For those who would like to invest in consumer goods, well Africa is well indicated in the coming years.
According to a study by the Deloitte office presented during a congress of distribution on Wednesday in Johannesburg, the continent will be “by 2017, the second market where to invest for consumer goods industries“.
“Even if it is too early to baptize the recent African growth of African miracle, for a lot people, Africa and particularly Sub-Saharan Africa, is status of the South-East Asia 30 years ago, at the edge of the boom“, underlined the study.
“What is missing in Africa is not demand but supply“, added the authors.
Investing in the markets of the continent remains “complex and difficult” and incomes “relatively low”, but companies ready to innovate by adapting their circuits, their brand and their business portfolio have big chances to make profits, according to Deloitte that underlines: “Africa requires paying attention to a sustainable growth on the long term rather than the short term“.
The authors also mention the unprecedented population growth.
“Before 2030, more than one half-million Africans should belong to the middle class“, considered as being able to spend from 2 to 20 dollars daily.
The demand of 15-24 years old persons already supports the development of a business of modern distribution and the sales of the leading goods, added Deloitte.
With the exponential urbanization of the continent, the new megalopolises practically form full markets.
A poll by internet with 2.000 young people in Kenya, Nigeria, Egypt and South Africa, four of the consumer markets in stronger growth, completes the analysis.
“In certain categories as food and drinks, the youth prefers local brands whereas for fashion and cosmetics, international brands are synonym of quality“, observes the study.
Original text by: Blaise AKAME