Africa Boasts Seven of Top Ten Fastest Growing Economies

CHICAGO, ILLINOIS--(Marketwired - Dec. 3, 2013) - Euromonitor International today published a new White Paper called "Business Challenges and Opportunities in Africa", focusing on growth in Africa for fast moving consumer goods (FMCG) companies.

Seven of the 10 fastest-growing economies worldwide are African: Ethiopia, Mozambique, Tanzania, Congo, Ghana, Zambia and Nigeria. However, the paper encourages companies to look at the continent as a collection of diverse countries and to avoid a 'one size fits all' approach.

"High economic growth, coupled with a much-improved business environment is now making Africa an increasingly attractive hub for international FMCG companies," said Lois René Berman, Research Manager and a co-author of the paper.

The retail sector is considered one of the 'hottest' industries in Africa, surpassing that of natural resources extraction. Indeed, Euromonitor International research shows store-based retail sales in countries such as Nigeria and Kenya are expected to experience double-digit value increases in 2013, 19% and 13%, respectively.

An increase in urban communities is driving this growth in retail and becoming a focal point for African development, with companies using urban centres as a springboard into the wider market. Supermarkets have spread fast in Southern and Eastern Africa, already proliferating beyond middle-class big city markets into smaller towns and poorer areas, such as townships in South Africa. However, in Algeria, Morocco and Cameroon, independent small grocers make up around 60% of all distribution channels.