The growing middle class of Africa is bumping up the demand for consumer goods as well as creating favourable investment opportunities for investors – according to financial services firm KPMG.
Benefactors of the surge in the continent’s consumption include South African food and clothing retailers.
According to Wole Obayomi, KPMG’s head of consumer and industrial markets in Nigeria – Africa’s rapidly expanding consumer market is set to be its largest investment and business opportunity for years to come.
He said that in 2030, Africa will account for over 40% of the global population growth. Obayomi commented, “With these numbers, continued improved gross domestic product (GDP) growth, rising national income and subsequently rising household incomes and purchasing power, will create immense opportunities on the continent for investors”
He believes that the youth will also be a firm driving force in Africa’s burgeoning consumer market. On Obayomi’s recommendation, investors should approach the market with affordable branded, low-to mid-market products. At a later stage, higher-end products that compete favourably in terms of price and quality, need to be introduced.
