By Faisal Kiwewa, Arts Connect Africa (ACA) Board Member and Founder and Director at BAYIMBA Cultural Foundation
The global music industry is experiencing a slowdown, with streaming growth decelerating and major players like Apple and Amazon needing help to expand their user bases. Music companies are scrambling to find new revenue streams as the industry enters a slower-growth era.
According to a report by Goldman Sachs, global music streaming revenue is expected to grow at a compound annual growth rate (CAGR) of 8% from 2022 to 2030, a slowdown compared to the 18% CAGR from 2017 to 2021. While the West grapples with these challenges, Africa’s music industry is growing into a vibrant, untapped market with immense potential.
Africa: A Growing Market with Unique Opportunities
Africa’s music scene is thriving. Fuelled by a young population, increasing internet penetration, and a burgeoning middle class. The continent is home to over 1.3 billion people, with a median age of 19.7 years, making it the youngest continent globally. This youthful demographic is a key driver of digital consumption, including music. Internet penetration in Sub-Saharan Africa reached 40% in 2023, up from just 10% in 2010, according to the International Telecommunication Union (ITU). This rapid growth in connectivity is opening new avenues for digital music distribution.
In 2021, the African music industry was valued at $343 million, but it is projected to grow to $500 million by 2025, according to PricewaterhouseCoopers (PwC). Unlike the more mature markets, where growth in the music industry has plateaued, the African creative industry offers a dynamic environment ripe for investment. However, to fully realize this potential, the industry must be structured to support sustainable growth. This is where the Arts Connect Africa (ACA) comes in.
The Role of Strategic Partnerships
To navigate Africa’s diverse markets effectively, it’s crucial to have partners who understand the local industry and its unique challenges. ACA is uniquely positioned to be that partner. With deep connections across the continent and expertise in the local music and creative industries, ACA can help global companies tap into Africa’s potential.
By fostering collaborations between African and international music professionals, ACA can help bridge the gap, bringing global attention to African talent. For instance, the partnership between Universal Music Group and Nigeria’s Aristokrat Records has already yielded successful global exports like Burna Boy, whose album Twice as Tall won a Grammy Award in 2021.
Beyond Streaming: Diversifying Revenue Streams
The future of the music industry, particularly in Africa, isn’t limited to streaming. Live events, merchandise, cultural exchanges, and localized digital content are just a few areas where significant growth can be realized. In 2022, the live music sector in Africa generated $194 million, a figure expected to double by 2027, according to a report by Statista. ACA’s grassroots activities, including concerts, festivals, and educational programs, offer a blueprint for how the industry can diversify and grow beyond traditional revenue streams.
For example, Afrochella, a music festival in Ghana, attracted over 15,000 attendees in 2023, contributing an estimated $2.7 million to the local economy. Similarly a study by Moroccan consulting firm Valyans revealed the Gnaoua Festival in the city of Essaouira in Morocco generates generates 240 million dirhams for the city. These events not only boost local economies but also provide a platform for African artists to gain international recognition.
The Time to Invest is Now
As the global music industry faces a slowdown, Africa presents a fresh frontier for new content and a willing audience. With the right strategic partnerships and an understanding of the local market, the African music industry can become a significant player on the global stage.
According to a 2023 report by MIDiA Research, Africa’s music streaming market is expected to grow by 15% annually, outpacing global averages. The future of music isn’t just about streaming; it’s about embracing new markets and creating value in innovative ways. ACA is here to guide that journey, ensuring that Africa’s music industry reaches its full potential.