Sub-Saharan Africa holds remarkable potential for companies looking for new growth markets. The region as a whole is home to 861 million people, and had a combined GDP of US$1,268 billion in 2012. Despite some notable challenges within the region, Africa is benefitting from its wealth of natural resources, a new era of stability, inward investment and economic development. This is laying the foundations for an increasingly important consumer market and with it huge opportunities for companies with the right goods and services and an appropriate strategy. As in all emerging markets, a one-size-fits-all policy will not work. The region is complex and challenging, home to a diverse range of economies and consumer markets and strategies need to be adapted to suit local preferences. Sub-Saharan Africa is the second fastest growing region in the world in terms of economic growth. In 2013, WiTTS Research forecasts that 5 of the top 10 most rapidly expanding economies globally will be Sub-Saharan African. One of the biggest advantages Africa holds is its young and growing demographic profile, particularly important in the context of global ageing. 70% of the population of Sub-Saharan Africa is under the age of 30 in 2013. With the world’s most rapidly expanding and urbanising population, the total populace is set to exceed 1 billion by 2019, more than Europe and Australasia combined. This is feeding through to improving living standards and growing consumer expenditure. In 2020, the Sub-Saharan consumer market will be worth US$1,134 billion, equivalent to US$1,088 per capita – the same per capita figure as China in 2005. African consumers are diverse but key trends include a rising middle class searching for convenience, while still strongly connected to their traditional roots and the increasingly connected young African interested in brands and status.
Posted on: Sat, 10 Aug 2013 20:21:58 +0000
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