A new report has warned that, despite Afrobeats’ global dominance, the economic gains are not being shared proportionately with Nigeria and African creatives.
The report by Olufunmilayo B. Arewa from the Centre for the Study of African Societies and Economies (CSASE) at Harvard Law School and titled ‘Afrobeats: Global Rise, Local Realities, and the Future of African Music Economies’ highlights how Afrobeats has recorded explosive digital growth while retaining historical patterns of extractive economic value.
According to the research, Afrobeats accounted for over 14 billion annual streams on Spotify in 2023, with streaming numbers rising by 114 per cent in 2024.
The genre is also estimated to have generated about $100 million globally in 2023. However, the study noted that only a fraction of this value reaches local artists, producers, and African businesses.
Authored by Olufunmilayo Arewa, a Nigerian-born Harvard alum and legal scholar, the report argued that Afrobeats scaled globally during a period of sweeping technological disruption — spanning MP3 downloads to modern-day streaming — and that these shifts weakened local negotiating power.
It said digital service platforms such as Spotify, Apple Music, YouTube Music and TikTok retain a disproportionate share of value, while Africa remains the lowest royalty-collecting region globally.
The report also highlighted aggressive expansion of global labels into Africa, including UMG’s majority stake in Mavin Records and Warner’s partnership with Chocolate City; low African ownership in publishing, touring, distribution and licensing; opaque royalty systems that make true earnings difficult to calculate; and weak contract enforcement due to costly litigation and slow legal systems.
Although Afrobeats stars continue to expand international visibility, including Burna Boy selling out London Stadium, Wizkid filling multiple O2 Arena dates, Tems topping US charts, and Rema’s ‘Calm Down’ crossing more than one billion streams, the report argued that cultural success has not translated into sustainable economic returns.
“Most discussions of Afrobeats focus on the growth of Afrobeats streams as a measure of Afrobeats’ success,” the report reads.
“Although streaming figures are an important measure of Afrobeats’ increasing reach, streaming figures alone may provide limited insight for measuring the full impact of any music genre.
“Consideration of the current status and potential future paths of Afrobeats must take account of several key factors, including (i) Music industry microtransactions, recording contract terms, and transparency, (ii) Global music industry institutional structures and sources of artist compensation, (iii) Afrobeats and global music industry trends and growth patterns; and (iv) Implications of creative industry institutional structures and trends for developing countries.”
The report concluded that without coordinated reforms, including stronger intellectual property systems, regional market integration, transparent royalty reporting and government-backed creative-economy policy, Africa risks losing long-term value.
It added that countries like Nigeria must treat the creative industry with the same strategic priority previously reserved for oil and telecoms if Afrobeats is to generate sustainable billion-dollar value locally.
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