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Johannesburg - Rwanda, Nigeria, Namibia, Tanzania and Gabon occupy the top five places of the inaugural A.T. Kearney African Retail Development Index.
South Africa ranks seventh due to the developed nature of its retail market.
The index is designed to help large retailers determine where and how to best enter Sub-Saharan Africa’s rapidly growing retail sector was published on Monday.
The study not only identifies the markets in Africa most attractive for retail expansion today, but those that offer the most potential for the future.
"Africa is brimming with opportunities, not only for local and regional players, but also for large global brands and retailers," according to the authors of the index.
South African brands and retailers have been at the forefront of African expansion, but may soon see global competition coming in, according to the study.
For SA players to keep their competitive advantage, sound strategies and investment plans will be required.
With a billion people and growing economies, seven of the top ten countries on the index are among the ten fastest growing economies in the world.
'Formal' retail
“Formal” retail, which takes place in malls, shopping centres and other defined trade areas, remains in the early stages in most Sub-Saharan Africa countries, with the exception of South Africa, and is limited primarily to a handful of urban areas.
Low rates of formal retail coupled with increasing urbanisation and the relative stability of many African economies represent massive room for retail growth.
Mirko Warschun of A.T. Kearney, co-author of the index, said it is essential that retailers understand where African countries are in the evolution of the retail landscape and the stages of market development to craft their expansion strategies for Africa.
By 2020, nearly half of all Africans will be living in cities. As disposable incomes rise, consumer spending will grow to almost $1trn.
“Although there are many challenges, Africa has reached a point in its economic development where global retailers must evaluate the significant potential for growth in this market,” said Mike Moriarty, co-author of the study.
South Africa ranks seventh due to the developed nature of its retail market.
The index is designed to help large retailers determine where and how to best enter Sub-Saharan Africa’s rapidly growing retail sector was published on Monday.
The study not only identifies the markets in Africa most attractive for retail expansion today, but those that offer the most potential for the future.
"Africa is brimming with opportunities, not only for local and regional players, but also for large global brands and retailers," according to the authors of the index.
South African brands and retailers have been at the forefront of African expansion, but may soon see global competition coming in, according to the study.
For SA players to keep their competitive advantage, sound strategies and investment plans will be required.
With a billion people and growing economies, seven of the top ten countries on the index are among the ten fastest growing economies in the world.
'Formal' retail
“Formal” retail, which takes place in malls, shopping centres and other defined trade areas, remains in the early stages in most Sub-Saharan Africa countries, with the exception of South Africa, and is limited primarily to a handful of urban areas.
Low rates of formal retail coupled with increasing urbanisation and the relative stability of many African economies represent massive room for retail growth.
Mirko Warschun of A.T. Kearney, co-author of the index, said it is essential that retailers understand where African countries are in the evolution of the retail landscape and the stages of market development to craft their expansion strategies for Africa.
By 2020, nearly half of all Africans will be living in cities. As disposable incomes rise, consumer spending will grow to almost $1trn.
“Although there are many challenges, Africa has reached a point in its economic development where global retailers must evaluate the significant potential for growth in this market,” said Mike Moriarty, co-author of the study.
