Africa set to become fastest-growing, most sophisticated market in the world – Kearney
Share this article:
CAPE TOWN - In the wake of Covid-19, Africa is poised to move away from traditional retail models and become the fastest-growing, richest and most sophisticated market in the world.
This is according to leading global management consulting firm Kearney, which recently released the 2021 Global Retail Development Index (GRDI), which found significant potential for investors and international retailers among emerging retail markets.
The GRDI ranks 35 developing countries on a scale of zero to 100 – the higher the ranking, the more urgency to enter a country.
Since the GRDI’s inception in 2002, the countries ranked on the index have tracked closely as the top destinations for retailers in subsequent years, said Kearney.
According to the report, Africa is emerging as the next big retail hot spot. It’s predicted that sub-Saharan Africa will enjoy the highest rate of disposable income growth in the world, about 9% compound annual growth rate (CAGR).
African nations – including Ethiopia, Rwanda, Senegal, Ivory Coast, Tanzania, Mozambique, Uganda, Kenya, Cameroon, Ghana, Angola, Nigeria, and South Africa – dominate the list of the fastest-growing economies, the report found.
Furthermore, the report found that by 2030, sub-Saharan Africa’s population – growing at twice the global rate – is expected to overtake China’s.
In the wake of the Covid-19 pandemic, the rise in digitalisation on the continent is huge.
The report found that Africa’s retailers are focusing on return on investment (ROI), adopting franchising and other new business models, and rationalising store footprints.
African grocery retailing is witnessing rapid, scaled digitalisation driven by a vibrant technology and start-up industry.
E-commerce accounts for only about 1% of Africa’s total retail market, with 10 countries responsible for 94% of all online business.
– African News Agency (ANA)