Africa’s growing middle class provides fertile breeding ground to business. With the rising number of people that can spend money online, new opportunities appear for Africa’s new (digital) enterprises.
Data from the Africa Development Bank show that a new class of consumers is developing fast on the continent. About a third of consumers in Africa spends between $4 to $20 a day. This is an interesting target group that is expected to grow to 42% by 2060. By that time, a billion people have become active consumers.
Quartz Africa reports that every year, consumption on the continent goes up. Africans have spent more than $1 trillion in 2012, from $364 million in 2000, an annual rate of growth of 10.7%. The report concludes that, with deepening internet penetration, some of this spending is starting to happen online. A McKinsey report says that, with 50% of the continent expected to have access to the internet by 2025, online shopping could account for 10% of retail sales, or $75 billion.
Companies that are already tapping into this growth market include Jumia, a Nigerian-based online retailer and Mall For Africa, operating as a conduit for customers to more than 150 global retailers.
Further reading on qz.com