Business
Africa growth fueled by expanding middle class
African middle class family in Lusaka, Zambia. PHOTO/Georgina Smith/The Guardian
A growing middle class has fueled Africa’s fast-growing consumer market driving the regional economy, according to a new report by research firm McKinsey.
Africa’s top 10 consumer markets now include Ethiopia, Nigeria, South Africa and Kenya.
Egypt, Angola, Morocco, Senegal and Ghana are also in the list that was released in Nairobi Monday in McKinsey’s ‘The changing face of the African Consumer’ report.
The consumer market study shows that consumers have become key drivers of Africa’s economy, which is expected to grow at an average of 5 percent in the next 10 years.
McKinsey says steady growth of Africa’s population, expansion of the middle class and rising optimism about the continent’s future will play a crucial role in determining the continent’s fate.
“Africa’s economic growth is creating substantial new business opportunities that are often overlooked by global companies,” said Damian Hattingh, an associate at McKinsey & Company.
He said that although natural resources remain important to the continent’s economy, an emerging middle class is crossing the threshold of pursuing basic needs to having discretionary spend.
