Unlocking East Africa’s $20bn digital creative economy

Kenya is at the forefront of expanding its creative economy, a sector that has shown immense potential to become a key revenue driver for the country. With over one million content creators in the market, the niche is forecasted to generate a staggering $16.4 billion by 2030. CNBC Africa recently spoke to Dr. Laila Macharia, Co-Founder & CEO of Africa Digital Media Institute, to delve deeper into this burgeoning industry. Dr. Macharia expressed her excitement about the growth of the creative ecosystem, noting that the sector is finally garnering the attention it deserves from the government and other entities. She emphasized that the creative economy serves as a crucial engine for job creation, attracting young people due to the myriad of opportunities it offers. Dr. Macharia highlighted the flourishing platforms for the creative economy in Kenya, with approximately 10 million individuals on YouTube and Meta each, and a projected 300 million on Facebook Meta across Africa by the end of the year. The increasing recognition of this sector is enabling more avenues for individuals to monetize their content and turn their creativity into a sustainable career. The exponential growth of the digital media space, expected to reach $16 billion by 2030, is fueled by various factors. Dr. Macharia attributed this growth to the widespread accessibility of high-speed internet and smartphones, coupled with emerging technologies such as the cloud and the metaverse. Additionally, there is a surge in government incentives and the availability of formal skilling platforms to enhance content creation. The convergence of these elements has created a propitious moment for creatives to capitalize on their talents and generate income. The creative economy presents a diverse range of opportunities, catering to individuals both in front of and behind the camera. Roles such as filming, editing, videography, photography, set design, sound engineering, and content distribution offer avenues for individuals to showcase their skills and interests. Dr. Macharia emphasized the importance of treating content creation as a serious job, requiring discipline, high-quality output, and investment in infrastructure and equipment. While the creative economy presents significant opportunities, there are challenges that African content creators face. Dr. Macharia emphasized the need for creators to approach their craft diligently, invest in skill development, and access necessary support systems. Connectivity remains a critical challenge in some regions, hindering creators' access to high-speed internet and digital content. The conversation also touched on the issue of digital taxes and their impact on the digital economy landscape. Dr. Macharia cautioned against imposing excessive digital taxes, highlighting the importance of creating a conducive environment for the sector to thrive. She urged governments to focus on easing bureaucracy and tax burdens to support the growth of fledgling individuals and small companies in the creative industry. While investments in the creative economy are underway, Dr. Macharia believes there is still much room for growth and collaboration. Africa Digital Media Institute and WOWZ have initiated a partnership to establish a creative content creation accelerator. This initiative aims to provide influencers and content creators with upskilling opportunities, mentorship, and guidance on financial management to foster the sector's growth. By collaborating with stakeholders and fostering a supportive ecosystem, Dr. Macharia envisions a future where content creators can translate their talent into sustainable wealth and livelihoods.