By Gabriella Mulligan, co-founder Disrupt Africa
The opportunity presented by the value added services (VAS) market for startups across Africa is phenomenal, as demand for quality African content grows in tandem with mobile and internet uptake.
To date only 19 per cent of
Africa’s 1 billion-strong population is online according to the International
Data Corporation (IDC). The flipside of this statistic is the sheer size of the
untapped market - a market of consumers who are (not-so-)slowly, but surely,
coming online and will demand quality content when they arrive.
Africa also has the fastest
growing middle class in the world, with McKinsey estimating Africa’s consumer
spending will hit US$1.4 trillion within the next five years.
What these figures say to me is
that in Africa we’re at the dawn of an era with the potential to be
characterised by a booming VAS market - and I think that market will be led by
the continent’s outstanding startups, and the key will be localised African
content.
Of course, as a news website we
at Disrupt Africa believe
in the future of online written content in Africa, and day-to-day we see the
demand for a source of quality, engaging written content pertaining to Africa’s
success stories.
Africa wants to hear about new
ideas and new opportunities; the continent wants to engage with the business
sector, read about successes, and glean advice. The call for online written
content catering to an African audience is most definitely there.
But by all means leave the
written market for us! Opportunity presents itself for African content across
media channels.
The rise of video-on-demand in
Africa - fuelled by startups and small businesses - is testament to the growing
demand for video services. Traditional television providers are already
playing catch-up, trying to reinvent themselves to remain competitive within
the new market.
However, it’s the smaller
home-grown companies, close to the ground and quick to respond, which can grab
the opportunity of video-on-demand with both hands. Africa’s own
innovators are offering African video content services which speak directly to
the market’s desires; and via the devices the market likes (ahem,
mobile). If you don’t know what I’m talking about, go and check out Wabona.
Africa will forever be the home
of music, a fact which screams only one question: where are all the innovative
music services? Why don’t the continent’s music lovers have access to all the
content they want, whenever they want it, in the format they want it, at a cost
they like?
There are people out there
trying, yes. But the market is still wide-open, and the opportunity for
startups to jump in and create a VAS offering that will be indispensable for
African consumers is very real. Just ask Mdundo.
My last mention goes to the
social media opportunity. Startups with a bit of social media savvy - the
world is yours for the taking. Africa has 1 billion people, 720 million
of them have mobile devices. Both of those numbers are growing. People
like to chat, to engage, to share stuff. That’s a potential critical mass
for an awesome new African social media platform ripe for the taking.
So startups, get to work! And
come and talk to Disrupt Africa as soon as you get your idea off the ground.
Disrupt Africa are an official media partner for VAS Africa 2015. VAS Africa will be taking place this 30 June - 1 July in Johannesburg, South Africa. For more information or to register, visit: http://vasafrica.comworldseries.com/
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