Africans Optimistic About The Future

Africa is optimistic about the future and is proud of its achievements and sometimes its iconic leaders.

According to Clint Rynners, Eurasia Africa Group Knowledge and Insight Manager of Coca Cola, speaking this week at a conference organised by IHS Global Insight on Africa's economic outlook, 'Africans don't see themselves the way the rest of the world does ... They are modernising rather than westernising, cherry-picking elements into their own culture and world view in a very deliberate way.'

He added that the continent's population continued to grow.

'Africa has over 50 cities with a population of a million people or more and US$1.4 trillion of consumer spending is forecast by 2020.'

By the end of the century, Africa would have more than five times the population of Europe.

Rynners said it was important to realise that Africa was urbanising: 'There is therefore increasing interest in the continent as a consumer market and rapid urbanisation combined with increasing disposable incomes promises increasing consumption.'

He noted that Africa's emerging middle class could be seen as an economic power house.

'By 2020, 46 per cent of the world's middle class will be living in Eurasia and Africa and there'll be more disposable income.”

Rynners added that to become or remain relevant to African consumers, companies thinking of doing business in Africa had to understand the habits and attitudes of a population that was mostly made up of young people.

'So you have to look at the relevant branding; technology; as well as interactive communication driven by digital means even though older media channels are still important.'

A number of trends had impacted on the values of the African consumer and these include not only urbanisation but increasing wealth, increasing education levels, improved health care and the large number of women in the workforce.

'Shopping habits are becoming more like those in Europe and there is a great interest in online shopping and banking based on mobile phones.' Indeed in Africa technology had leap-frogged the milestones of the developing world. Bizcommunity.com/GB

'The technology leapfrog effect is allowing companies to reach new consumers while broadband is expected to increase from .04 lines per 100 inhabitants in 2006 to 2.54 lines in 2015.'

Companies are also taking advantage of high mobile phone penetration rates to reach new consumers. He put mobile penetration at 41 per cent, web penetration at 11 per cent and Facebook penetration at three per cent - relatively low.