African mobile market records 41% rise in overall installations

The African mobile app market has shown significant growth, with an overall increase of 41% in app installations, according to a joint report by Appsflyer and Google. The report highlights the booming trend of app downloads in various African countries, with Nigeria leading the pack with a 43% increase, followed by South Africa with a 37% uplift, and Kenya with a 29% rise in installations. Daniel Junowicz, Regional Vice President for Europe Middle East and Africa for Strategic Projects at Appsflyer, joined CNBC Africa to discuss the key findings of the report. He pointed out that the increase in app installations was largely driven by two main verticals: the financial sector, particularly FinTech applications, and the gaming industry. The COVID-19 pandemic and subsequent lockdowns played a significant role in the surge of app downloads, as people turned to their smartphones for entertainment and financial transactions. Junowicz emphasized that the spike in app downloads was not limited to a single quarter but continued throughout the year, indicating a sustained trend in mobile app usage. He noted that Nigeria's large mobile-first population, combined with increasing smartphone penetration, contributed to the country's significant growth in app installations. Moreover, he highlighted the willingness of Nigerian consumers to make in-app purchases, a trend that is expected to continue and drive further growth in 2021. In addition to Nigeria, South Africa and Kenya also saw remarkable growth in in-app purchases, with a staggering increase of almost 200% in this segment. Junowicz described these numbers as 'mind-blowing,' noting that such rapid growth in in-app purchases was unprecedented in other regions. He emphasized the positive implications of this trend for the mobile ecosystem, as it creates opportunities for businesses to capitalize on the growing mobile market. When it comes to specific verticals, finance apps emerged as the leaders in the African mobile app market. These applications, aimed at addressing banking challenges and providing convenient financial services, experienced a significant surge in adoption. Junowicz explained that the ease of access to financial services through mobile apps, particularly during lockdowns, was a key driver for the growth of finance apps across the region. While gaming apps also witnessed growth, Junowicz highlighted the difference in user profiles between finance and gaming apps. He noted that retention rates for financial apps tended to be higher than gaming apps, indicating a long-term engagement with financial services apps among users. Junowicz underscored the importance of monitoring these trends and adapting strategies to cater to the evolving preferences of mobile app users. Overall, the report reflects a vibrant and dynamic mobile app market in Africa, with promising opportunities for businesses to leverage the growing demand for mobile applications. As the region continues to embrace digital technologies and smartphones become more accessible, the stage is set for further growth and innovation in the African mobile app ecosystem.