Internet access and the spread of mobile technology continue to increase digital music consumption. In Sub-Saharan Africa, unique mobile subscriber penetration reached 44% by the end of 2017, up from just 25% at the start of the decade. In 2016, streaming revenue grew by 334.2% in South Africa. African youth are also supporting a growing live music business.
The exploding popularity of African artists has prompted a rise in transatlantic musical collaborations. Nigerian artist Tiwa Savage’s collaboration with Fantasia, for example, earned a Grammy nomination in 2010, and WizKid’s feature on Drake’s “One Dance” led to a multi-album worldwide deal with RCA Records of Sony Music International.
Yes, but: Because of weak legal protections for intellectual property and widespread piracy, capturing value in Africa’s less-developed music markets is challenging. With the shift to streaming business models, the ability to effectively license audio, performance rights, songwriting and branding is increasingly important.
The bottom line: Nigeria is no longer a source for just oil in the global market. The creative industries contribute over $7 billion to Nigerian GDP, with the music industry alone expected to be worth $73 million in the next few years. Accordingly, U.S. entertainment companies will be increasingly active in Nigeria, and in African markets more generally.
Aubrey Hruby is a senior fellow in the Atlantic Council's Africa Center.
