In recent years, the Fast Moving Consumer Goods (FMCG) industry has been a major player in Africa’s economy. The growth of the FMCG industry in the 21st century is extraordinary, and there are many factors that contribute to this. From technological advancements to an increase in disposable income, these factors have all played a role in driving the growth of this sector. Let's take a look at some of the most influential trends that have propelled FMCG growth on the continent.
Rise of Technology and Connectivity
One of the major drivers behind FMCG growth is technology and connectivity. The rise of mobile phone usage across Africa has led to increased access to information, products, and services. This has enabled more people to purchase goods online or through mobile payment solutions like M-Pesa. Furthermore, ecommerce platforms such as Jumia have made it easier for consumers to purchase items without having to visit physical stores. As such, online shopping has become increasingly popular throughout Africa, and this trend is expected to continue into 2021 and beyond.
Increase in Disposable Income
Another key factor driving FMCG growth on the continent is an increase in disposable income. Over the past few years, economies across Africa have seen a steady increase in average wages which has enabled more people to spend money on consumer goods like food, beverages, and personal care items. Additionally, governments across Africa are investing heavily into infrastructure development which is boosting economic activity and creating jobs – thus allowing more people access to disposable income which can be used for purchasing consumer goods.
Improved Distribution Networks
Finally, improved distribution networks are also playing an important role in enabling FMCG companies to reach more customers across Africa with their products. Companies like Shoprite have established extensive distribution networks that allow them to deliver products quickly and efficiently throughout multiple countries on the continent - including places where traditional brick-and-mortar stores may not be able to reach as easily. This has enabled companies like Shoprite to capture a larger share of the market than ever before – further driving up demand for consumer goods across Africa.
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