Africa’s Rising Consumer ClassWhat are the opportunities?

Soula Proxenos – International Housing Solutions

Soula.Proxenos@intlhousingsolutions.com

Additional Economic Aspects

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Global Fortune 500 Companies: Companies based in emerging markets will account for >45% of the Global Fortune 500 by 2025, up from 5% in 1990 and 17% in 2010

Johannesburg and Cape Town are the leading business hubs in sub-Saharan Africa, with 60% of the region’s headquarters between them.

Growth: Africa – the world’s second-fastest-growing region is fueled not by resources but rather by a rising consumer market [45% of growth].

Optimism: Africans are exceptionally optimistic about their economic future; 84% say they will be better off in 2 years. Sub-Saharans are the most optimistic.

Concentration: 10 countries accounted for 81% of Africa’s private consumption in 2011: Algeria, Angola, Egypt, Ghana, Kenya, Morocco, Nigeria, South Africa, Sudan, and Tunisia.

Unrelenting Urbanization

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•Over half the world’s population is now urbanized; but sub-Saharan Africa’s proportion is only 37%.

•Spending among Africa’s urbanites is rising at two times the rural rate; Urban incomes are 80% higher than average countrywide figures.

•By 2020, urbanization will be 41%, which means 117 million more people in urban areas. [for South Africa 7.9 million people.]

•By 2020, Africa’s labor force is projected to add 122 million workers, creating a continent-wide labor force of more than 500 million.

•By 2020, more than half of African households are projected to have discretionary income, rising from 90 million in 2011 to 128 million in 2020.