The retail sector in Africa is experiencing a significant boom, poised for exponential growth in the coming years, driven by a young, rapidly growing population and an expanding middle class.
The retail sector in Africa is undergoing a rapid transformation, establishing itself as a trillion-dollar market. This expansion, highlighted by the African Retail Barometer, underscores the growing importance of retail trade for the continent’s economy, boosted by the rise of e-commerce and m-commerce.
In numbers, over 60% of African consumers now shop online, and m-commerce (mobile commerce) accounts for 40% of these digital transactions, illustrating the dynamism of a young and connected population. Retail sales, growing at an annual rate of 5% to 10%, reflect the vitality of this sector, with food taking a prominent role, representing 30% of total consumption.
This retail boom in Africa is accompanied by a strong preference for local products: 75% of consumers favor Made in Africa products in major continental markets, showing notable attachment to regional brands and craftsmanship. This phenomenon reflects both regional pride and a growing trust in the quality of local products, which are seen as symbols of cultural and economic identity.
Africans are increasingly aware of the importance of this niche. On October 10, 2024, a key event was held in Abidjan, Côte d'Ivoire, organized by Retail Revive Services (RRS), a firm specializing in supporting retail organizations in Africa. This gathering aimed to lay the groundwork for a pan-African retail strategy, addressing the challenges and opportunities in this growing sector. Claudia Malangue, founder of RRS, emphasized the vast potential of African retail, stressing the importance of structured and adapted training to support this growth. "Retail in Africa is a goldmine of opportunities, but it’s crucial to structure training and better understand local dynamics to support this expansion," she stated.
According to Malangue, the sector's success relies on a systematic approach to talent development and retention. Faced with rapid growth and rising consumer demands, sector players are calling for investments in human capital, offering young talents career development opportunities. This human dimension is at the heart of the success of retail in Africa, which must not only address infrastructure challenges but also attract and retain a skilled, motivated workforce.
Logistics Challenges
The expansion of retail in Africa is closely tied to the continent’s logistical challenges. With nearly $100 billion invested in the supply chain, improving transport and distribution infrastructure is essential to support the sector’s growth. "Logistics remains a strategic pillar, and each link in the chain must be optimized to ensure smooth distribution," says David Alliali, representative of Africa Global Logistics. In a context where infrastructure varies significantly from one region to another, logistics is crucial to enable efficient product circulation, ensuring final consumer satisfaction.
Retail companies in Africa are therefore investing heavily in innovative logistical solutions tailored to local realities. By integrating tracking and route optimization technologies, they are improving the speed and reliability of their deliveries, meeting the expectations of a clientele increasingly demanding in terms of speed and quality of service.
In an environment where digitalization is becoming an essential growth driver, African retail is turning to new technologies to strengthen customer relationships. The integration of digital solutions allows for a personalized customer experience, providing a significant competitive edge to companies adopting a consumer-centered approach. M-commerce, facilitating transactions via smartphones, is especially popular, meeting the needs of a continent where access to traditional banking infrastructure remains limited in certain areas.