Posts tagged Africa

Africa’s Creators Are Clicking—but Not Yet Cashing In

Cultural Industry Economics

Why monetisation on digital platforms still fails to pay off on the continent

In a continent bursting with digital creativity, African content creators are mastering the art of storytelling, humour, dance, fashion and commentary—sometimes all in the same 30-second TikTok video. What they are not mastering, however, is monetisation. Not for lack of trying.

Take Nigerian YouTuber Tayo Aina, who once garnered over a million views with a viral video covering J. Cole’s concert in Lagos. His reward? A mere $132 from YouTube. Creators elsewhere would have earned ten times as much. The disparity isn’t due to poor content or lack of audience. The problem lies deeper—in the way digital platforms value (or rather, under-value) African traffic, and in the structure of Africa’s advertising economy.

Most global platforms—YouTube, Facebook, TikTok, and Instagram—rely on advertising to pay creators. But monetisation tools are only partially available in Africa. YouTube Partner Programme is officially available in just 13 out of 55 African countries. TikTok’s Creator Fund doesn’t exist on the continent. Facebook’s ad-sharing tools are limited to a few North African markets. And Twitter (now X) pays creators through Stripe, a service largely unavailable in Africa.

Even when monetisation is technically possible, it’s rarely profitable. African creators suffer from dismally low cost-per-mille (CPM) rates. While advertisers in the US or Australia may pay $30 or more per 1,000 views, rates in Africa often hover below $5. Advertisers simply do not value African eyeballs the same way. That’s partly because few foreign brands see Africa as a priority market—and local businesses are not picking up the slack.

Why not? The vast majority of African businesses are SMEs or informal enterprises. Few allocate budgets for digital advertising. Many prefer traditional tactics: word-of-mouth, flyers, local radio. Others distrust online platforms or lack the digital skills to run targeted ad campaigns. Even for willing advertisers, payment barriers (like the absence of local currency billing or mobile money integration) make access difficult.

So, creators turn to brand partnerships, product placements and offline gigs. But even these have limits—especially when local brands lack deep pockets. The irony is painful: Africa has one of the world’s fastest-growing digital audiences, yet its creators earn the least.

What can be done?

First, digital education is key. Many SMEs remain unaware that digital ads can be precisely targeted and cost-effective. Training initiatives by Google, Meta and local NGOs are helpful, but must scale further. Second, platforms must adapt: accept mobile money, simplify interfaces, and expand monetisation tools continent-wide. Third, local success stories must be spotlighted—nothing converts sceptics like seeing their neighbours succeed.

Finally, a new generation of African creators is not waiting. They are inventing alternative models—private WhatsApp groups, affiliate links, crowdfunding, even virtual “tip jars” via mobile money. It’s a patchwork system, but it shows a continent finding its own monetisation path.

For now, African creators continue to hustle, entertain, and educate—often for passion more than profit. The platforms may not yet pay them what they deserve. But one day, perhaps soon, a young Kenyan TikToker will open her app and discover she’s made enough to fund her business, not just feed the algorithm.

And when that day comes, Africa’s digital creators will no longer just go viral. They’ll finally go viable.

Read more here : https://danydombou.fr/publicite-numerique-en-afrique-pourquoi-les-pme-nosent-pas-investir/

The Impact of USAID’s Suspension on Private Sector Development in Africa

Economics USA

The recent decision by the Trump administration, backed by Elon Musk, to suspend the activities of the United States Agency for International Development (USAID) marks a major shift in U.S. foreign aid policy. In Africa, where USAID has played a critical role in supporting private sector growth, this decision raises serious concerns. Before analyzing the economic consequences of this suspension, it is essential to understand the broader context of official development assistance (ODA) and its impact on Africa.

📌 Understanding Official Development Assistance (ODA) and Its Role in Africa

Official Development Assistance (ODA) refers to funding provided by governments or international institutions to support economic growth and stability in developing countries. This aid can take the form of grants, concessional loans, or technical assistance.

