“Kenya, Ethiopia, and Uganda each present unique dynamics”

As a consultant at Sattam Solutions, you’ve participated in many projects across Africa. Which one do you consider the most satisfying, and why?

One of the most satisfying projects I participated in was helping a client establish a sustainable online betting platform in Ethiopia. The market presented unique challenges, including restrictive regulations, limited payment solutions, and infrastructure hurdles. I had to collaborate with local partners to understand the customer expectations before settling for the platform. Seeing the platform not only thrive but also positively impact local employment and revenue generation for the investor was incredibly rewarding. It showcased the power of innovative, localized solutions in unlocking new markets.

You work in markets like Kenya, Ethiopia, and Uganda. What differences do you notice between them, and which poses the biggest regulatory challenges?

Kenya, Ethiopia, and Uganda each present unique dynamics. Kenya boasts a mature iGaming market with a robust regulatory framework, but the frequent introduction of new taxes has been the biggest challenge for new and existing operators. Ethiopia is an emerging market with strict licensing and operational requirements; making entry is very complex but rewarding for those who navigate its intricacies.It presents a great opportunity because of its huge population. Uganda, on the other hand, balances moderate regulation with steady growth potential. Uganda is experiencing a shift from the retail operation to the online operation.

Among these, Ethiopia poses the biggest regulatory challenges due to its stringent licensing process and the need for strong local partnerships. However, operators who invest in understanding the local culture and regulatory expectations always build long-term success in the region.

What steps should companies take to effectively enter new markets like Zambia or the Democratic Republic of Congo?

Companies must prioritize three key steps:

1. Market Research: Conduct thorough research to understand local preferences, marketing liggo, regulatory requirements, and payment landscapes.

2. Localization: Do not plan to launch in any particular African country if you have no plans to localize your Go-to-Market strategic plan. This is the game changer.

3. Compliance and Adaptation: Ensure full compliance with local laws while adapting products to fit cultural and linguistic nuances. For instance, incorporating widely accepted payment solutions like mobile money will significantly boost user adoption in markets like Zambia or the DRC.

How is responsible gaming addressed in the African market? Should companies introduce new initiatives to promote player responsibility?

Responsible gaming is gaining traction across Africa, with regulators increasingly mandating measures like self-exclusion options, age gating,and betting limits. However, the industry still has room to grow in this area.

Companies should proactively introduce initiatives such as educational campaigns, AI-driven player behavior monitoring to identify problematic patterns, and collaborations with mental health organizations to offer support to at-risk players. Promoting responsible gaming is not only an ethical obligation but also a way to build trust and long-term loyalty with players.

Are new payment methods one of the key elements for the future of iGaming in Africa?

Absolutely. The success of iGaming in Africa hinges on seamless, localized payment solutions. While mobile money has been a game-changer, the emergence of cryptocurrency and instant payment gateways offers exciting opportunities now and in the near future.

I would advise operators to prioritize integrating multiple and secure payment options to position themselves as leaders in the market, offering solution to a broader target audience and enhancing user experiences.

If you had to predict the biggest challenge for the industry in Africa over the next few years, what would it be, and how should companies prepare for it?

One of the most pressing challenges facing the iGaming industry in Africa is the introduction and consistent increase of taxes by various governments. These measures are often aimed at recouping more revenue from the sector but, unfortunately, may inadvertently stifle its growth.

For instance, in late December 2024, Kenya increased its excise duty on stakes from 12.5% to 15%. This tax is charged on the stake amount before a player even wagers, significantly reducing the overall appeal of regulated platforms. Such policies risk pushing operators and players toward unregulated markets, ultimately undermining the industry’s sustainability.

Similarly, Ethiopia’s recent introduction of taxes on both deposits and withdrawals has been a significant blow to the sector. This dual taxation system places a heavy burden on players and operators alike, discouraging engagement and profitability.

As I conclude, it is my hope that regulators across Africa can collaborate through a unified retreat or forum to harmonize policies and share best practices. Such an initiative would foster a more balanced environment that benefits all stakeholders—operators, service providers, regulators, consultants, and governments—while unlocking the industry’s full potential across the continent.