AFRICA’S business events sector, part of the global Meetings, Incentives, Conferences, and Exhibitions (MICE) industry, is seeing robust growth despite inflationary pressures and economic hurdles. The industry, valued at $16.6bn in 2023, is projected to reach $65.6bn by 2032, with a compound annual growth rate (CAGR) of 16.8 percent, outperforming growth rates in other regions such as the Americas, Europe, and Asia-Pacific.
Africa’s MICE sector faces inflationary pressures
Although the outlook is promising, inflation poses a significant challenge for Africa’s MICE sector. The pandemic intensified inflationary pressures, disrupting supply chains, devaluing local currencies, and raising import costs. As a result, the cost of lodging, transport, catering, and convention services in the MICE sector has increased by 15 percent.
In 2023, Africa’s inflation rate stood at 18.4 percent, far above the global average of 6.8 percent. This has undermined the competitiveness of African countries in securing international business events, making it more expensive for organisers and delegates alike. High operational costs are a key barrier to growth, and event organisers are under increasing pressure to find innovative ways to reduce expenses, such as incorporating group fares into meeting programmes.
Experiential travel and sectoral growth drive expansion
Despite these economic challenges, Africa’s MICE industry continues to grow, driven by the rising popularity of experiential travel and sectoral diversification. The demand for unique, immersive experiences has boosted the appeal of boutique hotels, eco-lodges, and themed accommodations, helping to attract both domestic and international events.
The meetings segment holds the largest share of Africa’s MICE market at 60.4 percent, followed by conventions (19.5 percent) and incentives (12.7 percent). Notably, the incentives market, which rewards employees and clients through travel experiences, is the fastest-growing segment with a CAGR of 17.2 percent.
Key sectors contributing to the growth of Africa’s MICE industry include information technology (25.7 percent), agriculture and food (19.8 percent), and finance (18.5 percent). These industries are driving demand for business events, ensuring continued expansion despite inflationary hurdles.
South Africa leads the continent’s MICE market
South Africa remains a dominant player in Africa’s MICE industry, hosting 70.8 percent of its events from international sources. The country’s strong sectors—information technology, agriculture, finance, and hospitality—ensure its position as a leading destination for business events. South Africa’s MICE industry is expected to grow at a CAGR of 16-17 percent through 2032, driven by both international and domestic segments.
Overcoming challenges to maintain growth
To maintain its strong growth trajectory, Africa’s MICE sector must find ways to mitigate the impact of rising costs and inflation. By capitalising on the growing demand for experiential travel, fostering industry diversification, and tapping into the potential of key sectors, Africa’s MICE industry can continue its upward path. Innovative cost-saving strategies, coupled with the continent’s unique appeal as a destination, will be crucial in overcoming these challenges and sustaining growth in the years to come.