In 2022, global ODA reached $204 billion, a 13.6% increase from 2021 (source: OECD). Africa remains one of the largest beneficiaries, receiving about 35% of this aid, with significant funding directed toward infrastructure, education, and private sector support.

The top contributors to African ODA include:

  • United States (USAID): $41 billion in 2021.
  • European Union: $27 billion.
  • China: $23 billion (mainly infrastructure-related investments).

USAID has distinguished itself by combining direct funding with capacity-building programs and private sector investment incentives through flagship initiatives like Power Africa and Prosper Africa.

🚨 The Impact of USAID’s Suspension on Private Sector Development in Africa

The closure of USAID disrupts key programs supporting small and medium-sized enterprises (SMEs), entrepreneurship, and economic infrastructure development. Three key areas are particularly affected: access to financing, technical support, and infrastructure development.

🔎 1. A Funding Crisis for African Businesses

USAID was a major player in financing African SMEs through mechanisms like the Development Credit Authority (DCA), which guaranteed bank loans for local entrepreneurs.

  • In 2021, this program facilitated over $5 billion in loans for African businesses.
  • With USAID’s suspension, access to capital for SMEs—especially in agriculture, renewable energy, and healthcare—will shrink significantly.

📍 Case Study: Nigeria
The Solar Power Naija program, supported by USAID under Power Africa, aimed to finance 5 million home solar systems to electrify rural areas. Its suspension jeopardizes energy access for over 25 million Nigerians (source: USAID).

🔎 2. Loss of Technical Support and Market Access

Beyond financial aid, USAID provided technical assistance to help businesses scale and access international markets.

📍 Case Study: West Africa
Through Prosper Africa, USAID facilitated $1.6 billion in investment deals, linking African businesses with U.S. markets (source: U.S. State Department). Without this assistance, many entrepreneurs risk losing critical international trade opportunities and financing options.

🔎 3. Disruption of Critical Infrastructure Projects

Private sector growth in Africa depends on modern infrastructure, including roads, electricity, ports, and telecommunications. USAID co-financed many of these projects.

📍 Case Study: Kenya
The Kenya Investment Mechanism, which aimed to mobilize $400 million for infrastructure projects, is now on hold. This delay will slow down rural electrification and road improvements critical for local trade (source: USAID Kenya).

📉 Possible Scenarios: What Lies Ahead for Africa’s Private Sector?

The shutdown of USAID creates uncertainty, but several outcomes are possible, depending on how other international actors respond.

1️⃣ Worst-Case Scenario: A Funding Vacuum Without Alternatives

If no organization steps in to fill the gap left by USAID, Africa could face:

  • A decline in foreign direct investment (FDI).
  • Higher SME failure rates due to lack of financing.
  • Reduced trade with the U.S., weakening existing economic agreements.

Countries most at risk: Nigeria, Kenya, Ethiopia, Senegal, where USAID played a crucial economic role.

2️⃣ Transitional Scenario: The European Union and China Step In

With the U.S. pulling back, other players like the European Union and China might expand their influence. The EU has announced a €150 billion investment plan for Africa under its Global Gateway initiative, while China continues to invest heavily through its Belt and Road Initiative.

Sectors likely to benefit: Infrastructure, renewable energy, logistics.
Sectors at risk: Startups, SMEs, access to non-state financing.

3️⃣ Resilience Scenario: Africa Strengthens Its Own Financial Systems

USAID’s absence could push African governments to develop their own mechanisms for private sector financing, including:

  • Greater involvement from regional African banks (e.g., BOAD, Afreximbank).
  • Strengthening African sovereign wealth funds to replace external financing.
  • Accelerating economic integration through the AfCFTA (African Continental Free Trade Area).

This scenario depends on African policymakers’ ability to implement strong economic reforms.

