Everyone is starting to agree that there is much more to Africa than just its abundance of natural resources.
Increasingly, people are peering through the once murky perception they had of the continent and what they see is more than 700 million people who are already behaving like consumers. This number is expected rise to above 1.2 billion over the next 15 years! Have a look at the graph below and the whole picture becomes very clear.
It is true that most African consumers are staring from a low base, but they are buying things, most of them are still not in the market for cars and luxury goods but they are getting into the habit of increasingly acquiring value added goods and services.
It is no surprise that the world’s leading retailers are working very hard to get a foothold in these markets!
Another interesting fact is that most of the African household budgets are spent on food. It ranges from around 50% in places like Egypt and Kenya and above 70% in large population countries like Nigeria and Ethiopia.
So, if you want to invest in the consumer opportunity in Africa, the food industry is probably the best way to do so.
That is why we launched the African Food fund – a private equity strategy that invests in the upcoming local winners in the African food and beverages industry.
We will be doing a webcast about this in collaboration with IPE (Invesment Pnesions Europe) on September 20. You may be interested in attending because we will be sharing our insights into this amazingly dynamic sector and speak about how investors can capture its value.
To register, please go to Investing in African Private Equity
As you probably know, at Silk Invest, the consumer opportunity has always been at the core of our investment strategies.
Don’t hesitate to get in touch with us if you would like to discuss all this in more detail.
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