Africa is becoming a magnet for foreign investment, with vast opportunities for consumer businesses. Tales of big opportunities off the back of Africa’s economic growth are not new.
While growth is slowing in some of the main emerging markets, Africa’s economy is going through an impressive transformation, with a rising middle class, increasing political stability, and improved economic governance. As a result, many African economies are transitioning from resource exporters to consumption markets.
Africa – A magnet for consumer business investment
Africa – The rise of the middle class
Africa – Leapfrogging technologies
The young African consumer – mobile ready
In this report, Deloitte assesses how the African market has developed, how perceptions of Africa are changing, and how African consumers are responding to a period of rapid economic growth. What it took to succeed in the past may not be what it takes to succeed in the future. Deloitte discusses the importance of developing a 21st century view of African consumer markets and makes the case for consumer businesses to seize this opportunity.
Many African countries are now transitioning from resource exporters to consumer markets. Where wealth in Africa has historically been concentrated within the elites, prosperity is starting to find its way to Africa’s broader population.
Rising numbers of African households with discretionary spending means that Africa’s consumer market is growing fast. Indeed the share of foreign direct investment (FDI) into Africa’s consumer-facing industries has risen continuously over the past decade, fuelled by rising demand from Africa’s emerging middle class.
While it is too early to call Africa’s recent growth the “African Miracle”, many hold the view that Africa, particularly Sub-Saharan Africa, is where southeast Asia was 30 years ago – on the cusp of a sustained economic boom.
Africa is 54 countries with different growth rates, infrastructure, trade agreements, tax regulations, culture, and levels of technological development. In order to succeed, businesses need to tailor their strategies in Africa to the specifics of each market or sub-region.
Africa offers opportunities to those prepared to adapt their business models to the region. Business prepared to innovate by adapting their channel, brand, and portfolio strategies; such as embracing high-volume low-value transactions to win early market share, or finding a niche in high-end products and services; are most likely to reap rewards in Africa.
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Africa: A 21st century view – The Deloitte Consumer Review
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Source: Deloitte | Audit, Consulting, Financial Advisory, Risk Management & Tax services and reports | Global
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