The projected potential contribution could reach $712 billion by 2050.
The report revealed that driving this growth is a combination of increased access to faster quality Internet connectivity.
Currently, Africa is home to 700,000 developers and venture capital funding for start-ups has increased year-on-year for the past five years, with $2.02 billion in equity funding raised in 2019, according to Partech Ventures Africa.
"The digital economy can and should change the course of Africa's history,” said Stephanie von Friedeburg, Interim Managing Director, Executive Vice President and Chief Operating Officer of IFC.
“This is an opportune moment to tap into the power of the continent's tech start-ups for much-needed solutions to increase access to education, healthcare, and finance, and ensure a more resilient recovery, making Africa a world leader in digital innovation and beyond."
Digital start-ups in Africa are driving innovation in sectors, including fintech, healthtech, media and entertainment, e-commerce, e-mobility, and e-logistics, contributing to Africa's growing Internet gross domestic product (iGDP) — defined as the Internet's contribution to the GDP.
"Google and IFC have created this report to highlight the role the digital start-up sector is playing and other factors driving the continent's growth, in order to showcase and support the opportunities the continent presents," said Google Africa director Nitin Gajria.
An analysis within the report, conducted by Accenture, found that in 2020, the continent's iGDP may contribute approximately $115 billion to Africa's $2.554 trillion GDP (4.5% of total GDP).
This is up from $99.7 billion (3.9% of total GDP) in 2019, with the potential to grow as the continent's economies develop.
