A Continent of New Consumers Beckons

As Disposable Incomes Continue to Climb, Multinationals Shift Focus From Resources to Retail

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Some analysts believe a billion-person continental market already has arrived. Consultancy McKinsey & Co. says the number of middle-income consumers—those who can spend for more than just the necessities—in Africa has exceeded the figure for India. The firm predicts consumer spending will reach $1.4 trillion in 2020, from about $860 billion in 2008.
While Africa's resource wealth continues to lure the bulk of foreign investment, the rise of that new consumer class is beginning to shift the balance. From 2000 to 2009, foreign direct investment to Africa increased sixfold to $58.56 billion, according to the United Nations Conference on Trade and Development. And that includes a sharp drop during the global financial crisis, from $72.18 billion in 2008