Deloitte is pleased to present the latest edition of the Deloitte Consumer Review, Africa – a 21st century view.
With the African economy growing at double the rate of advanced economies, we examine how the African market has developed, how perceptions of Africa have changed and how consumers are responding to a period of rapid economic growth.
* A magnet for consumer business investment – the African economy is due to grow by around 50% in the next six years. The retail sector overtook financial services to become the second most active segment for foreign direct investment in 2013.
* The rise of the middle class – with Africa’s rapid growth, the emerging middle classes are creating sizable consumer markets. By 2030, over half a billion Africans are projected to have transited to middle class status.
* Leapfrogging technologies – consumers are leapfrogging landline infrastructure and jumping straight into mobile technology. By 2017, 97% of Africa’s population will have a mobile subscription, with 30% having a smartphone.
* The young African consumer: mobile ready – there is strong potential for retailers to develop online, e-commerce businesses in Africa. Our survey of young African consumers found that mobile phones are their main source of access to the Internet, around one in five have bought a product or service with their mobile phone and seven in 10 use social media sites on their mobile phones.
* Quality and brands matter for Africa’s young consumers – when buying products, price is less important than quality for the young consumers surveyed. They prefer locally branded food and drink, yet international brands for fashion and cosmetics.
The Deloitte team will be delighted to discuss any of the themes presented in this publication in more detail. Should you have any queries or comments, please send an e-mail to email@example.com.