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As more opportunities for investment arise across Africa, several nations are witnessing record growth rates

Across Africa, examples of foreign direct investment (FDI) are evident. China has taken the lead, with the continent being at the heart of its One Belt, One Road initiative. Now other countries are following suit. Brazil, for instance, built Ghana’s largest flyover in Accra. Germany, meanwhile, launched the ‘Marshall plan for Africa‘ in 2018, which will see it assist in the establishment of infrastructure that will help promote African exports.

As governments across the continent continue to take steps to liberalise and diversify their economies, Africa has become home to some of the world’s fastest-growing economies. Consequently, opportunities to invest in the continent have become more abundant than ever before. In light of this phenomenon, World Finance lists the top five fasting-growing economies in Africa, according to the World Economic Forum

1 – Ethiopia (8.5% GDP growth rate)
Efforts to modernise Ethiopia’s economy have paid off. A wave of privatisation, with state-owned companies being sold to overseas investors in China, saw FDI growth hit 27.6 percent in 2016/17. The Ethiopian Government has also stepped up to the plate with substantial state investment to boost infrastructure and support sustainable solutions. Hoping to rival the manufacturing sectors of China and India thanks to its cheap labour costs, the country has also made efforts to improve its trading relationships and promote Ethiopian products. However, the modernisation of the economy has not been all smooth sailing: as the country moves away from its reliance on agriculture, the reforms have sparked public unrest and raised concerns about the government’s human rights record.

2 – Côte d’Ivoire (7.4% GDP growth rate)
The Ivory Coast is one of the nations that benefitted from the 50 percent African franc devaluation in 1994. This helped to control the resulting hike in inflation, while making exports more competitive. The nation also benefits from excellent infrastructure, making it attractive to foreign inflows. This is boosted further by the government stepping up a programme called the National Development Plan (NDP) for 2016-20, which is aimed at encouraging investment. Challenges remain, however: the Intergovernmental Panel on Climate Change released a report in 2018 that highlighted the effects of climate change on nations such as the Ivory Coast. The country has a heavy coastal population of 7.5 million, contributing to 80 percent of its GDP.  The report predicts that, on the current path, climate-induced impacts are expected to “drive the loss of coastal resources”.

3 – Senegal (7% GDP growth rate)
Senegal is one of Africa’s most stable countries, experiencing three peaceful political transitions since it gained independence from France in 1960. However, increased extremism in neighbouring countries has been a cause for concern in recent years. Senegal’s economy remains highly dependent on agriculture, accounting for 15.4 percent of GDP, though variable weather conditions can play a large part in this figure. Fortunately, the nation has a highly developed tourism industry, and with its extensive coastline, it also operates as a shipping hub – another driving force behind its high growth rates. Dakar, as the capital of the former federation of French West Africa, is home to numerous banks and institutions that serve the continent’s Francophone countries.

4 – Tanzania (6.4% GDP growth rate)
East Africa’s second-largest economy, Tanzania, is a nation in transition. But despite the country’s promising GDP growth rates, an estimated 46 percent of the population remains in poverty: many of the gains in GDP have so far been unequally shared between citizens. As with others in this list, Tanzania remains highly dependent on agriculture with no signs of this abating – in fact, between 2014 and 2015, the sector’s contribution to GDP increased by 0.2 percent. That said, the nation is also a regional leader in the financial services sector. The Bank of Tanzania allows non-banking institutions to provide financial services, a daring move that has proved to be rewarding. The country also benefits from a stable deficit that has remained modest – 2.1 percent in 2017/18 – meaning investments into the country pose less risk than others on the continent.

5 – Ghana (6.3% GDP growth rate)
Neighbour to the Ivory Coast, Ghana is the third Western African country to feature on the list. The country boasts a rich range of resources: it is Africa’s second-largest producer of gold, and has an abundant supply of diamonds and oil. To supplement trade, Ghana imposes various tariffs or barriers compared to neighbouring countries, and its depreciating currency has made the nation’s exports more competitive. Consequently, agriculture accounts for around 20 percent of GDP, while also employing half of the country’s workforce. However, in 2015, a drop in oil prices and lax government spending forced Ghana to apply for an IMF bailout of $1bn. It is on track to exit the agreement later this year.

NEW YORK, NY – Sept. 12, 2019 – African Americans want more for themselves and from corporate America, and they express it with their dollars as they move through the consumer journey, from brand awareness to purchase, as revealed today in Nielsen’s 2019 Diverse Intelligence Series (DIS) Report on African Americans.

It’s in the Bag: Black Consumers’ Path to Purchase  explores the non-linear and uniquely technologically driven road that African Americans follow to make purchasing decisions, which ultimately maximizes both online and in-person shopping options. This path highlights several differences in shopping behavior and purchasing when compared to the total U.S. population. The report also includes deeper insights into how culture, socio-economics and business influences how, why and what motivates African American spending in a special co-authored section by advocate and media commentator Angela Rye, CEO and Principal of Impact Strategies.

