Re-defining the consumer class in Sub-Saharan Africa to set more realistic targets

Over the past two years, multinational companies have come under pressure in their Sub-Saharan African (SSA) businesses from falling oil prices and volatile consumer demand. While economic pressures are contributing factors to the challenges MNCs are facing, they are not the sole cause. High expectations of the growth trajectory of the consumer class, coupled with local factors shaping consumer preferences and purchasing power, have meant demand has sometimes fallen short of expectations.

With consumer spending expected to grow to US$ 2.5 trillion by 2025, the SSA consumer class remains an attractive opportunity. Consumers also drive opportunities across sectors, such as pharmaceuticals, are small and medium sized business owners creating B2B demand, and offer opportunities for firms in the technology sectors. Yet MNCs may be missing out on a much broader opportunity to tap into SSA’s large pool of consumers at somewhat lower income levels.

Assessing the opportunity from the ground up with a consumer-centric qualitative and quantitative approach, our research will enable you to set more accurate expectations about the size, growth, and nature of the SSA consumer opportunity.

Our newest report, Capturing SSA’s Consumer Class, includes extensive qualitative research that uncovers some of the biggest misconceptions about SSA consumers and outlines how they affect strategy. It features critical leading indicators to monitor that shape consumer spending by type of economy. You will also find new data sets created specifically to help you estimate the size of the consumer class, assess which markets offer better conditions for a healthy consumer class to exist and grow, and a new quality-adjusted growth indicator to give you better data to set targets.

FSG clients can access the full report on FrontierView here. Not a client? You can purchase the report from our online store or contact us to learn more.

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