Exploring the resilience of the creator economy amid economic downturns in Africa
Exploring the resilience of the creator economy amid economic downturns in Africa
In an era dominated by social media and digital platforms, the creator economy has emerged as a force to be reckoned with. From influencers and YouTubers to podcasters and bloggers, a new wave of individuals has harnessed the power of content creation to establish lucrative careers, build passionate communities, and generate substantial income streams.
But as the global economy grapples with the uncertainties of recessions and economic downturns, with inflation hitting its highest point since 1981 in 2022, and the likelihood of global supply chain challenges persisting throughout 2023 according to experts, it prompts us to unravel the true resilience of the creator economy.
According to a recent article published on Forbes, two-thirds of economists predict a recession to occur this year. This global economic concern extends beyond borders and includes Africa. In addition, the New York Times projects that the unemployment rate may reach 4.6% by year-end. These indicators raise apprehension about the potential decline in consumer spending, and Africa is not immune to its effects.
Some experts argue that the creator economy possesses a particular susceptibility to economic downturns due to its inherent competitiveness and volatility. Content creators, in particular, face the risk of jeopardizing the livelihoods and lifestyles they have painstakingly established when the economy experiences a decline. However, these same reasons have also been considered to have rendered it adaptable and resilient in the face of adversity. The rapid expansion of mobile internet services and the decreasing costs of smartphones has provided a gateway for millions of Africans to join the digital revolution. Creators are leveraging their skills, creativity, and expertise to tap into a vast pool of global consumers, generating multiple income streams that were previously unattainable.
Does the creator economy truly demonstrate resilience?
In the midst of economic challenges, Africa’s creator economy is emerging as a beacon of resilience, showcasing the ingenuity and determination of African individuals to transform their creative talents into viable sources of income. With digital connectivity sweeping across the continent, African creators have harnessed the power of online platforms to captivate global audiences and carve out a niche in the booming creator economy. From social media platforms like Instagram and Twitter to e-commerce storebuilder that helps creators monetise their audience directly, like Selar.
According to CEO Selar Douglas Kendyson, “Due to the downturn, everyone’s budget is pretty slim, from consumers buying from creators to brands partnering with creators, so it’s important that creators diversify their revenue streams with as many options as possible. That eventually leads to fewer resources for creators to fund projects.”
While no industry is entirely immune to economic downturns, the creator economy has proved remarkable resilience and adaptability. Through diversified revenue streams, community building, and the ability to forge deep connections with audiences, content creators have demonstrated an unparalleled ability to navigate economic turbulence.
Digital platforms like YouTube, Instagram, and TikTok have become virtual stages where creators showcase their talent and build a loyal following. These platforms offer avenues for revenue generation through advertisements, brand partnerships, merchandise sales, and more. African creators have also embraced innovative strategies, such as crowdfunding campaigns, sponsored content, and paid memberships, to diversify their income streams and weather economic downturns.
Digital creator and CEO of Geneza School of Design mentioned, “With the increasing acceptance and popularity of online social platforms, new opportunities and job roles have emerged. This dynamic shift has created employment prospects for more individuals and fostered the creation of innovative business ideas, products, and services that generate employment opportunities.”
“The beauty of these roles is that many can be performed remotely, making them particularly well-suited for economic downturns. Digital creators, especially online school educators, play a pivotal role in providing accessible and inclusive education opportunities, especially in times when physical schools face limitations. By leveraging digital platforms, they can reach a wider audience, including individuals in remote areas or facing various barriers to education,” she added.
Beyond personal success, African creators are using their influence and earnings to uplift their local communities. Many have embraced social entrepreneurship, investing in education, infrastructure, and skills training. By empowering others to join the digital economy, these creators create a ripple effect of economic growth and foster sustainable development from the grassroots level.
From a business perspective, it becomes paramount to recognise the significance of resilience in the creator economy during such challenging times.
Douglas KAendyson said, “The beauty of the creator economy is that individuals and businesses share their knowledge on the internet or create entertainment for a living. These two things never really go out of fashion, so they’ll always be needed. Budgets might be slim and people might have lesser spending power but that’s where creators need to adapt to the changes and stay alive.”
“Also worth noting is, before the downturn, a key trend we noticed amongst our creators (also published in our African creator report) is creators are informal employers of labour, employing so many internet skills today, and in this downturn where so many people are losing their regular jobs for various reasons, a lot of people are now looking up to other sources of income. Hence, for creators that can still create value and earn a decent living, they can still provide for themselves and others they employ, whether on a full-time or part-time basis,” he added.
Innovations and Technologies Driving the Resilience of the Creator Economy?
As the creator economy continues to evolve, resilience becomes paramount for creators aiming to thrive amidst rapid changes. Innovations and technologies such as subscription platforms and collaborative creation tools empower creators with new opportunities, increased monetisation avenues, and enhanced audience engagement. By harnessing these technologies, creators can adapt, overcome challenges, and build sustainable careers in the dynamic and ever-expanding creator economy.
According to Douglas Kendyson, “Technology has always been a big part of the creator economy. For the most part, the creator economy runs on the internet, and the internet allows creators to reach more people faster than physical/offline setups. With better access to the internet and smartphone penetration getting better in Africa, more people can access the internet at an affordable cost which in turn means more possible paying customers that help with growth.”
While technology solutions offer immense potential for resilience in the creator economy, challenges in adopting and implementing these innovations during economic downturns must be addressed.
“The challenges for creators are endless, but the top of my list would be power and the internet. For good work to be done, the internet and electricity must be affordable and available to power devices. Unfortunately, these challenges persist for content creators in Nigeria and Africa in 2023. Uploads need to happen, skills need to be learned, and all this happens online,” Kendyson said.
“On a positive note, there’s a lot of improvement in the cost of data around the continent with more providers making better plans, but there’s still more work to be done,” he mentioned.
“Upskilling is also an interesting challenge because many creators are self-taught, and while that has its perks, many creators get to make mistakes that could’ve been avoided or do not always consume the best information, and it’d be really great if they’re more systems in place to upskill creators and teach them the best way to create and run a business because there’s also a business side of being a creator” He added.
Businessinsider.com
