Growing Middle Class and Consumption
Driving East Africa into Digital Technology and Services

From the demographic dividend of a young and rapidly expanding population to an increasingly affluent and aspirational middle class, Africa has the potential to become a new powerhouse of production and consumption in the 21st century, just as Asia was able to do in the late 20th. Over the past decade, consumer expenditure in the the league of East African Nations have grown at an average rate of 10.2% annually. This is testament to the demand potential and purchasing power of East Africans for digital and technology services.

e-Commerce, Ride Sharing and Blockchain as Key Growth Areas in Africa

In particular, Kenya is among six countries (apart from Egypt, Ethiopia, Nigeria, Rwanda, and South Africa) that were identified as leaders in expansion of African share in the global digital economy, according to a new research by BDO.

Boasting a compounded annual growth rate of almost 18% growth in disposable income and consumer expenditure, respectively, Kenya has led not only the East African but also the African-wide digital revolution over the past decade, at its currently 80 percent internet penetration. The potential business segments include e-commerce, taxi hailing services and blockchain.

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