Insights and analysis
Africa’s supermarkets — a sure bet?
McKinsey projects African household consumption will grow at an average rate of 3.8% per annum from 2016 to 2025 to reach some $2.1 trillion. Some of the big domestic retailers such as Nakumatt and Shoprite are attracting international investors. Furthermore, McKinsey notes that domestic supermarkets are likely to grow at a faster pace than international entrants. With that and the low formal retail penetration (on average 90% of retail in Africa is informal) — is this the right time to get in on Africa’s supermarket sector?