Africa Rising has been identified as a global megatrend in the latest Euromonitor International’s Megatrend report series.
The report provides “thought leadership on trends with the strongest influence on the world of tomorrow”.
With regards to the continent, the report analyses the increasing significance of the African market, the diversity of African consumers as well as opportunities and challenges across key consumer industries in Africa.
And for entrepreneurs doing business on the continent it gives insight into how to develop products and services tailored to local, regional and country-specific preferences and how to identify opportunities for growth in online retailing and m-commerce.
Below are key findings of the report:
A growing population
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 54 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.
Local companies offer strong competition: Local companies are seasoned experts with a wealth of knowledge, which give these companies an advantage over global competitors. Lessons can be learnt from their approach to business, or partnerships should be considered.
The role of tech
Growing technology in the region provides new ways of reaching consumers: Africans are increasingly connected, with high mobile penetration – reaching one billion in 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.
A long-term approach
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.