In celebration of Africa Month, Euromonitor International releases its latest insights on the Continent.
According to Euromonitor International, Africa is the world's second most populous continent in the world. Its growing young population is expected to command nearly 20% of the world’s population by 2025.
Africa’s 55 independent countries are home to a diverse population of different income groups, religions, races, customs and languages. This diversity requires a more granular and regional approach for a successful and sustained market entry.
Africa’s two largest economies, Nigeria and South Africa, account for nearly 50% of the continent’s GDP in 2017. However, by 2030 these two countries will represent just 37% of Africa’s total GDP, demonstrating the rising economic importance of Africa’s emerging markets. Ethiopia and Rwanda are expected to be the two fastest growing economies in Africa by 2030. Africa will show the highest growth in disposable income globally over the forecast period to 2030, at 9% CAGR.
Euromonitor International’s Megatrends report, “Shifting Market Frontiers: Africa Rising” identifies the key existing and emerging trends in the Continent:
- African population growth, increased urbanisation and expenditure presents opportunities Africa is the world’s second most populous continent. Its growing young population is expected to command nearly 20% of the world’s population by 2025. Equally, rapid urbanisation and fast-growing consumer expenditure provides long-term opportunities.
- Consumers are diverse and a “one size fits all” approach will not work Africa’s 55 independent states are home to a diverse population of different income groups, religions, races, customs and languages. This diversity requires a more granular and regional approach for a successful and sustained market entry.
- A flexible long-term strategy is required to succeed in the continent: despite signs of growing GDP and consumer expenditure, the challenges of the continent, such as lack of infrastructure, paucity of skills and political instability, require a flexible and long-term approach.
- Africans are increasingly connected, with high mobile penetration - reaching one billion in 2017. By 2030, Africa will have 16% of the world’s internet users, which reflects growth of over 260% from 2017.This offers opportunities in various consumer industries, which include finance, apparel, food and drink, and beauty and personal care.
- Modernisation of retail alongside informal retailing: Modern retail outlets are increasing at a rapid pace. However, a large proportion of retailing still takes place in traditional stores, open-air markets, street kiosks and even at the side of the road. Understanding how these markets operate and why consumers choose these channels is important.
To find out more about the impact of the growing young population in Africa, please visit: https://blog.euromonitor.com/2018/04/key-facts-africas-growing-young-population.html