📜 Sources

  • Organisation for Economic Co-operation and Development (OECD) – 2023 ODA Report.
  • USAID – Power Africa Annual Report 2022.
  • U.S. State Department – Prosper Africa data.
  • World Bank – SME financing data for Africa.
  • European Commission – Global Gateway Africa investment plan 2023.
  • Afreximbank – 2023 Report on Trade Finance in Africa.

Africa Joins the Global Race for Artificial Intelligence

AI Technology & Innovation

In the global competition to dominate artificial intelligence (AI), all eyes are on the United States and China, locked in a titanic battle fuelled by billions of dollars. Yet, in the shadow of these giants, an unexpected contender is stepping into the arena: Africa. Often stereotyped as a region of aid dependence and underdevelopment, the continent is now making waves in AI innovation. And trust me, the Americans and Chinese would be wise to pay attention.

The Big Players: The US and China Compete for Supremacy

On one side, you have the United States with its well-oiled money machine. OpenAI, Google, Microsoft – the usual suspects. These companies attract the brightest minds like moths to a flame, with government support in the form of a staggering $500 billion investment to maintain dominance. Part of this effort includes a mega data centre in Texas, a project that screams Silicon Valley on steroids.

On the other side, there’s China, which never does things halfway. Its ambition is clear: to surpass the US. Its secret weapon? DeepSeek, a startup already challenging American heavyweights. Backed by government funding, China has set an ambitious goal to lead the world in AI by 2030 – and they mean business.

Europe: Too Much Talk, Too Little Action

Meanwhile, Europe does what it does best: talk. Its AI Act, adopted in 2024, is a gold standard for ethics and regulation. Bravo, Europe – you’re the teacher reminding everyone to play by the rules. But while it pats itself on the back for creating a legal framework, the Americans and Chinese keep playing the game. The result? Europe is stuck watching the race from the sidelines.

Africa: Frugal Innovation at Its Best

Where things get interesting is Africa’s entrance into the match. Not with billions, but with ideas. The continent isn’t trying to match the astronomical budgets of the superpowers; instead, it’s focused on solving real problems.

Agriculture and Environment: Solving the Essentials

Take Zenvus, a Nigerian startup that helps farmers analyse soil to maximise yields. Or M-Situ in Kenya, which uses AI to combat deforestation by detecting chainsaw noise and fires, alerting rangers in real-time. While others fantasise about self-driving cars, Africa tackles hunger and natural resource preservation. Priorities, anyone?

Health and Education: Meeting Critical Needs

Rwanda is not just a development success story; it’s also becoming an AI pioneer. With Ircad Africa, the country trains doctors in cutting-edge surgical techniques using AI. In Ghana, SuaCode makes programming education accessible to thousands with nothing more than a smartphone. While Silicon Valley sells $1,000 gadgets, Africa is democratising access.

African Languages: Culture Gets a Boost

What about African languages? In 2024, Google Translate added 31 new African languages, including Wolof and Baoulé. This is a big deal. It shows that AI can also be a tool for cultural preservation. Africa isn’t just catching up; it’s putting its culture and priorities at the forefront.

The Moral of the Story: A Quiet Revolution

So, what does Africa’s rise in AI teach us? That innovation isn’t just about billions of dollars or patent filings. It’s about real impact on people’s lives. And in this area, Africa has plenty to offer.

The race for AI isn’t just a technological arms race. It’s a battle to define the future. While the giants clash with supercomputers and massive budgets, Africa is proving it can be a key player by playing on its terms. The US and China would do well to stop looking over the continent’s shoulder and start paying attention to what’s happening on the ground. Because, believe me, this African revolution, quiet but impactful, is just getting started.

CFA franc: Rumors of a ‘Subtle’ Devaluation—Myth or Reality?

Economics Finance

Tribune written in 2022, at the time rumors were circulating about an FCFA devaluation

For the past few weeks, rumors of a “subtle” devaluation of the FCFA have been spreading, generating both curiosity and fear on social media. According to those who support this thesis, the continued rise in market prices and the loss of purchasing power in Cameroon (and in other FCFA-using countries) would be the result of a strategy aimed at insidiously devaluing the FCFA.

