- Investing in Africa’s music industry offers numerous opportunities for growth and success.
- Dataxis predicts that Africa’s annual music streaming revenues will grow from US$92.9 million in 2021 to US$314.6 million by 2026.
- The music industry in Africa faces significant competition from international music markets, particularly from Europe and North America.
The music industry in Africa is a growing and dynamic sector that offers numerous opportunities for investment, growth and success. Despite facing challenges such as intellectual property rights issues, lack of investment and infrastructure, and competition from international music markets, the music industry in Africa is thriving and presents a unique opportunity for investment.
Africa is home to a rich and diverse musical heritage, with music playing an important role in the cultural and social lives of its people. The music industry in Africa encompasses a range of genres including traditional, pop, hip hop, and gospel, and is estimated to be worth billions of dollars. The industry is growing and evolving at a rapid pace, with new technologies and innovations enabling greater access to music and wider distribution channels.
Investing in Africa’s music industry offers numerous opportunities for growth and success. According to recent market research, the music industry in Africa is worth an estimated $3 billion, and is expected to grow significantly in the coming years. This growth is driven by several factors, including the increasing popularity of African music both within the continent and internationally, as well as the rise of new technologies and innovations that are changing the way music is consumed and distributed.
According to the IFPI, Sub-Saharan Africa generated US$70.1 million of revenues from recorded music in 2021 – one of the first times we’ve had an ‘official’ industry figure for the region. That was up by 9.6 per cent year-on-year, but how might it grow in the next few years?
Research firm Dataxis has made some predictions that are worth chewing over. They’re for Africa’s music streaming revenues. Unlike the figure above, these are forecasts for the entire continent of Africa, including markets like Egypt, Morocco and Algeria that the IFPI counts separately in the Middle East and North Africa (MENA) region.
The company predicts that Africa’s annual music streaming revenues will grow from US$92.9 million in 2021 to US$314.6 million by 2026, while warning that internet penetration rates will be the main ceiling on this growth. “Streaming cannot go faster than infrastructure,” as the company put it.
Dataxis also noted that the majority of revenues are still coming from a minority of African countries: around 40 per cent from South Africa, and 86 per cent from South Africa, Egypt, Nigeria, Morocco and Algeria – the top five markets in the region.
Analysts predict significant growth in the coming years. The increasing popularity of African music and the rise of new technologies are expected to drive this growth, as well as the growing middle class and the rise of new markets and distribution channels.
Investment opportunities
Live music events and concerts
Live music events and concerts are an important part of the music industry in Africa, and offer a number of investment opportunities. These events provide a platform for artists to showcase their music and reach a wider audience, while also offering a range of business opportunities, such as ticket sales, sponsorships, and merchandising.
Music production and recording studios
Music production and recording studios are another key component of the music industry in Africa, and offer investment opportunities for those interested in the production and distribution of music. These studios can provide recording, mixing and mastering services, as well as support for independent artists and emerging talent.
Distribution and licensing
Music distribution and licensing is an essential part of the music industry, and offers significant investment opportunities in Africa. These opportunities include the distribution of music through digital platforms, as well as the licensing of music for use in film, television, and other media.
Music technology and innovation
Music technology and innovation are key drivers of growth in the music industry, and offer a range of investment opportunities in Africa. These opportunities include the development of new technologies and innovations such as music streaming platforms, mobile apps, and music distribution platforms, as well as the development of new business models that are changing the way music is consumed and distributed.
Challenges and risks
Intellectual property rights
Intellectual property rights are a major challenge in the music industry in Africa, with issues such as copyright infringement, piracy and counterfeiting affecting the industry. This challenge can be addressed through the implementation of stronger intellectual property laws and enforcement mechanisms, as well as the development of new technologies and innovations that make it easier to protect and monetize musical works.
Lack of infrastructure and investment
Lack of investment and infrastructure is another major challenge facing the music industry in Africa, with many artists and entrepreneurs facing difficulties in accessing funding and support. To address this challenge, there is a need for increased investment and support from the private sector, as well as government initiatives aimed at developing the infrastructure and supporting the growth of the industry.
Competition from international music markets
The music industry in Africa faces significant competition from international music markets, particularly from Europe and North America. This competition can be mitigated through the development of strong and distinctive African musical brands, as well as through the creation of strategic partnerships and collaborations with international music markets.
In 2022, Afrobeats artists were regular names on the global stage, winning awards, featuring on Hollywood soundtracks, packing out stadiums and even getting their own music charts in the UK and US.
According to The Conversation, 2022 is undoubtedly also the year of breakout artist Asake, whose hit Terminator ignites memories of the Hollywood movie The Terminator. Asake shows how trans-artistic and transnational Afrobeats gets. Some of Nigeria’s leading presidential candidates, while abroad, put out videos dancing to or working out to Asake’s crowd favourite Organise.
“Queen of Afrobeats”, 42-year-old Tiwa Savage, joined forces with Asake to pull off a hit single, Loaded, addressing a leaked sex tape. Rising singer Oxlade captured the airwaves with Ku lo sa. Other notable mentions include Ayra Starr’s career-defining Rush and MohBad’s Peace, which addresses unsatisfactory contracts with local labels.
Alongside her rendition of Bob Marley’s No Woman, No Cry, 2022 belongs to producer and R&B fusion singer-songwriter Tems. At home she won two Headies Awards for her EP If Orange Was A Place and then stormed the US, picking up a BET Award, Best New Artist at the Soul Train Music Awards and two American Music Awards. She is nominated in three categories for the 2023 Grammy Awards. Tems performed at some of the most significant music festivals on the planet in 2022 and adorns the cover of the winter 2022 Dazed Magazine.
2022 is the year of Buga – a viral hit by singer-songwriter Kizz Daniel with its dance moves being performed publicly by notable figures including Liberian president George Weah.
In 2022, the African music scene continued to thrive and produce some of the most exciting and innovative music of the year. The songs showcases the artists’ unique blend of traditional African music styles and contemporary pop and hip-hop influences. The tracks feature a pulsing beat, catchy hooks, and infectious rhythms that are sure to get audiences moving and grooving.
In addition to their infectious energy, the songs also showcase the artists’ exceptional vocal abilities and lyrical prowess. The lyrics, delivered in a mixture of English and the artists’ native languages, are both powerful and thought-provoking, exploring themes of love, hope, and perseverance.
As the African music scene continues to grow and evolve, the songs serve as a testament to the incredible talent and creativity of the region’s musicians. Whether you’re a fan of African music or simply looking for some fresh and exciting new sounds.
