Africa’s growing middle class expected to spend $2.2 trillion per year by 2020

It is estimated that one-third of Africa’s over one billion population is currently living in urban areas, and that proportion is expected to grow to one-half by 2030.

Among this growing population is a sharply growing number of young people with a bourgeoning middle class that has increasing financial resources.

This large pool of talent with increasing levels of disposable income is expected to actively participate in the consumer economy.

The African Development Bank (AfDB) says sub-Saharan Africa’s middle class has grown from approximately 26% of the population three decades ago, to about 34% currently, and “by 2020, Africa’s middle class is expected to spend more than US$2.2 trillion per year, representing about 3% of aggregate global consumption,” it adds.

By the year 2060, it says the percentage of Africa’s population that is middle class is projected to grow to 42% of the population, representing more than 1.1 billion people. Many of these are professionals who have studied at universities in Europe and North America and are seeking to bring their skills back to their home countries, with specialist skills in management, operations research, engineering and other fields that directly apply to the leadership of growing companies, according to the Bank.

By Emmanuel K. Dogbevi