At first glance, this reasoning appears plausible: in just a few months, the price of many staple goods has risen significantly. The most frequently cited example is refined cooking oil, with the liter allegedly going from around 1000 FCFA to 1800 FCFA. Consequently, with a budget of 10,000 FCFA, a household can now only afford 5 bottles of oil instead of 10. Cameroonians continue to work just as much — if not more — yet their purchasing power is declining, which seems to suggest a de facto devaluation of the currency.

However, it is crucial to recall that, from a technical standpoint, devaluation is defined as a decision by the institution responsible for managing a currency to reduce its official exchange rate relative to other currencies. In the case of the FCFA, no such official decision has been made by the member states of the BEAC. We therefore cannot speak of a “devaluation” in the strict sense. It might be more appropriate to refer to a “depreciation,” but this typically applies to currencies under a floating exchange regime, which is not the case with the FCFA.

The generalized price increase and the loss of purchasing power can instead be attributed to rampant inflation, which has also affected the euro since the onset of the Covid-19 crisis and the war in Ukraine.

A brief historical overview of FCFA devaluation

The FCFA was created in 1948 as a common currency for French African colonies, with a fixed parity to the former French franc (FF). Until January 1994, the official rate stood at 50 FCFA to 1 FF (approximately 280 FCFA to 1 US dollar). Following the 1994 devaluation and France’s adoption of the euro, the parity was set at 655.957 FCFA to 1 EUR. This first official devaluation was implemented as a response to the economic and financial crisis affecting member countries, including Cameroon, which had been hit hard by the downturn in its agricultural and oil exports.

Today, the Cameroonian economy is not at its peak, but it is not in a crisis severe enough to justify a devaluation. Despite declining oil prices in 2015, security, social, and political crises in 2016 and 2018, as well as the Covid-19 pandemic and the effects of the war in Ukraine, Cameroon still maintained a positive growth rate of 0.7%. The country has successfully diversified its economy, and inflation remains below the community threshold set by the BEAC (the same holds true for most other countries in the zone). From a strictly economic viewpoint, it is therefore difficult to speak of a “subtle” devaluation.

The geopolitical argument

Others put forward a “geopolitical” argument: that there are hidden interests prompting FCFA-using states to pay off their external debts to those supposedly orchestrating the devaluation. However, as the FCFA is pegged to the euro, repaying debt in euros is, in relative terms, equivalent to repaying it in FCFA. A so-called “subtle” devaluation would have no specific effect on servicing euro-denominated debt.

On the other hand, the depreciation of the euro (and thus the FCFA) against the dollar makes dollar-denominated debts more expensive to repay. In 2022, the dollar reached a historically high level against the FCFA, making it costlier for Cameroonians to settle debts in USD. The euro has also experienced depreciation, reducing the ability of Europeans to meet some of their financial obligations. Meanwhile, currencies such as the Chinese yuan or the Russian ruble have gained value against the euro, thus raising the cost of transactions (and debt repayment) for many African countries.

According to a report from Cameroon’s Ministry of Finance, in 2019, 76.3% of the country’s public debt was denominated in foreign currencies, including 29.4% in euros. This portfolio includes debt in US dollars and Chinese yuan, and some estimates suggest that China holds more than 50% of Cameroon’s bilateral debt.

What about the fixed parity?

Thus, the real question behind these rumors might be: does the FCFA’s fixed parity with the euro still reflect the actual situation and economic potential of the franc zone countries? Given the resilience shown by these countries during recent crises, it may be worth re-examining the usefulness of maintaining this peg or considering alternative currency management arrangements.

