Demystifying Africa #2: Africa’s Sports Betting Economy Is Rapidly Expanding
What does it mean for the adoption of crypto in Africa?
According to a report from 2020, there were roughly 60 million Nigerians between the ages of 18 and 40 who are involved in active sports betting (on average, these punters can spend around 3,000 Naira or about $15 every day on bets). The sports betting market in Nigeria is estimated at $2 billion and is expected to grow primarily driven by the rapid spread of mobile phones.
60 million Nigerians represent roughly 35% of the entire population of Nigeria.
In the most developed and sophisticated market in Africa, South Africa, nearly 50% of all adults participate in the sports betting economy regularly, according to Statista. This craze though is not limited to more established, modern economies in Africa, especially as the smartphone adoption and 4G penetration continue to grow across the entire continent.
There are three main reasons why sports betting is getting a huge traction across the continent.
1/ Love for Sports
Sports are popular globally, but one thing to know about Africa is that sports hold a special place in the hearts of many Africans. While football is the most popular sport across the continent, rugby, cricket, and running events routinely have millions of viewers and fans who get together to watch matches and tournaments.
For instance, Sub-Saharan Africa is one of the Premier League’s fastest-growing audiences, with an estimated around 300 million viewers tuning in each year (according to Premier League data from 2017). English clubs such as Chelsea have earned huge fan bases across the continent, driven by African stars such as Didier Drogba and many many more.
2/ High Population of Unemployed Youth
- According to World Bank, youth unemployment (those 24 years old or younger) was 30% or higher in 10 African countries in 2019.
- Department of Statistics of South Africa stated that South Africa’s unemployment rate rose to 34.9% in the Q3 of 2021 while youth unemployment in South Africa was as high as 60% in the same period.
- According to the Accra-based African Center for Economic Transformation, a policy think tank, in 2019 almost 50% of university graduates in Africa did not get jobs.
Even though, we don't have most recent data for all the countries, we can expect these figures got even worse as a result of COVID-19 in the last 2 years.
In addition, the population of Africa is believed to double by 2050 and the continent will have the world’s largest youth population.
The sports betting industry gives these young people an opportunity to earn as they enjoy their favorite sports events.
3/ Increasing Mobile Phone Penetration
There are 650 million mobile users in Africa, surpassing the number in the United States or Europe, according to the World Bank and African Development Bank.
At the same time, nearly every second mobile device connected to the internet was a smartphone.
It's clear that there are two factors that drive people in Africa to engage in sports betting:
FUN + EXPECTATION OF A FINANCIAL RETURN (no matter how big or small this return may be).
We believe this consumer behavior will further drive adoption of web3 and crypto across the continent.
Jambo embarks on the mission to create a real net positive value for the continent through the Jambo way: enable Africans with new tools to build their communities and inspire them to venture into a new route that will change the destiny of the next generation.
About Jambo
Jambo is building the Web3 super app that will educate, bank and entertain the continent. Jambo aims to pioneer the largest, most influential Web3 user acquisition portal across the continent through “learn, play, earn.” Jambo serves as the bridge between Africa and applications from around the world seeking to tap into the African market. The opportunity here is immense. We have a long-term vision of realizing financial prosperity for Africans.
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