A.T. Kearney’s 2014 Africa Retail Development Index ranks Africa’s top 10 countries offering the greatest investment opportunities in the retail business (100 = greatest opportunity). Rwanda (70), Nigeria (64) and Namibia (60) lead Africa and are destinations where investors in the retail business can consider entering to realize good returns.
Rwanda’s success in retail is partly due to the country’s numerous business reforms and focus on investment. Nigeria on the other hand is Africa’s most populous country and has a growing middle class.
E-commerce has an important role to play in Africa’s retail business especially with Africa’s current mobile and internet boom. Google predicts massive growth in African e-commerce in the coming years and observes high growth rates in terms of online business queries in several African countries including South Africa (37% growth), Nigeria (49%) and Kenya (33%) between 2013 and 2014. Based on McKinsey’s iGDP scores for 2014, Africa’s top seven e-commerce friendly countries include Senegal, Kenya, Morocco, Nigeria, South Africa and Ghana.
Agencies
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