Dany R. Dombou, Cameroonian economist

Original version of the article available here: https://ecomatin.net/faut-il-se-preparer-a-une-devaluation-du-fcfa2

African Creative Industries: The Untapped Goldmine

Cultural Industry Economics

There’s something ironic about the state of Africa’s cultural and creative industries (CCIs). While African artists dominate global stages—Burna Boy headlining festivals, Nollywood captivating millions of viewers, and fashion designers lighting up runways from Paris to New York—the continent accounts for just 1% of the global CCI economy. Yes, 1%, in a market worth $2.3 trillion. Let that sink in for a moment.

Yet, a glimmer of hope emerges. The African Export-Import Bank (Afreximbank) recently announced a $2 billion annual fund to boost African CCIs over the next three years. It’s a bold move, but will it be enough to unlock the sector’s full potential?

In this article, we’ll dive into the promises and challenges of this burgeoning industry, blending current events, theory, and real-world cases.

A Promising Yet Underperforming Sector

When we talk about African CCIs, the usual suspects come to mind: music, film, fashion, and gaming. These sectors are brimming with potential, driven by a young, dynamic, and hyper-creative population. Yet, the reality is often far less glamorous. Despite their talent, many African creatives struggle to make a sustainable living.

Take Nollywood, for example, the world’s second-largest film industry by volume. It produces an impressive 2,500 films per year, but its ecosystem is plagued by distribution challenges, rampant piracy, and a dire lack of modern infrastructure. As a result, its revenues fall far short of its potential.

Investments Alone Won’t Solve Everything

Afreximbank’s announcement is undoubtedly a step in the right direction. A fund of this scale has the potential to transform the sector. But let’s ask the critical question: is money alone enough to fix decades of underinvestment?

Challenge 1: Infrastructure gaps. Across Africa, modern production and distribution facilities are scarce. Many artists must travel abroad to access professional studios, and filmmakers often struggle to bring their visions to life with limited resources.

Challenge 2: Weak legal frameworks. Creators cannot thrive without robust protection of their intellectual property. Yet, copyright infringement is rampant across the continent, and public policies to regulate and support CCIs are often insufficient.

Challenge 3: Limited access to international markets. While African cultural products resonate globally, they often lack the distribution networks and institutional support needed to scale internationally.

Theoretical Insights: A Systemic Approach

Economic development theories emphasize that financial investment, while crucial, is insufficient on its own. A systemic approach is needed—one that combines funding with structural reforms.

UNESCO’s reports on CCIs highlight the importance of integrated cultural policies, which include:

  • Legal protections for creators,
  • Infrastructure development for production and distribution,
  • Training programs to build capacity across the value chain.

Without these foundational elements, even significant investments risk having only a short-term impact.

A Case Study: Gaming in Africa

The gaming sector is a compelling example of both the challenges and opportunities facing African CCIs. Studios like Kiro’o Games in Cameroon and Maliyo Games in Nigeria are pushing boundaries by creating games rooted in African narratives. The market is growing rapidly, with revenues projected to exceed $1 billion by 2024.

Yet, these studios face the same recurring obstacles: insufficient funding, limited access to skilled talent, and weak infrastructure. Despite these challenges, the gaming industry offers a glimpse of what’s possible when creativity meets technology. It demonstrates that Africa can become a major player in CCIs if the right conditions are in place.

Creative Africa: Talent Held Back

So, what’s the takeaway? African CCIs are bursting with talent and opportunity. But to transform this potential into sustainable economic and social development, investments must be coupled with structural reforms.

To truly unlock the potential of CCIs, we must:

  1. Invest in modern infrastructure for production and distribution.
  2. Establish robust legal frameworks to protect creators.
  3. Create pathways to access international markets.

Africa has an abundance of talent and creativity. With the right ecosystem, CCIs can become a powerful engine for growth, while showcasing the continent’s rich cultural heritage to the world.

Sources

  • Afreximbank: Announcement of the $2 billion fund for African CCIs, 2024
  • UNESCO: Reports on cultural and creative industries
  • Agence Ecofin: “African creative industries finally attract financing”
  • Forbes Africa: “The rise of African creative industries”
  • UNESCO and SFSIC: Studies on CCIs and development in Africa