Middle class in sub-Sahara Africa to double in 8 years

The middle class population in sub-Sahara Africa is expected to double in the next eight years, driving up consumer spending.

This is further expected to grow the economies of the region by 5.4 per cent this year, higher than the projected world average of 3.5 per cent this year, analysts at British American Asset Management have said.

The middle class population is set to hit 626 million by 2020 and 1.232 billion by 2030, given the high growth potential of African economies, which has also seen interest from international companies making investments on the continent.

“The GDP per capita has increased substantially, implying that Africa’s household spending should increase tremendously. The middle class population in Kenya is growing significantly, going by the developments we are seeing in the economy,” British American Asset Management managing director Edwin Dande said while releasing the outlook of the economy this year.

Kenya’s middle class population is currently estimated at close to 16 million people, representing about 43 per cent of the total population.

The analysts, however, indicated that Kenya’s GDP is to grow by 5 per cent this year, given the improving conditions in the environment.

Already, inflation has fallen to 13.06 per cent in April this year from a high of 19.72 per cent in November last year.