Business
As Africa's middle classes grow, shopping centres boom
Publish Date: Jun 14, 2014
As Africa's middle classes grow, shopping centres boom
  • mail
  • img
newvision

ABIDJAN - A surge in disposable income and the growth in Africa's middle classes has led to an upswing in the number of shopping centres across the continent, a report said Friday.

With shoppers searching for new ways to spend their money, and investors keen to help them to do it, some 14 new shopping centres opened their doors between 2012 and 2013, according to research by Sagaci, a market intelligence organisation.

Excluding South Africa, there were 242 shopping centres in the continent last year, the report said.

"The middle class is developing. And the people in it want to spend their money," Julien Garcier, a partner at Sagaci, told AFP.

More than 180 other retail developments are in the pipeline, according to the researchers, funded "largely by local investors".

Just one shopping centre closed last year, the Westgate mall in Nairobi, Kenya, which was shut after an attack by the Somali Islamist group Shebab in which at least 67 people were killed.

According to the International Monetary Fund, about 150 million people can be considered firmly in the continent's middle class, with the same number again part of the more vulnerable "floating" middle class.

Sub-Saharan African economies are currently some of the fastest growing in the world, and expected to expand by more than five percent this year.

While much of the continent's growth has come from oil, gas and other natural resources, the emergence of a middle class has also boosted consumer growth.

According to a study by the African Development Bank published in 2011, nearly 34 per cent of Africa's population are middle class, with the group almost tripling in size from 1980.

In May, the accountancy firm Ernst & Young published a report that said that many investors are now moving into "consumer-related sectors as Africa's middle class expands".

Garcier says his research suggests that some 30 per cent of households living in the biggest African cities earn more than $500 (370 euros) a month.

"In all the countries of sub-Saharan Africa, the size (of the middle class) is underestimated," he said.

RELATED ARTICLES

Get the best bargains by window-shopping

Kampala gets modern shopping centre

Ovino shopping mall set to change the face of Kisenyi

The drama of Xmas shopping in Kampala

 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Security to be improved at Entebbe International Airport
By Billy Rwothungeyo Why do you have to hop out of your car to have a hand metal detector pressed against your body just before entering Entebbe International Airport? Why should you not drive through hustle free straight to the departures gate at Entebbe?...
National Water, Entebbe Municipality scoop procurement award
National Water and Sewerage Corporation (NWSC) and Entebbe Municipal Council have been recognized as the most efficient Public Procuring and Disposing Entities (PDEs) of the 2013/2014 financial year....
Yiiya Ssente forum: Past participants to share testimonies
Participants who attended previous Yiiya Ssente forums will have a chance to share their experiences with other people who will attend this year’s forum at Kololo Airstrip on Saturday....
Kalagala Nkozi farmers launch a Cooperative Society
A new farmers’ Cooperative society was yesterday opened in Mpigi district, to provide financially and technical skills to farmers....
Museveni tips soft-drink companies to use locally produced fruits
President Yoweri Museveni advises soft-drink companies like Coca-Cola and Pepsi to process locally produced fruits in order to cut down on some costs....
Make mobile banking relevant to poor
State minister for Microfinance Caroline Amali Okao has challenged digital financial services providers that their target of adding 550,000 active users by the end of this year might not succeed unless they come up with innovations that will benefit the local users...
Do you think government is doing enough to contain the typhoid out break?
Yes
No
Can't Say
follow us
subscribe to our news letter