Nigeria software developers look inward as mobile gaming gains traction

Riding high on the wave of technological transformation sweeping across the continent, local digital start-ups are tapping into the quirks of daily life in Nigeria to create online and mobile games that are winning fans around the world, industry observers have said. PwC, consultancy firm, is forecasting significant growth in the gaming industry’s major markets. Nigeria, which has seen an explosion in digitally-enabled businesses, from film distributors to online retail, could grow from $71 million in 2013 to $176 million by 2018 – a compound annual growth rate of 20.1 percent, says PwC. Industry observers are of the view that indigenous developers were beginning to see the enormous opportunities there-in, with many of them channelling their energies towards developing locally-relevant mobile gaming services. “We are leveraging the African story-telling ability to create form factors and content for people all around the world”, said Abiola Olaniran, chief executive officer at Gamsole.

A host of Nigerian digital start-ups are already making significant strides in the development of locally relevant mobile and online gaming services. These technology companies, according to industry observers, are setting the tone for an imminent boom in mobile gaming. Nigeria’s Danfo minibuses are famous for their creative interpretations of traffic laws, weaving through gridlock at breakneck speed. Thanks to a Lagos-based gaming digital startup, ChopUp, more than half a million people have had a chance to drive one – or at least a simulated version – playing as lead character Kunle in the online game Danfo and its sequel Danfo Reloaded. ChopUp is one of a growing number of African computer development studios building game brands based on local stories and uniquely local experiences. These start-ups are also capitalising on the spread of broadband services, smartphones and tablets across the country. “Africa is rich in culture and stories,” said Zubair Abubakar, co-founder of ChopUp.

“Games are made from stories”, he further added. MALIYO Games is another Nigerian company, which shares the experiences of everyday Africans with a global audience through games. With titles such as Okada Ride, Aboki, Kidnapped, and Mosquitoes Smasher, MALIYO is indeed pioneering casual gaming, designed to be localised, engaging and entertaining. Industry observers told BusinessDay yesterday that these local software developers are already attracting foreign investors that are hungry to tap into Africa’s growing digital consumer opportunity. ChopUp itself has raised $100,000 in funding from venture capital investors. Another Nigerian gaming development studio, Gamsole, which focuses on producing mobile games for Windows-phone devices, received seed funding from accelerator 88mph and follow-on funding and mentorship from Microsoft’s “4Afrika” initiative.

This trend is not restricted to Nigeria alone. In nearby Cameroon, Kiro’o Games has also raised $142,000 by selling 180 shares – even though it is yet to release a single game. Guillaume Olivier Madiba is the CEO of Kiro’o. He and his team have created the first gaming studio in the Cameroon, and their debut title, Aurion: Legacy of the Kori-Odan – is still in development. Based on local legends, the game is unusual in that it is being built for PCs, rather than mobile devices. Africa’s digital revolution has been tied to the spread of cellphones. Fixed-line internet connections represent a small fraction of the total penetration of the internet, with most users’ principal interaction with internet coming through a handset. According to the McKinsey Global Institute, there are around 67 million smartphones on the continent today, rising to 360 million by 2025.

Although Kiro’o Madiba believes that the industry will grow across all platforms, there is a general consensus in the industry that mobile games are likely to be the fastest-growing, and ultimately largest market on the continent over the next decade. “Currently ‘hard-core’ gamers have already adapted to playing games on console, but the future is mobile as more and more casual gamers are coming up as a result of the increase in mobile penetration in Africa. This, in turn, will lead to a huge growth in the industry,” said Olaniran, whose games have been downloaded more than 9 million times. Olaniran also believes that the growth in the online gaming industry is closely linked internet connectivity. “Lowering the cost of broadband will create a lot of opportunities for us”, he further added. The Nigerian Communications Commission (NCC) says the number of internet users on the country’s telecom networks increased to 83.4 million as at February 2015.

However, developers caution that the evolving internet infrastructure – which is, in Nigeria, still slow and expensive – threatens to slow the rise of the Nigerian gaming market. This, combined with the absence of formal support for start-ups, means that entrepreneurs often face an uphill battle. “The digital divide is a real problem,” said Madiba. “Very few countries in Africa have access to quality internet; this is a big obstacle.” Access to talent, as well as to distribution channels for games, are also a major barrier, and developers can struggle to get their titles in front of consumers. “When games are developed and released getting players to know about them can be difficult and expensive,” ChopUp’s Abubakar said. Despite the difficulties, these early entrants to the African gaming industry are confident that the future is bright. Abubakar compares the industry to Nigeria’s world-famous film business, Nollywood, which is a multibillion dollar industry that has spread across Africa and throughout the African Diaspora worldwide.