LONDON,
United Kingdom, -- The burgeoning gaming industry
in Africa has been thrown into stark relief during 2018 with countries
across the continent driving key measures to capitalise on emerging
sectors and authorities keen to discuss the direct and indirect
investment opportunities ahead. Talking ahead of the inaugural ICE
Africa (24-25 October, Sandton Convention Centre, Johannesburg), which
is set to provide regulators and operators with an ideal platform to
discuss the growing market, Amne Suedi, Principal at Shikana Law Group, a
law firm operating within East Africa and based in Kenya and Tanzania,
explores the where, how and who of investing in the diverse gaming
industry across Africa.
Why is there such a focus on Africa at this time?
As
a lawyer specialising in investment in Africa and being very active in
the gaming industry in Africa, I think this is an investment area that
has a lot of potential to grow further and to have an even bigger impact
on the countries that welcome this type of investment in terms of job
creation and of course the revenues that can be collected by the
tax/government authorities. Governments in Africa can leverage a lot
more on this industry as they can divert the earnings into development
of sports, entrepreneurship centres, etc.
Where do you see the big wins for the industry in the coming months?
Currently
the East African market is very exciting in terms of opportunities but
also the regulatory space is ever changing as legislators try and keep
up with technology. Representing companies in Tanzania, Kenya, Uganda I
can say that these markets are smaller than say the Nigerian market,
however with an immense growth potential. Definitely, there is room for
coming in and making a mark. I believe that the recent legislative
changes in Tanzania and Kenya and the imminent ones in Uganda should not
dissuade investors. There is always room for engaging with legislators
and with planning and a sound, reasonable strategy, investors can
achieve legislations that are not perfect (that does not exist), but
which are balanced and at least meet their investment requirements half
way. It has worked in other sectors, so there is no reason it cannot
work in gaming!
Who is currently targeting the market?
The
type of investors we see particularly in East Africa are not your
typical household names in gaming like Ladbrokes, GVC Holdings, but more
entrepreneurs who are going into gaming for the first time in Africa
because of the market and huge potential for returns. I think a lot of
people have to change their perception about investments in Africa. Like
everywhere else in the world, if you want excellence you have to pay
the price! It is not any different in Africa.
What’s the best place to start for operators looking to work in Africa?
How
to invest would be to seek a good legal counsel who can walk you
through the process. There are not so many experts in this field however
firms like Shikana Law Group have a proven track record of successfully
engaging with regulators and setting up sound investments in the gaming
space in East Africa. You also need to have a very good understanding
of the market you want to operate in. It is a mistake when investors
feel like they can use the same capital and business model in Kenya as
in Tanzania or Uganda since all these markets are very different. For
example, investing and launching mobile gaming in Uganda would be most
likely a disappointment since retail gaming is what is preferred by the
Ugandan punters. However, retail is becoming less and less in markets
like Tanzania. Of course, there are capital requirements and I always
get surprised when certain foreign investors feel like they can invest
USD$50,000 in gaming and get phenomenal ROIs while they are ready to
invest at least USD$1m in their home countries.
What’s your top tip for those interested in doing business in Africa?
I
think the number one advice I can give to investors coming into a
country in Africa to invest is – forget what you know from other markets
and treat each market as separate entity and do not compare.
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