Consumer Sector

Real growth for retailers

Africa is urbanizing fast.  Its rate of urbanization soared from 15% in 1960 to 40% in 2010 and is projected to reach 50% in 2030 (UN Habitat 2010).  This impressive rate of urbanisation coupled with a flourishing middle class is driving the transformation of formal retail on the continent.

Increasingly global retailers (Carrefour, Inditex, Massmart, H&M) and local retailers (Choppies, Shoprite, Massmart) are entering the different African markets in pursuant of the young and upwardly mobile African consumer.

Africa thus presents a potentially sizeable though rapidly changing landscape for formal retail, requiring retailers to formulate innovative and often collaborative-based strategies towards establishing a sustainable market presence. The African retail landscape presents unique logistical challenges in sourcing and distributing merchandise, transacting in cash and mobile payments with customers, managing store infrastructure in low infrastructure cities and managing forex volatility.

Standard Bank has the product capabilities and retail industry expertise to enable our retail clients and investors to effectively tackle these challenges and build a sustainable retail footprint on the continent.

The African consumer – the new market opportunity

Africa is the second largest and second most populous continent on earth, with a population expected to reach 1.4 billion by 2025. It also has the fastest-growing consuming middle class in the world.

FMCG multinationals looking for new sources of growth will find an attractive and receptive market in Africa, where a large portion of disposable income is currently spent on primary and secondary food products and beverages, and where the demand for non-food commodities such as personal care products is expected to increase in the years ahead.

In this era of rapid change, traditional business models have had to make way for more flexible and innovative solutions. Our substantial investment in technology and digital platforms enables us to offer our clients forward-looking solutions that meet their demands for convenient and accessible services in out-of-town locations.

Our regional expertise and deeply-honed skills will be of value to multinationals who have Africa in their sights. We offer insight and expertise in sectors relevant to real growth and development on the continent, backed by our universal banking capabilities available in key growth regions in sub-Saharan Africa. With Standard Bank as your financial services partner, companies and investors can access the opportunities and navigate the risks when working in Africa.
 

Financing the planet’s future food supply

About 60% of the world’s uncultivated land lies in Africa, much of it blessed with abundant resources including water and labour. There is considerable scope for expansion of this vital sector in Africa’s growth and development. 

Higher production would also boost the agro-industry sector, which includes traders, processors, packers and exporters, and suppliers of agricultural commodities such as machinery, seeds, chemicals, irrigation systems and related equipment.

The need for greater regional food security will spur future development, enhancing Africa’s position as a burgeoning global supplier. Agribusiness players often diversify their operations, providing infrastructure and employment which stimulate middle class formation and have a far-reaching impact due to the multiplier effect. The growth of agribusiness in Africa is closely aligned to power and infrastructure development.

Institutional regulation and economic freedom vary widely across Africa. Given this complexity, our specialist business teams in 20 African countries understand the regulatory environment and are well-positioned to identify suitable local partners and evaluate opportunity against risk.

Access insights and financial support: We offer you access to local intelligence, help develop a roadmap, provide financial support and commercial insights to help you capitalise on the opportunities to drive your strategy.

In-country teams at hand: A resident, regional team with in-country and commercial expertise can help guide you to find the right solution, and navigate different geographies and industries.

We connect you to opportunities: Our well-established presence within Africa and wealth of knowledge within the consumer sector enables us to identify and connect you to opportunities via our extensive network.

A holistic, innovative banking offering: We cover the full consumer value chain across the continent, providing you with access to a full suite of banking products and services, tailored to your consumer industry needs.

 We understand your business needs: We believe in getting to know your business and your business strategy, which is why we invest highly experienced people and time in developing the right solution to not only meet your specific business needs, but also enhance your business performance and growth.

Valuable insights and consumer data: Understanding your consumer market is critical in the sector. We provide in-depth, valuable insights into Africa, its markets and consumers so that you can get the competitive edge in your market.