There is no question that this continent offers a number of exciting opportunities for entrepreneurs and business operators. Research houses have suggested that the African continent as a whole is likely to grow at between 4 and 7% per year for the next decade, driven by the emergence of a new middle-class.
While terms like “Black Diamond” are bandied around, there is very little understanding around how the consumer market will change in the next few years and how you should be positioning your business. These are two excellent graphs from the Accenture team as part of a recent consumer report they put together.
As you can see, the two big growth opportunities are in the “Working Families” and “Rising Strivers” segments of the market.
Definitions of the two asset classes are as below as supplied by Accenture:
Working Families: Make up between 20% and 30% of the continent’s population. They generally earn between $100 and $250 per month.
Rising Strivers: Comprising an estimated 10% to 16% percent of Sub-Saharan Africa’s population, Rising Strivers can earn more than double what Working Families earn ($250 to $750 each month), which often leaves them with a surplus to spend on consumer goods such as cigarettes, clothing, and even the occasional bottle of perfume or cologne.
Download the full report (Dynamic African Consumer Market: Exploring Growth Opportunities in Sub-Saharan Africa) from Accenture by clicking here.