Africa will be the second largest region for consumer spending growth in the 2020s. Most of that spending will be focused on the basic essentials: food, transport, household goods, education, and healthcare. However, eating out, entertainment, and consumer goods will also experience growth as discretionary spending rises on the back of growing purchasing power.
In a sign of an emerging shift in the growth dynamics of the continent, most growth in consumer spending is coming from relatively smaller markets in value, like Kenya and Ethiopia, rather than the traditional powerhouses, such as South Africa. Both Kenya and Ethiopia are tipped to experience 8% annual growth in consumer spending from 2015 to 2030.