The deal is a strategic investment that will enable the two companies to collaborate on a range of commercial opportunities. The two companies are currently in the “exploratory phase” of that partnership.

Cordel Robbin-Coker, CEO and co-founder of Carry1st, said talks with the Sony Innovation Fund began about eight to nine months ago and that Africa is the next big market for growth in the video game sector.

“When big companies like Sony have a really strong foothold in tier one and tier two markets, they start to think about where the next billion customers and gamers are going to come from, and Africa is the top market,” Robbin-Coker told CNBC in an interview.

Sony is entering an emerging gaming market with huge growth potential. According to research by Carry1st and venture capital firm Konvoy, the African gaming industry is expected to generate more than $1 billion for the first time by 2024.

Many gamers in Africa are buying consoles on the “grey” market, Mr. Robbin-Coker added, meaning they buy from vendors who import consoles from abroad to resell locally.

One aspect of Carry1st’s partnership with Sony is to help the gaming and entertainment giant expand PlayStation’s footprint in Africa.

Sony forecasts it will sell a record 25 million PlayStation 5 units in fiscal 2023, marking the best year for any PlayStation console in history.

Sony predicts Africa will be the next big market to drive PlayStation 5 sales growth.

Carry1st could use an e-commerce model for PlayStation in the African market, where sales are largely driven by in-store receipts from game console sales, digital downloads, free-to-play games, and in-app purchases.

Carry1st’s localized payment service Pay1st allows players in Africa to purchase games using bank accounts and credit cards. Game makers can monetize games on Carry1st through an online marketplace.