“At 47.8 million strong and a buying power that’s on par with many countries’ gross domestic products, African Americans continue to outpace spending nationally,” said Cheryl Grace, Nielsen’s Senior Vice President of Community Alliances and Consumer Engagement and co-creator of the DIS Report. “This year, we wanted to help brands and marketers understand the multi-faceted process that Blacks take to buy the products they buy. There are several drivers, but culture is at the center of them all. Further, with their love for technology, they are much more savvy and conscious consumers. They are as we say, ‘woke.’ They pay attention to how companies are speaking to them. As they spend more, they want more for themselves and from the brands they support.” 

Dating back to 2011, this is Nielsen’s ninth report highlighting the media consumption, purchasing habits, lifestyle interests and economic advancements of African Americans. It is the third in a theme, released by Nielsen this year following the comprehensive purchasing processes of Asian American and Latinx consumers. Key takeaways from It’s in the Bag: Black Consumers Path to Purchase include:

African Americans are welcoming recipients of advertising across all channels. However, while the trends of the Black buying power and over-indexing in spending continue to increase, companies’ investments to advertise to them have decreased.

• African Americans are more likely than the total population to agree that advertising provides meaningful information on most platforms, including mobile (42% higher), television (23% higher), radio (21% higher) and the internet (18% higher).
• Advertising spend designed to reach Black consumers declined 5% between 2017 and 2018.

Physical appearance reflects a sense of cultural pride and self-expression in the Black community. This is evidenced by the top spending priorities for African Americans from everyday soap to luxury handbags. 

• African Americans outspend the total market on personal soap and bath needs by nearly 19% ($573.6 million).
• Men are making an impact with grooming habits, outpacing the total market by 20% on toiletry items. 
• Blacks are 20% more likely than the total population to say they will “pay extra for a product that is consistent with the image I want to convey.”
• They are also more likely to say they shop at high-end stores including Saks Fifth Avenue (63%), Neiman Marcus (45%) and Bloomingdales (24%).

While online shopping grows, African Americans continue to head to physical stores for the personal touch and feel experience—but with more discerning eyes.

• More than half (52%) of African Americans find in-store shopping relaxing, compared with 26% of the total population. 
• 55% of Black consumers say they enjoy wandering the store looking for new, interesting products.
• When shopping, African Americans are more influenced than the total population by store staff (34% more likely), in-store advertising (28% more likely) and merchandising (27% more likely). 

The “for us by us” trend of Black-owned brands is profoundly impacting the African American path to purchase and consumer marketplace. Black consumers support brands that align with their lifestyles and values.

• African Americans dominate the ethnic hair and beauty aids category, accounting for almost 90% of the overall spend.
• 42% of Black adults expect brands they purchase to support social causes (16% higher than the total population).
• 35% of African American shoppers are more likely to agree, “when a celebrity designs a product, I am more likely to buy it.”
• Procter & Gamble (P&G) is the largest advertiser in African American media, spending more than a half-billion dollars ($544.3 million). Five of the top 20 baby care category products come from P&G’s Pampers and Luvs brands.

Soul food drives African American consumers’ top grocery purchases. These consumers are also passionate about the environment, wanting to buy safe, locally sourced food items.

• African Americans outpace the general market on: Quaker grits ($19 million); Louisiana Fish Fry ($11 million); Glory Greens (frozen and fresh, $9.5 million combined) and Jay’s Potato Chips (nearly $2.7 million).
• 61% say produce is the most important category to buy local, followed by bakery and prepared foods (56%), eggs (55%) and dairy (52%).
• Blacks over-index the total population concerned about food safety issues: antibiotic use in animal production (by 20%); artificial ingredients (by 19%) and GMO crop development due to climate change.The biggest worry is rising prices due to trade tariffs (68% Blacks vs. 56% total population).

“Nielsen continues to unearth undeniable data and insights that highlight both the agency and power of Black consumers, and the plethora of opportunities that exist for companies that are focused on nurturing and empowering how they move through the world,” said Jonathan Jackson, former 2019 Nieman-Berkman Klein Fellow in Journalism Innovation at The Nieman Foundation for Journalism and member of Nielsen’s African American External Advisory Council.

Nielsen uses U.S. Census data to determine population estimates that inform its U.S. panels and its understanding of consumer behavior. Given the rapid diversification of the U.S. population, an accurate census has never been more important. That’s why Nielsen has signed on as a 2020 Census Official Partner with the U.S. Census Bureau, and utilized census data to show the economic and demographic impact of African American consumers.This is the second time the company has leveraged this partnership for the Diverse Intelligence Series, after the 2019 Latinx consumer report, released in August.