Africa

Details

  • Industry: Consumer Markets
  • Type: Business and industry issue
  • Date: 9/14/2015

Consumer Markets

KPMG's Consumer Markets team helps business to adapt to fast-changing business conditions.

African Consumer and Retail Report 2015 

Africans are increasingly moving to cities, making it easier for companies to target certain consumer groups. Although the demographic make-up of the continent is extremely favourable, success is not guaranteed. Firstly, there are vast differences across countries – North Africa is for example far more developed than sub-Saharan Africa (SSA), while the retail market opportunities in countries will differ due to variances in consumer tastes, culture, income, and demographics.
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Africa’s retail sector remains relatively under-developed at present, with most shopping being done at traditional shops. The formalisation of the sector will be a key trend underlying the sector’s expansion in the coming decade. The lack of physical infrastructure has been one of the main constraints to the entry of formal retailers, as there are simply not enough shopping centres available at present, while bureaucratic obstacles and land issues further complicate matters.

 

At present, most African consumers – especially south of the Sahara desert – remain extremely poor and spend most of their money on food and other necessities. This makes for a promising outlook for fast-moving consumer goods (FMCG) companies given the large market to cater for.

 

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