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Africa: 2nd market of world consumption before 2017

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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

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