Population growth to drive continental consumer spending to $2.1 trillion by 2025, says CPC
The Consumer Protection Council (CPC) has said that population growth is projected to drive continental consumer spending to $2.1 trillion by 2025.
Director-General of the CPC, Mr. Babatunde Irukera, stated this in his presentation to the Africa Policy Forum of the Leeds University Centre of Africa Studies (LUCAS) of the University of Leeds, United Kingdom (UK).
Irukera advocated for the implementation of simple widely acknowledged principles of asset management and strategies to maximise the benefits from the markets to overcome poverty and achieve significant economic growth.
A statement signed yesterday in Abuja by CPC Head of Media, Biodun Obimuyiwa, also stated that the growth was driven by key factors such as a young and growing population, rise in incomes, rapid urbanisation and widespread adoption of technology.
In his presentation, titled “Africa’s Emerging Market: A matter of Asset and Access,” Irukera stated that the increasing value of the African market is underscored by rising consumer spending across the continent, which was about $1.4 trillion in 2015, and projected to reach $2.1 trillion by 2025.
He said: “Considering population and age, it is clear that Africa’s greatest assets are its people and skills. Sadly, they are also our greatest export.
“Africans are key applicants to nations with skills acquisition immigration policies which focus on highly skilled migrants, whether it’s USA, Canada or UK. Essentially, these countries benefit from people who have acquired certain skills they need without the time and resource required to invest in development.”
According to him, rather than engage in unproductive handwringing over the export of talent and skills out of Africa, there should be a stronger focus on robust regulation and competition regimes to overcome current challenges and maximise existing opportunities.
The director-general stated that reducing the prices of food staples by just 10 per cent, tackling cartels and improving regulations that limit competition in food markets could lift 500,000 people in Kenya, South Africa and Zambia out of poverty and save consumers more than $700 million a year.
“Economic performance is generally measured by spending and consumption index as a key indicator. Spending is usually considered a matter of disposable income. However, spending is as much a matter of satisfaction as it is of disposable income. Satisfaction is primarily about choice, price, quality and treatment. The rightly regulated market will provide satisfaction and encourage spending,” he said.