Africa’s gaming industry is one of the fastest growing in the world; however, fragmented and underdeveloped payments infrastructure across the continent is holding back the full potential of the industry.
“Africa’s gaming industry is growing, yet gamers and developers face significant payment challenges,” Chris Meredith, SVP for business development for Europe Middle East and Africa (EMEA) at video game commerce company Xsolla, told Connecting Africa in an interview.
“Limited access to international payment platforms hampers transactions for buying games or monetizing content. Many local gamers rely on prepaid cards or mobile money, which aren’t universally accepted,” he explained.
On the developer front he said local game creators struggle with securing revenue from global audiences due to currency restrictions and high transaction fees.
“These barriers stifle growth, making it harder for African talent to compete globally or for gamers to enjoy seamless experiences in an increasingly connected world,” Meredith added.
Africa’s growing gaming market
Nevertheless, Meredith describes Africa’s gaming industry as “booming”, driven by a surge in mobile usage and expanding Internet connectivity on the continent.
The African gaming market is valued at around US$2.39 billion in 2025, and is expected to reach US$4.14 billion by 2030, according to data from Mordor Intelligence.
The mobile gaming segment dominates the African gaming market, accounting for approximately 61% market share in 2024.
Meredith said that Africa is also the fastest-growing region for mobile game downloads.
“This growth is propelled by both local developers and international publishers that are targeting the region’s tech-savvy, mobile-first audience,” he added.
Meredith shared that South Africa has the highest concentration of gamers, with 24 million people actively playing.
Other key markets include Egypt, Ethiopia, Ghana, Kenya, Nigeria and Uganda.
He said that there are an estimated 250 active game developers and studios in Africa, a figure growing annually as tech education improves.
Nigeria, South Africa and Egypt account for the largest clusters of game developers and studios (teams of more than two).
“The rise of affordable Internet and smartphones is fueling demand for localized content, encouraging young developers to enter the field. While organizations like the Pan Africa Gaming Group are fostering collaboration, international studios are beginning to notice the region’s potential,” Meredith said.
“As tech education expands, Africa’s game development ecosystem is poised for exponential growth, creating new opportunities,” he added.
.jpg?width=1280&auto=webp&quality=80&disable=upscale "Chris Meredith, SVP for business development for EMEA at Xsolla.")
Chris Meredith, SVP for business development for EMEA. (Source: Xsolla)
Xsolla is a global video game commerce company that provides developers with the tools to manage payments, distribute games and monetize effectively.
It offers over 700 local payment methods worldwide, allowing developers to reach players in regions with limited access to traditional payment platforms, including in Africa.
“We act as a merchant of record for developers, supporting cross-border transactions, handling taxes, and reducing fraud risks so that developers can focus on what matters most – creating games,” Meredith explained.
Xsolla operates on a revenue-sharing business model and takes a percentage of each transaction
“Our success aligns with our partners – when they grow their revenue, so do we. This approach allows us to focus on creating tools and services that simplify game distribution, enhance user experience and drive revenue for developers worldwide,” he said.
Payment pain points
Meredith believes that better payment systems could revolutionize Africa’s gaming market by breaking down barriers for gamers and developers.
Easier access to international platforms would allow players to purchase games and in-game content seamlessly, driving higher engagement and revenue.
For developers, secure and efficient payment options would enable them to monetize their creations globally, attracting investment and encouraging talent to stay within the region.
“The ripple effect would be significant: a thriving gaming ecosystem could create jobs, inspire innovation and showcase African creativity on the world stage. It’s not just about convenience: it’s about unlocking the economic potential of a booming industry,” he said.
Africa’s roadblocks include fragmented payment infrastructure and low banking penetration.
“Many countries rely heavily on mobile money platforms which, while innovative, are not interoperable across borders or with global systems,” the Xsolla SVP explained.
He also pointed out that inconsistent regulations and varying currency controls create hurdles for international transactions, leaving many reliant on costly intermediaries.
“The result of all of this is a patchwork system that complicates cross-border trade and frustrates gamers as well as developers who are seeking seamless financial transactions,” he said.
Meredith believes that integrating popular mobile money platforms with global payment systems would ease access to international markets while cross-border interoperability would allow developers to better monetize their games and would allow players to access global content without restrictions.
“I think what would really help is partnerships with gaming platforms to support local payment methods which would foster inclusion, enabling Africa’s gaming community to fully engage with the global industry,” Meredith said.
Xsolla’s expansion across Africa
Headquartered in Los Angeles, California, Xsolla has been actively expanding its operations in Africa.
In March 2024, Xsolla integrated mobile money services from pan-African operators MTN and Airtel to address the unique financial landscape where a significant portion of the population remains unbanked.
The mobile money integration enables users to manage funds through mobile devices, bypassing the need for traditional banking infrastructure.
As a result, Xsolla has opened access to over 440 million potential customers, simplifying transactions for its merchants and facilitating global expansion for game developers.
Besides mobile money integrations, Xsolla has also integrated payment methods like e-wallets, prepaid cards and local banking options.
Meredith said that in Africa, mobile money services are among the most popular for gamers.
“Mobile payments account for most transactions in key markets like Nigeria, Kenya and Ghana. By tailoring our systems to include these methods, we aim to support a growing gaming community and provide seamless transactions. Our strategy ensures players enjoy premium gaming experiences without needing credit cards or bank accounts,” he said.
Looking into 2025, Meredith said that Xsolla plans to broaden its reach by incorporating additional local payment methods across the continent.
For now, Xsolla doesn’t have any plans to establish an office in Africa, but Meredith said the company is actively exploring opportunities to collaborate with and hire talent as it expands its presence on the continent.
“We recognize the incredible talent pool across Africa and the importance of local expertise in driving innovation,” he added.
The impact of AI and cloud gaming in Africa
When asked about how artificial intelligence (AI) is impacting the gaming industry Meredith said AI is transforming the market “in ways that were unimaginable just a few years ago.”
“Developers are using AI to create smarter, more adaptive NPCs [non-player characters], delivering immersive experiences that respond dynamically to players’ actions. For gamers, AI enhances personalization, tailoring difficulty levels and in-game suggestions to individual play styles.
He said that beyond gameplay, AI tools are streamlining game testing, identifying bugs faster and improving quality assurance.
“As AI continues to evolve, it promises to not only enhance storytelling but also open the door to entirely new gaming experiences,” he added.
Xsolla also uses machine learning algorithms to analyze transaction patterns and identify real-time anomalies to identify payment fraud and account takeovers.
Meredith acknowledged a growing demand for cloud gaming in Africa, driven by an expanding youth population and improved Internet access.
“The rise of mobile gaming – already dominant across the continent – has set the stage for cloud-based services, offering high-quality gaming without expensive hardware,” he explained.
He said South Africa, Kenya and Nigeria are the leading markets, bolstered by investments in data centers and 5G rollouts.
“But challenges like inconsistent connectivity and cost barriers remain. As cloud services proliferate, providers are eyeing Africa’s untapped potential, positioning the continent as a future gaming hub. The industry’s growth hinges on infrastructure upgrades and reducing subscription costs,” he concluded.
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