• Bloomberg has an interesting story about the burgeoning African middle class, which it says “prompted Wal-Mart Stores on Sept. 27 to propose purchasing Massmart, the continent’s third- largest retailer, for $4.6 billion. With 288 stores in 14 African countries, purchasing Johannesburg-based Massmart would enable Wal-Mart to profit from one of the world’s fastest- growing retail markets.
“Africa’s population reached 1 billion last year and after economic growth averaging 4.9 percent from 2000 to 2008 the number of families with an income of more than $20,000 a year has exceeded India’s, according to a report by McKinsey & Co. With China investing in the continent to exploit its mineral wealth and the population rising by more than 2 percent a year, that market is set to expand.”
And while Walmart is expected to face challenges as it works to set up a supply chain infrastructure that is reliable, efficient and effective, the opportunity to get relatively early to cater to this growing customer base is simply too enticing to resist.
“Africa’s population reached 1 billion last year and after economic growth averaging 4.9 percent from 2000 to 2008 the number of families with an income of more than $20,000 a year has exceeded India’s, according to a report by McKinsey & Co. With China investing in the continent to exploit its mineral wealth and the population rising by more than 2 percent a year, that market is set to expand.”
And while Walmart is expected to face challenges as it works to set up a supply chain infrastructure that is reliable, efficient and effective, the opportunity to get relatively early to cater to this growing customer base is simply too enticing to resist.
- KC's View:
