Internet could add $300 billion to African economies by 2025: study

Reuters News
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Posted: Nov 20, 2013 12:11 PM
Internet could add $300 billion to African economies by 2025: study

JOHANNESBURG (Reuters) - Africans spending time on the Internet could add $300 billion to the continent's economy by 2025, a new study by consulting firm McKinsey & Co showed on Wednesday.

Only 16 percent of the one billion people in Africa are on the Internet, McKinsey estimates.

The sector could grow to at least 5 to 6 percent of GDP (gross domestic product) but if it follows the take-up rate set by mobile telephony in Africa, McKinsey reckons it could add 10 percent, or $300 billion, to African GDP by 2025.

The economies of Senegal and Kenya draw the most from the Web at 3.3 and 2.9 percent respectively, levels comparable to France and Germany. But South Africa and Morocco could emerge as the digital leaders, McKinsey said.

(Reporting by Helen Nyambura-Mwaura; Editing by Ruth Pitchford)