By: Dwight Links
A combination of factors has improved the outlook for the Entertainment & Media (E&M) sector for the three largest African economies: South Africa, Nigeria, and Kenya. According to this new report, Africa’s E&M sector is evolving rapidly.
In their 2025 to 2029 sectoral outlook for these large markets, South African auditing firm PWC noted that each of these economies has strong indicators culminating in positive growth trends.
South Africa is the most established market in Africa, with a projected compounded annual growth rate (CAGR) of 3.5%. Nigeria remains the fastest-growing E&M market in Africa, with projected growth at 7.2% through to 2029.
“Kenya is home to the fastest-growing internet advertising market in the world, with a projected CAGR of 16%,” outlines the report around observed growth trends witnessed throughout the year.
The outlook provides detailed insights into how technological advancements, consumer behaviour shifts, and market dynamics are driving growth and transformation across Africa’s entertainment and media sector.
Outperforming global averages, South Africa, Kenya, and Nigeria lead the continent’s growth, with Nigeria showing particularly strong momentum at an 11.2% growth rate in 2024, highlights Charles Stuart, director of Africa Entertainment and Media Leader of PwC South Africa.
Another outlier market in recent times has been Mauritius, also showing positive trends in the report’s analysis.
“Mauritius emerges as an E&M market beginning to show digital momentum, with a projected CAGR of 2.2%,” the report adds.
The five-year outlook also accounts for other observed trends in the continent in relation to audience preferences and the migration to digital services.
“These trends are supported by mature and diverse media landscapes; embracing digital innovation to scale platforms, adapting to consumer behaviour and unlocking new revenue streams,” the report notes.
SHIFTING GOALS
According to PWC’s Nana Madikane, director and co-author of the outlook report, entertainment and media companies are trying to stay ahead of the curve of changing tastes.
“As E&M companies reinvent their business models, they must understand precisely where – in which regions and in which subsectors – new pools of revenues will form,” Madikane indicates.
Part of the strong growth mentioned earlier is based on the rebuilding that these three markets illustrated after the Covid-19 pandemic.
Despite global economic pressures, these markets, according to the report, delivered strong results, outperforming global averages and setting new standards for digital engagement and innovation.
DIGITAL CONNECTIONS
Over-The-Top (OTT) services lead the charge of the growth trends. This has been facilitated by the spread of broader internet accessibility.
“Streaming platforms are expanding across all three markets. South Africa is projected to add 1. million new OTT subscribers by 2029, while Kenya and Nigeria are seeing strong growth,” states PwC.
“It also means that advertising-supported models are helping platforms reach broader audiences, especially in price-sensitive segments,” adds the report.
Connectivity remains a critical driver, according to PwC, as Nigeria has over 107 million internet users, followed by Kenya, which has mobile connections exceeding its own population of 56.4 million per SIM, which also includes Internet of Things devices.
South Africa shows that video accounts for 76% of total data usage, with platforms like TikTok and Instagram leading consumption.
These trends have shown a pivot in how advertising is spread to audiences.
“Advertising is shifting rapidly to digital. Nigeria is expected to reach 84% digital ad spend by 2029, surpassing global benchmarks. South Africa and Kenya are close behind at 74% and 64% respectively,” indicates PwC.
According to the report, retail displays and paid search content are among the fastest-growing segments.
“What we are seeing now is a redefinition of how media is produced, consumed and monetised,” the auditing firm explains.
