How Africa’s gaming sector can power impactful development

Africa’s gaming sector is expanding rapidly, attracting attention not just for its entertainment value but for the social and economic opportunities it presents. Across the continent, lotteries and gaming operations are already funding community projects, education and infrastructure, showing that revenue from gaming can have a tangible impact.

Yet, Africa continues to face pressing challenges and the sector’s potential is far from fully realised. The question is: how can gaming contribute more deliberately to the continent’s development?

The statistics speak volumes. Africa is the fastest-growing gaming market in the world. According to a report by Carry1st, an African gaming and digital content publisher and Newzoo, a PC and console gamer research platform, Africa’s gaming market experienced significant growth, reaching a revenue of $1.8 billion in 2024. Last year, South Africa alone recorded more than R1-trillion (approximately $57-billion) in gaming spending.

The African Lotteries & Gaming Association (ALGA) has taken the first step by creating a platform for collaboration across the continent. By bringing together operators, regulators and governments, ALGA can help the sector move beyond fragmentation and focus on measurable impact.

At the same time, this moment comes at a critical juncture. While the sector grows, the continent still faces deep development challenges: poverty, famine, social instability, crumbling infrastructure and xenophobia. In a world of artificial intelligence, cryptocurrency and the African Continental Free Trade Area, these issues demand urgent attention.

The question is whether an industry built on chance can become an intentional instrument of progress?

The answer is yes – but it requires a radical reimagining of its role. The African gaming sector has the potential to evolve beyond entertainment and become what I would term the “fifth estate” of African development, a foundational pillar of our socio-economic structure, sitting alongside established continental bodies such as the African Union and the Pan-African Parliament.

How? The revenue generated by gaming presents an unprecedented opportunity to plug the fiscal gaps that hinder our governments. It is a non-traditional source of development funding, directly fuelled by the people. “Gaming with a heart”, as embodied by national lotteries, already demonstrates this direct impact, funding everything from community arts to critical infrastructure.

However, this potential will remain unfulfilled if the African gaming fraternity continues to operate in silos. The formation of ALGA is the necessary first step, creating the platform for unity. But it is only the first step. What remains is the hard work of creating sufficient conditions for change. This means:

1.  Harmonisation and integrity. We must create continental standards to promote responsible gaming and eradicate the illegal operators who cause immeasurable leakage of national revenue and prey on the vulnerable

2.  Innovation with purpose. African tech providers must drive innovation that contextualises gaming for our environment. This includes integrating indigenous games such as Morabaraba and Ncuva into the mainstream and developing solutions to industry challenges such as fraud and unclaimed prizes

3.  Strategic reinvestment. The support given to ALGA must allow it to champion grant models that invest in small businesses and critical youth-driven innovations, and promote a pan-African gaming culture to foster unity and economic integration

ALGA is a chance to redraw the storybook of Africa. It provides the easiest and quickest platform to assemble our one-billion-strong consumer market, creating a unified force for all industries to leverage.

National lotteries already demonstrate how gaming revenue can support development. ALGA can help scale these efforts by sharing best practices, creating funding models and ensuring that revenue reaches projects with real impact.

The sector faces a choice. It can remain fragmented and focus solely on profit or it can coordinate, innovate and reinvest to become a meaningful source of social and economic development – the “fifth estate” of Africa’s growth.

Success will not be measured only in revenue. It will be seen in schools built, jobs created and communities strengthened. With coordinated effort, Africa’s gaming sector can become a considered force for progress, delivering tangible benefits to millions across the continent.

Let’s ensure Africa is the winner.

Alex Mabunda is the CEO of Ntiyiso Consulting Group and a seasoned management consultant with over 22 years of experience in industrialisation, governance, and strategy.

BUSINESS REPORT