Kenya and Senegal have been identified as two African countries in
which the internet is having the most significant economic impact.
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| Nairobi, Kenya |
A report entitled Lions go digital: The Internet’s transformative potential in Africa, released by management consulting company McKinsey, lists countries according to the contribution the internet makes to local GDP.
According to the report Africa’s iGDP, the measurement of the internet contribution to overall GDP, is low, at 1.1%, but there is potential.
In Senegal, for example, the internet accounts for 3.3% of the GDP, earning the country a global ranking just behind that of the US, and in Kenya the internet is said to contribute 2.9%.
Sweden is reportedly takes the international lead with its ratio of 6.3%.
McKinsey’s research suggests that the internet’s overall iGDP estimate is $18 billion per annum across the continent
Mobility is highlighted as a major source of potential revenue. It says revenue generated from this market segment is equivalent to 3.7% of Africa’s GDP – more than triple the amount within developed economies.
“In a baseline scenario, Africa’s iGDP could grow to at least 5 to 6 percent of GDP, matching that of leading economies such as Taiwan, the United Kingdom, and Sweden. However, if the Internet achieves impact on the same scale as mobile telephony in Africa, iGDP could account for as much as 10 percent of total GDP by 2025 – or some $300 billion,” the Report states.
