Market Trends of Africa Smart Card Industry
This section covers the major market trends shaping the Africa Smart Card Market according to our research experts:
Healthcare and Government Segment is expected to witness highest Market Share
- The growing digitalization in Africa is driving healthcare and government sectors to eliminate manual procedures and implement smart cards for various purposes. For instance, MasterCard recently reported that the government of South Africa registered a reduction of payout by 20% after switching to biometric cards for the distribution of financial benefits by avoiding fraud, double-dipping, and the collection of benefits posthumously.
- In January 2022, the Department of Home Affairs announced that South Africa had started developing a biometric-based digital identity system dubbed NIS to enhance access to various services for citizens and foreign nationals residing in the country. Such developments indicate the growing demand for smart cards in the Government sector.
- Africa currently has five projects in health care amid the pandemic. The healthcare projects are CapitalMed Medical City, Egypt, 700 Beds hospital in Algeria, Cote d'Ivoire Regional Hospitals, Ivory Coast, Komfo Anokey Teaching Hospital, Ghana, and Zambia district Hospitals Project. Such developments in the healthcare sector are expected to drive the demand for smart cards to verify medical records and staff, among others.
- Further, amid the pandemic, e-health care in the region is on the rise, and according to to Disrupt Africa, by the end of 2021, the region is expected to have 55 funded e-health startups. This will drive the demand for smart cards as many healthcare firms are associating with smartcard-based e-health networks to eliminate the need for old and slow paper-based procedures and increase the reliance on low-cost interactive patient health records.
South Africa is Expected to Witness Highest Market Share
- South Africa is one of the largest countries in Africa and is considered one of the emerging upper-middle-income economies worldwide. This has given rise to digitalization, and the banking sectors in the country have been progressing toward digital transformations. This is expected to drive the demand for smart cards in the country.
- The institutional sectors have also been gaining momentum for digital transformation. For instance, in February 2022, The Deputy Minister of Home Affairs launched the Matric Smart Id Card in Mbazwana, north of KwaZulu-Natal.As a part of the program, the government chooses schools in the area to issue the Smart ID Cards. Thus indicating the demand for smart cards in the country.
- Further, the transportation sector in the country has decided to eliminate the use of laminated driving licenses and replace it with Smart Card from October 2023. According to the transportation minister, the smart card will also play a role in identifying documents. Such developments indicate the demand for the smart card in the country and create opportunities for the vendors in the market.
- Moreover, according to Statistics South Africa, the total population of individuals aged 15 to 19 years stands at 4,910 thousand, and individuals between the age of 20 to 24 years stand at 4,739 thousand. With the rising population, new license registrations are expected to increase. Therefore with a license issued in the form of a smart card from October 23, the demand for smart card manufacturing is expected to increase.