• Gen Z set to drive Africa’s retail growth, says BCG consumer survey

• Young consumers prioritize quality, global brands, and hybrid shopping behavior

• Gen Z optimism contrasts with broader financial pessimism across older generations

Africa’s Gen Z consumers are expected to drive the continent’s retail growth over the next decade, supported by distinct consumption patterns that include a strong focus on quality, significant discretionary spending, a preference for international brands, and a blended online-offline shopping journey, according to a report released by the Boston Consulting Group (BCG) on Nov. 10, 2025.

The report, titled 119 Million Reasons for Optimism: How Young Consumers Are Reshaping Africa’s Retail Future, is based on BCG’s Africa Consumer Sentiment Survey conducted in July 2025. The study polled 6,275 urban consumers across Egypt, Morocco, Ethiopia, Nigeria, South Africa, and Kenya, which together account for most of Africa’s GDP and consumer spending.

Gen Z Stands Out Amid Broad Consumer Pessimism

Despite the momentum among young consumers, overall sentiment on the continent remains low. BCG’s index fell to minus 23 percent, the weakest level since the survey began in 2018. Three-quarters of respondents said they were worried about their financial situation, more than half reported saving less, and nearly one-third said their household income had declined compared with six months earlier.

Gen Z breaks this pattern. Although 51 percent of people aged 18 to 27 rated their financial situation as poor, 70 percent expect it to improve within a year. This optimistic cohort represents 119 million people in the six surveyed countries, or about 18 percent of their combined population, making it one of the strongest forces behind future retail expansion.

Young Africans are also less likely than older generations to compensate for financial pressure by choosing cheaper or lower-quality products. Only 8 percent of Gen Z respondents said they would switch to lower-quality prepared meals to save money, compared with 15 percent of Gen X consumers and 20 percent of Baby Boomers.

High Aspirations and Strong Discretionary Spending

This preference for quality is consistent across product categories. Only 10 percent of 18-to-27-year-olds said they would switch to cheaper beverage brands, a lower proportion than in any older age group. For larger purchases, less than one-third said they would cut back on leisure activities, and only 19 percent would opt for a used car instead of a new one, compared with 43 percent among Baby Boomers.

Gen Z also devotes a larger share of its monthly budget to non-essential spending. Young adults allocate about 30 percent of their expenditures to items such as dining out, entertainment, and personal care, while older generations spend an average of 22 percent on the same categories.

Preferences are also strongly international. Twenty-four percent of Gen Z consumers prefer global brands, compared with 19 percent among Millennials and Gen X, and 12 percent among Baby Boomers. To finance these choices, many young Africans rely on formal financial tools. Credit card ownership stands at 42 percent for Gen Z, almost matching the 43 percent rate among Millennials. Adoption of Buy Now, Pay Later options is rising as well.

Omnichannel Habits and Digital Influence

Gen Z consumers mix online product research with in-store purchases. They frequently rely on search engines, social networks and retailer websites to learn about products, but many still prefer to complete transactions in physical stores. This hybrid shopping behaviour is spreading across age groups. Today, 63 percent of African consumers research products online before buying, even when the final purchase happens in a store.

To help brands and retailers capture the full potential of this large, connected and ambitious consumer base, the report highlights several strategic priorities. Companies will need to design product portfolios that combine affordability with clear signals of quality and modernity, and they will need to build engagement by using the platforms, formats and messages that shape Gen Z’s daily environment. BCG also notes that brands should integrate digital payments and responsible microcredit options directly into the purchasing journey to unlock spending power. Finally, the firm emphasizes the importance of offering a hybrid shopping experience in which online discovery and in-store purchasing complement one another, and where platforms such as WhatsApp, TikTok and Instagram function as direct commerce channels where product information, persuasion and buying increasingly take place in the same space.

Walid Kéfi