Business
Africa growth fueled by expanding middle class
“The consumer opportunities are real and have been reaffirmed.”
The report shows that early entry into African economies provides an opportunity for global businesses to create markets, influence customer preferences, and establish brand loyalty.
“Profit margins in Africa are some of the highest in the world and as more players come into the market the gap will narrow down,” said Mr Hattingh.
The Mckinsey study indicates that opportunities in for consumer goods companies are opening up fast in many African economies and is expected to fuel long-term growth.
As Africa realises economic growth, the continent’s household spends are expected to expand and drive higher consumption in consumer-oriented sectors.
Economic growth in Sub-Saharan Africa remains strong and is expected to rise above the 4.9 percent recorded in 2011, according to the World Bank.
The continent’s growth, excluding South Africa, which accounts for a third of Africa’s gross domestic product (GDP), is projected to be 5.9 percent.
Source: Business Daily Africa
