In a strategic move, Afrirent Holdings, a multi-disciplinary South African powerhouse, is set to explore new horizons in the thriving lotteries market of Malawi.
Established in 2003 and celebrating its unique position as one of the few black-grown and owned businesses, Afrirent Holdings has, over the 20 years, demonstrated unparalleled specialisation and globally relevant expertise in the transport and logistics and tourism sectors through Afrirent Mobility and Indalo Hotels and Leisure divisions
The intended expansion into the lotteries market signifies a bold step towards embracing new opportunities in the business landscape of Malawi.
Senzo Tsabedze, founder and CEO of Afrirent Holdings, is the driving force behind the company’s innovative ventures.
Fuelled by compelling statistics and a forward-thinking mindset, Tsabedze aims to initiate opportunities within the Malawi lotteries industry by contributing his management expertise in creating and taking advantage of business opportunities that empower stakeholders and community alike.
Malawi’s decision to legalise gambling in 1996 has paved the way for a thriving gambling industry, with lotteries and sports betting playing a significant role in income generation and economic growth.
The majority of Malawi’s gambling profits stem from national lotteries and sports betting.
At present, Malawi’s sole lottery operator, Premier Lotto, obtained licencing from the National Lotteries Board in 2019. The licence was granted for a five-year term.
With Premier Lotto’s current licence set to expire soon, this juncture creates a strategic opportunity for Afrirent Holdings to explore innovative approaches in the sector.
Statistics paint a compelling picture of the industry’s potential for growth and economic impact. Approximately 15 million individuals engage in lottery activities regularly in Malawi, providing a consistent and significant stream of income for the industry.
Tsabedze’s visionary outlook aligns with the broader growth trajectory of the African gambling industry. The online gambling sector in Africa is set to attain a remarkable revenue of US$1.85 billion in 2024, projecting an expected annual growth rate (CAGR 2024-2028) of 6.28%. This growth is anticipated to propel the market volume to US$2.36 billion by 2028.
Concurrently, the online lottery market is forecasted to generate revenue of US$249.20 million in 2024. Embracing a positive outlook, the online lottery sector is anticipated to experience an annual growth rate (CAGR 2024-2028) of 6.50%, culminating in an estimated market volume of US$320.60 million by 2028.
One of the defining trends in the African online lottery market is the rapid adoption of mobile technology. The widespread availability of smartphones and affordable data plans has empowered millions of Africans to gain access to the internet. This shift in connectivity has become a game-changer for online lottery operators, enabling them to tap into a larger customer base.
Afrirent CEO’s visionary leadership in exploring the potential of Malawi’s lotteries industry reflects not only an astute business strategy but a commitment to leveraging the benefits of a regulated gambling sector for Malawi’s economic growth. Tsabedze’s forward-thinking approach positions him to play a role in the Malawian lotteries sector as a catalyst for economic prosperity and community development.
Afrirent Holdings recognises the dual nature of gambling – its potential for stimulating economic growth and its potential for harm. While the company is attuned to the risks associated with gambling, it also sees the industry’s capacity to contribute positively to economic development. Responsible and regulated gambling can serve as a significant economic driver. Through taxation, job creation, and contributions to public services, the gambling industry has the potential to inject funds into the economy. This economic stimulation, in turn, can support infrastructure development, education, and healthcare, benefiting local communities and contributing to overall national growth.
