Africa’s home appliances market is thriving
Foreign companies are capitalising on the surging demand for home kitchen appliances across key East African markets, African Business said in a report.
As Africa experiences an accelerated urbanisation rate of 4.4% annually, the fastest globally, at least 40% of its populace now resides in urban areas – a figure projected to double by 2050.
This swift urban shift, underpinned by a booming housing market, is causing a significant demographic shift. Rapid urbanisation and a burgeoning middle class are increasing the demand for housing, stimulating the real estate sector.
Amid this housing boom, Knight Frank’s 2023 Wealth Report highlights a shift in Kenyan investment trends. In 2022, affluent Kenyans funnelled 40% of their portfolios into commercial real estate, eclipsing the meagre 18% dedicated to stocks.
This year, over 60% of Kenyans with a net worth exceeding $1m intend to invest in private rental properties, a trend that could boost demand for kitchen appliances.
Despite growing disillusionment with the volatile domestic stock market and attractive yields of government bonds, the real estate market remains resilient. It serves as a hedge against economic uncertainties like inflation and currency depreciation.