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
Scientists told to research on local construction materials
The Research Industrial Institute should come up with new technologies of local materials in the construction industry in the country to reduce reliance on imported ones....
PM Rugunda launches USE automated system
The Uganda Securities Exchange (USE) is now officially trading using an internet-enabled automated trading system....
World markets plunge on fears of weaker global growth
World stock markets plunged further on Tuesday as more gloomy evidence emerged of China''s economic slowdown, triggering heavy sell-offs from Hong Kong to New York and raising fears of weakening global growth....
Consider solar more as alternative power source- Eskom boss
The new head of power generating firm, Eskom has advised Uganda to explore its solar potential seriously as an alternative to the hydropower to increase electricity reach....
Top Ugandan executives to woo investors at UNAA meet in Louisiana
Top executives of major government agencies are heading to the 27th Annual Uganda North American Association (UNAA) Convention in New Orleans, Louisiana to address the Ugandan Diaspora community....
NARO launches modern agricultural practices campaign in schools
The National Agricultural Research Organisation (NARO) has launched its campaigns for sustainable modern agricultural practices in rural schools to ensure quick dissemination of the new farming technologies already invented, for increased quality and quantity of farm produce, job creation, food sec...
Are poor parliamentary debates a result of removal of school debates?
Yes
No
Can't Say
follow us
subscribe to our news letter