AFRICA(GAME CHANGING MARKET) THEME: AFRICA IS FULL OF BRILLIANCE. Africa is full of brilliant, educated young people. Troublingly full. The number of working-age people in the continent is expected to grow to 450 million over the next couple of decades. But Africa's engines of growth aren't keeping up. If enough new positions aren't created by 2035, Africa may be sailing towards a crisis of youth unemployment. This is why every sector of the economy is extremely important to the growth of the continent i.e GAMING Overview on Size of Market Total Population : Estimated @ 1.26bn Under 35 : Estimated at 67% of total African population Internet Penetration: 31% of total population mostly mobile data Mobile Device Penetration: 43.4% Major communication channels : Mobile & Social( Facebook, Whatsapp, Instagram and Twitter. Gaming growth: Mobile sports book penetration in over 35 of the 52 countries in Africa. Various brands from Europe and Asia. Valued at over $18bn in turnover and growing rapidly. Online Purchase of Goods & Services: over 56.7% of under 35% in Africa use one form of mobile wallet or another. Increase in use for Visa and Mastercard in local markets. Mobile Payments: Strongest form of payment in the continent. Debit card transaction is on the increase. Most countries are able to pay for goods and services on foreign sites using their local debit cards. Legal Landscape The Legal landscape for Gaming specifically sports products in Africa is a lot more stable than you would think from the outside looking inwards. Africa is still very grey in most countries. The key countries to have gaming laws are those with traditional casino’s i.e South Africa, Kenya, Uganda, Mozambique, Mauritius, Swaziland, Nigeria, Tanzania and some of the Island. Regulated Countries in East Africa: Kenya, Uganda. Tanzania, Rwanda. Regulated Countries in West Africa: Nigeria, Ghana, Ivory Coast, Senegal, Burkina-Faso, Liberia, Sierria Leone, Togo, Niger etc. Regulated Countries in South Africa South Africa, Botswana, Mozambique, Zimbabwe, Zambia, Angola, Lesotho, Namibia Central Africa Angola, Congo DRC, Congo Brazaville, Gabon, Cameroun, North Africa: Morocco, Tunisia Other islands : Mauritius, Seychelles, Zanzibar Most markets in Africa for Sports betting is highly regulated. TOP PERFORMS FOR 2016 The top performers: Below is a list of the 10 best-performing African nations, as measured by the World Economic Forum's annual Global Competitiveness Report. Based on GDP, EMPLOYMENT, URBANIZATION AND DISPOSABLE INCOME. Mauritius South Africa Rwanda Botswana Morocco Namibia Algeria Tunisia Kenya Cote d l’voire These are the top performers in Africa as per economic growth and job creation for 2016, first & second quarter 2017. CURRENT VALUE OF INTRA-AFRICA TRADE. Current Value = $170 billion (representing 11% of African trade) Projected 5 year value by Afrexim = $250 billion (representing 22% of African trade- 50% growth in intra-Africa trade). “The African Export-Import Bank (Afrexim bank) is to implement a new strategy aimed at driving industrialization across Africa and increasing intra-African trade by, at least, 50 per cent in the next five years. The Afrexim bank Intra-African Trade Strategy, approved by the Board of Directors at its quarterly meeting in Johannesburg in April 2016, will see the Bank work with partners to ramp up trade among African countries to $250 billion from its current level of about $170 billion by 2021, a statement announced.” (Source: http://allafrica.com/stories/201604120963.html) “Afrimart will be a key player In this $250 billion dollar market. We project Afrimart in partnership with Afriexim can reach the $350 billion dollar mark in 5 years” KEY PERFROMANCE INDICATORS Key partner sectors include the following: 1. INFRASTRUCTURE AND TECHNOLOGY DEVELOPMENT 2. JOB CREATION AND FDI 3. FASTER AND ATTRACTIVE POLICY IMPLEMENTATION 4. COMPETITIVE CITIES AND URBANIZATION URBANIZATION TRENDS IN AFRICA There is a sharp reduction in the number of small cities concomitant with a strong increase in the number of large cities. To a lesser extent, the number of medium-size cities—those with between 0.5 and 1.0 million inhabitants—has also been diminishing, from 32 in 2000 to 28 in 2016, and is expected to decrease further to 23 by 2030. The decline in those two subgroups indicates that cities are becoming larger. The number of large cities, with populations between 1 and 5 million, continue to be the largest group, growing from 35 in 2000 to 48 in 2016, and is expected to increase by seven additional cities by 2030. GROWTH IN EMPLOYMENT For the 102 African cities studied, employment grew on average by 3.4 percent per year for the period 2000–16, with large variation across countries. The top 20 cities for job creation all had yearly employment growth rates ranging from 5.03 percent in Kumasi to 10.74 percent in Lusaka Africa GDP &Ranking South America GDP & Ranking Asia GDP & Ranking Continental Opportunity Africa is a truly emerging market from the year on year growth in GDP. Intra Africa trade is only at 11% which gives us more room to grow. FDI investment in Africa is on the increase year on year. Mobile Penetration is on the rise : According to research firm Ovum, the smartphone penetration rate will grow at 52.9% year- on-year. Currently there are 293.8 million smartphone users across the continent. Ovum predicts that there will be 929.9 million smartphones by the year 2021. This means increased data usage Population Data Total African Population : 1.26BN Total Asian Population : 4.43BN Total South American Population : 425m Youngest Population in the world Africa is in the top 5 Niger Uganda Chad Angola. Over 30 African countries have at least 48% of Population between 18 and 22. Aging Asia & South America: Some of the Oldest Population in the world are some Asia and South America countries i.e Japan, China, Columbia, Peru, Korea. The average age in Brazil is 31( This trend allows us to deduce its slowly becoming an aging nation Risk & Rewards Risk: 1, Changing political landscape in some African countries 2, Young infrastructure to push the growth rate 3, Currency Fluctuation in some countries 4, Grey regulatory frame work in some markets. 5, Young Population in some countries with low income earners. Rewards 1, Massive market opportunity with high return on low investment 2, Cost effective barrier to entry 3, Instant access to market via smart phone penetration. 4, Access to a Pan African market extremely fast. 5, Telco partnership and customer access un-paralleled in any other continent. NOSTRADAMUS: Key Predictions for Gaming 2017-2019 1. Growth in the Online casino market will be a key trend for growth over the next two years. 2. Lotteries in Africa will begin to take their rightful place as the strongest gaming product. We will have a Pan-African lottery by 2019 3. We will see more Pan-African sports companies with an influx of mobile money being a key driver. 4. Sports exchange will become a key part of growth for Pan-African sports companies. 5. Other key products like Bingo, Fantasy sports etc will become a key source of added revenue in East African markets most especially. 6. Nigeria will se a major shift to mobile betting as a key source of revenue by 2019. FUTURE OF GAMING IN AFRICA We strongly believe the future is mobile and digital . This does not mean retail will die completely. The use of social media and the affordable growth of mobile devices means more people will get their information and interact with their lives on mobile. Means more people will react to what they share and read on social media. This also means that brands who are forward thinking can leverage on the two Mobile(including telco, banks + payments) + Social and customized product = NEW DAWN FOR GAMING IN AFRICA. Even the retail experience will have to become more digital in-shop with a number of solutions that will allow users to have that digital experience while engaging in the shops. Convergence: Africa is a unique gaming market with a growing punter base. The ability for brick and motar gaming operation to find a convergence point with trick & motar will be huge in determining the growth of operators in the continent. .