American record labels scramble for Africa’s $80 billion music sector

BY EMBUKANE LIBOSSO

The attention on Africa’s music and artists from global players is shaping up! Africa’s widely fragmented music sectors now makes it one of the last true music growth opportunities in the world according to an article on The Forbes by Kori Hale, CEO of CultureBanx.

One of the chapters in our history curriculum is called “The Scramble for Africa and Partition.” The chapter looks at European powers’ invasion, occupation, colonization and annexation of African territory. With the dawn of independence, the scramble took a new dimension in what many analysts termed as a “New scramble for Africa.” The world’s superpowers competing for the control of the abundant natural resources of the motherland.

Another scramble is happening in the music sector, but African musicians are successfully navigating the situation and the international music labels are listening. Kenya’s beloved boy band, Sauti Sol, after signing an historic deal with Universal Music Africa (UMA) for the Midnight Train, termed their deal with UMA as a milestone. The label sat down and negotiated the deal with them, taking into consideration their pleas.

Now more than ever, American record labels are increasingly looking to Africa. Warner Music Group inked a deal with Afrobeats label Chocolate City. Universal Music Group inked a multi-year licensing agreement with Boomplay, Africa’s top music streaming platform, while Sony Music’s RCA record label with names like Davido and Wizkid on their list are extending operations in the continent. Def Jam recently announced a flagship roster of artists including established names like Cassper Nyovest, Nasty C, Nadia Nakai and Boity (all South Africa) and from Nigeria, Afrobeats act Larry Gaaga.

With the sound of the Shekere (a Yoruba percussion instrument), Africa is celebrating. The independent African pop music business is having a renaissance. From Luanda’s Kuduro, to Accra’s Azonto, Nairobi’s Gengetone to Soweto’s Gwarra and back to Lagos’s Afrobeats, the boom is being fueled by social media, YouTube, a younger generation and untapped talent.

While music business has been in decline over the years, what makes Africa’s market special? Goldman Sachs estimates recorded tunes in Africa will reach $80 billion by 2030. Kori Hale, CEO of CultureBanx continues to note that more than 60% of people in Africa, where global music consumers are poised to triple, are under 25 years old, and heavily rely on mobile phones to do everything including streaming music. This means that this group of global music listeners are ripe to become huge consumers.

Sales in music in Africa were up by 8.1%, reaching $17.3 billion last year, according to industry trade body, IFPI research release. Yet, all this happened while the formal, established business was going through its worst years worldwide. Many believe that African artists, given the similar reach and clout accorded by international labels, can go toe to toe with Europe and North America’s most revered.

But even before the big labels, Mr. Eazi was deliberate on his attempt to get Africa music global through the emPawa initiative. emPawa initially sprang from Mr. Eazi’s desire to replicate a key moment in his career. “He always told us the story of the $1,000 investment someone made in his career and how that made a huge difference,” says E-Kelly, a producer and close collaborator who serves as one of emPawa’s mentors. “If he can give other artists a good kickstart, they can find their feet from then on.”

Music streaming is also on the spotlight in Africa. Whereas Boomplay, partly owned by China-based Transsion Holdings, Africa’s largest mobile phone distributor, enjoys the big percentage, Apple Music recently announced an expansion. Apple Music, previously available in only 13 African countries, including: Nigeria, Ghana, Kenya and South Africa, will now be accessible in 17 additional African countries. These include Algeria, Tunisia and Tanzania, rivaling Spotify which is available in only five African countries (Algeria, Egypt, Morocco, South Africa, and Tunisia). Apple Music last week launched its first radio show in Africa. “Africa Now Radio with Cuppy” debuted on Sunday and featured a mix of contemporary and traditional popular African sounds, including genres like Afrobeats, rap, house, kuduro and more. Special guests on the show were Queen Sono, actress Pearl Thusi and Kiddominant, a Nigerian record producer and DJ.

Chinese social media app TikTok, which was instrumental in combining trendiness by a Kenyan content creator, Azziad Nasenya dancing to Mejja and Femi One’s “Utawezana” propelled the song to a million views in six days. The app is fast gaining recognition with music lovers in the continent.

“We’ve seen huge success with Latin music going global and we believe the same can happen with African music,” Universal Music’s executive VP of market development Adam Granite says.

While music in Africa is so sentimental and spiritual. it remains a people’s self-image, a story teller’s confidence, and, by extension, our chances for future success. The scramble is on!