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Africa Australia Council (AAC) | RETAIL
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 investment opportunities in Africa

Retail is a fast growing sector in the continent, experiencing exceedingly impressive growth rates, and contributing to the income distribution expanding Africa.

With every country there are differences in consumer-consumption environments; industry leaders must understand their target countries, in their growth rates, total population, urbanisation growth and their consumer power, in a highly fragmented sector.

When taking into consideration the consumer behaviour favourable to retail investing, Nigeria, Ethiopia, and the DRC have the most favourable consumption spending growth, however mainly stemming from their large population rates.

Urbanisation growth rate predictions by RMB Global Markets 2015/2016, place Burundi first, followed by Uganda, Niger, Burkina Faso, and Malawi.

Studies by auditing firms KPMG and Deloitte highlight countries known for strong retail markets in Africa, and their main characteristics to consider when investing in the retail market:

  • Algeria; due to the country’s high wealth per person, high urbanisation growth rate and the concentrated wealth in urban regions.
  • Ghana; due to the accommodating business environment, and popularity of shopping centres.
  • Kenya; due to the country’s strong population growth, growth in middle class, educator labour force, and the dynamic private sector.
  • Morocco; due to country’s rise in urbanisation, the favourable age structure and the growing middle class.
  • Nigeria; due to the large market size of the country, urbanisation, the growth rate, the privatisation of the power sector and the youthful population.