CEOafricastartupfounder

Background Many would agree that Africa is the future of the world. With a growing young population coupled with rapid urbanization and fast-growing consumer expenditure, Africa offers attractive opportunities for entities wishing to expand into new frontier markets. Retailing contributions to GDP across the region continue to increase, indicating that the region is consumption driven. According to Euromonitor International, retail sales in the region amounted to over USD500 billion in 2018. Key retailing markets include South Africa, Egypt, Morocco, and Algeria. The retail sector landscape is changing rapidly. A growing population and larger cities translate into big opportunities for retail. For instance, wholesale and retail are already the 3rd largest contributor to Nigeria’s GDP. Kenya has seen a 54% growth in its number of stores over the last 5 years. South Africa has almost 2,000 shopping malls covering over 24 million square meters. With a surge of investment in technology and infrastructure, Johannesburg is poised to become “Africa’s hippest city.” Consumption in Africa is expected to continue increasing year over year. A Deloitte Consumer Review states, “At a time when many emerging economies are slowing, Africa is the second-fastest growing economic region behind Asia.” Introduction In Morocco, it’s known as a hanout. In Egypt, it’s a bakkal. In Kenya, it’s a duka. In South Africa, it’s a spaza. In the Yoruba language of Southwest Nigeria, it’s an oja. In the Baoule language of Center Cote D’Ivoire, it is called Gwa bo. By whatever name, the traditional retailer is the cornerstone of socioeconomic systems across Africa. Despite the advance of supermarkets, convenience stores, and other modern formats, African consumers on average continue to buy more than 70% of their food, beverages, and personal care products from the continent’s more than 2.5 million small, independent shops. Africa is made up of a combination of traditional and modern retailing