"If players are not consistently returning and genuinely enjoying the experience, no payment model will succeed"

• Mobile monetisation in Africa is driven more by execution gaps than structural market failure.
• Ad-supported models, especially rewarded video, remain the most consistent revenue driver in the region.
• Low purchasing power and payment friction continue to suppress in-app purchase conversion rates.
• Retention is the primary determinant of whether monetisation strategies succeed or fail.

The challenge facing mobile games in Africa is not demand but monetisation design. Millions of players exist across the continent, yet revenue remains constrained by payment friction, low purchasing power and engagement systems that have not fully matured. 

We speak with Maliyo Games CEO Hugo Obi about why execution matters more than structural limitations, how retention drives monetisation outcomes and why Africa’s gaming opportunity is still far from fully tested at scale.

This interview is part of the ongoing debate in Africa's games industry on monetisation and which platforms offer the best opportunities. This was sparked by our interview with Masseka Game Studio founder Teddy Kossoko, who shared his views on the challenges of monetising players in the region.  

PocketGamer.biz: Do you believe mobile gaming monetisation in Africa is structurally struggling, or is the problem more about execution and business model? 

Hugo Obi: I don’t believe the African mobile gaming market is structurally broken. Mobile game monetisation is challenging globally, but those challenges are amplified in Africa due to lower purchasing power and payment constraints.

That said, I believe many of the current limitations are tied to execution and business model design rather than structural impossibility. We still have work to do around product stickiness, pricing architecture, payment integration, and long-term player engagement strategies.

The ecosystem simply hasn’t matured enough for us to conclude that the market itself doesn’t work. At Maliyo, our focus is on building culturally relevant games with strong retention loops and experimenting deliberately with engagement and conversion strategies. We believe the real opportunity lies in iteration and scale, we haven’t yet fully tested what’s possible. 

It’s often said that most Africans don’t pay for entertainment, including games. In your view, what monetisation models are actually working in practice today? And can ad revenue provide sustainable returns in where in-app purchases struggle to convert? 

It’s true that Africa has the lowest subscription penetration globally. However, this is driven by several structural factors - limited card support, payment friction, and inconsistent platform acceptance - not simply unwillingness to pay.

There is also a behavioural component: recurring digital payments are still relatively new across many markets. Consumer habits take time to evolve. In practice, ad-supported models are currently the most reliable revenue driver, particularly rewarded video ads.

They allow users to “pay with attention” rather than cash, which aligns better with current economic realities. While ad revenue alone may not yet match mature markets in ARPU, it can provide meaningful and scalable returns when paired with strong retention. The key is creative monetisation design - blending ads, light IAP, sponsorships, and alternative payment methods to unlock value from engaged users. 

Is the “PC has higher purchasing power than mobile” argument convincing to you, or does it ignore scalability constraints? 

The PC and mobile markets serve fundamentally different audiences and use cases, especially in Africa. While PC users may have higher purchasing power on average, the addressable market is significantly smaller. Mobile, on the other hand, offers unmatched reach and accessibility. It fits seamlessly into everyday life, people are mobile-first, always connected, and often on the move. 

At Maliyo, we prioritise mobile because it aligns with both infrastructure realities and cultural behaviour. However, we are open to expanding our IP across platforms where it makes strategic sense. Ultimately, our goal is to maximise reach and long-term IP value, not just optimise for short-term purchasing power. 

What are the biggest monetisation blockers you face in your market: payments, ARPU, retention, CAC, ad revenue, or something else? Retention is the foundation of monetisation. 

If players are not consistently returning and genuinely enjoying the experience, no payment model will succeed. We cannot monetise users who aren’t spending time in our ecosystem. So our first priority is building games that are fun, culturally resonant, and habit-forming.

Once we establish strong engagement metrics, monetisation becomes a design challenge rather than a structural barrier. In our market, engagement is the multiplier that unlocks everything else. 

Do you think Africa’s mobile gaming revenue is overstated because of betting and gambling being grouped into broader industry figures? 

Africa has over 300 million active players. A market generating close to $2 billion annually is not unrealistic. Whether that number is slightly overstated due to betting and gambling inclusion is less important than one key fact: there is meaningful economic activity happening. The more critical issue is that local developers are capturing very little of that value. 

Even if total revenue were half or a quarter of current estimates, the opportunity gap would still be significant. Rather than debating the exact size of the market, we should focus on the fact that it remains largely undominated by strong local IP. There is a real, untapped opportunity. The studio that finds the right product-market fit at scale will unlock substantial long-term value.