpassed pre-pandemic levels across the region.
However, it cautioned that regulatory changes and tariffs remain significant obstacles to growth, while inflation and economic uncertainty continue to constrain consumer spending.
Globally, the report noted that advertising has become the dominant revenue stream for the E&M sector, growing at a CAGR of 6.1 percent compared to 2.0 percent for consumer spending. “By 2029, global advertising revenue is projected to exceed consumer spending by more than $300 billion,” it stated.
PwC concluded that while South Africa remains the most mature E&M market on the continent with a projected 3.5 percent CAGR, Nigeria’s 7.2 percent growth outlook through 2029 cements its position as Africa’s fastest-growing market. Kenya, on the other hand, is home to the world’s fastest-growing internet advertising segment.
