Gen Zs to dominate consumer spending in the next 10 years

Youths during anti-tax protests in Nairobi. [File, Standard] Africa is poised to dominate the future of consumer spending, which will be shaped by key metrics such as high population and robust economic growth. According to the Africa Macroeconomic Performance and Outlook report by the African Development Bank, in 2025, the growth in 24 African countries led by Djibouti, Niger, Rwanda, Senegal, Libya and South Sudan, is expected to exceed five per cent. Africa will also account for 12 of the world's top 20 fastest-growing economies. At the centre of this growth is Africa's fast-growing population, currently standing at 1.54 billion people, only second to Asia, which has 4.8 billion people. The report outlines that although the African population is, on average, young, the demographic dependency ratio, measured by the ratio of the economically inactive population (0-14 years and 65 years and above) to the economically active population (15-64 years), varies widely by country. However, a new report by World Data Lab has unveiled new optimism, revealing that life has been improving for all generations in all the continents, with Gen Z being the largest, wealthiest and most global generation ever. In Sub-Saharan Africa, according to the report, the average amount spent by a person who is 50 years old has been improving exponentially. Baby Boomers (1946-1964) per capita at 50 years stands at $3,117 (Sh402,093, Gen-X (1965-1980) at $3,799 (Sh490071), Millennials (1981-1996) at $4,800 (Sh619,200) and Gen-Z at $5,917 (Sh763,293). "Currently, the average total Gen Z spending per capita in Africa is $1,277 (Sh164,733), with food, housing, transport and clothing taking priority," noted the report. It is projected that Gen Z will continue to dominate spending in Africa in the next 10 years. The World Data Lab report dubbed Gen Z and the Future of Consumers in Africa highlights that at $801 billion (Sh103.33 trillion) in 2025, Gen Z will spend the most out of all generations in Africa, and will spend more than $1 trillion (Sh129 trillion) after 2032. Even though the spending power of Gen Z has exponentially improved across Africa, 63 per cent of Africa's Gen Z spending in 2025 is concentrated in five countries. Nigeria, which leads the continent on Gen Z numbers with a headcount of 72 million, had the age group spending this year hit $256 billion (Sh33.03 trillion. Egypt's 30 million Gen Zs spent $116 billion (Sh14.96 trillion), while South Africa's 17 billion spent $56 billion (Sh7.22 trillion). Ethiopia's 41 million Gen Zs spent $43 billion (Sh5.55 trillion), with Kenya closing at $34 billion (Sh4.39 trillion) spent by 17 million Gen Zs. Further, Coastal cities dominate Gen Z spending with Cairo leading the way, followed by Lagos, Johannesburg, Alexandria and Accra. In Kenya, the past decade saw a stiff competition in consumption between the millennials and Gen-Zs, tipping at around 2019 where Gen-Z surpassed the Millennials. Urban setting In Nairobi alone, 972,000 Gen-Z spent $10 billion (Sh1.29 trillion, followed by Mombasa, Kisumu, Eldoret and Nakuru, showing the advantage that urban setting has on Gen-Z. Satellite towns of Ruaka, Ongata Rongai and Kitengela have also recorded massive spending by Gen-Z. With a median age of 20 years, Kenya's market is shifting at a fast pace and is dominated by Gen-Z. Even though the same population is disproportionately affected by the high unemployment rates, the creation of an enabling environment to cater for the demands of Gen-Z will be a game-changer for the country, at the same time, spur the economy to create the much-needed job opportunities. For now, we can confidently say that the market now belongs to Gen-Z.

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Gen Zs to dominate consumer spending in the next 10 years

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