Sub-Saharan Africa, it says, “presents exciting opportunities that are just starting to open up, supported by rising household incomes, fast urbanization, and a growing middle class.”
Those brands are poised to take advantage of a projected boom in Africa’s consumer spending. Consulting and research firm McKinsey estimates that households in Africa will spend $1.4 trillion in 2020 (pdf) if GDP growth stays consistent, compared to $860 billion in 2008. That’s not guaranteed (paywall) of course, but it’s certainly possible.
There are caveats. While Nigeria and Angola have some of the fastest-growing middle classes in the world, both still have significant wealth gaps, not to mention economies that are heavily reliant on oil (paywall)—and therefore subject to its volatility. Nigeria is currently struggling through a fuel crisis that has paralyzed the country. Botswana, the top-ranked African country, has a population of just over 2 million—not a huge customer base. Political instability and economic corruption remain serious issues in much of sub-Saharan Africa.
Lux Afrique freelance writer