By Marco Passoni
I have been fortunate to spend the last two weeks on safari in Africa, enjoying the stunning appeal and culture of this incredible continent. Africa is already becoming a key destination for global tourism, drawing visitors with its unique attractions, rich cultural heritage, and natural wonders. Today, countries like Rwanda and Namibia are now also gaining international recognition, alongside more well-known tourist destinations such as South Africa or Egypt, thanks to their eco-tourism and adventure tourism offerings.
In fact, travel recovery in Africa was among the fastest in the world, reaching 92% of pre-Covid levels by September 2023, compared to 84% worldwide. The influx of international tourists presents a significant opportunity for travel retailers to provide tailored offers to this growing segment.
The real potential of Africa is in the continent itself
But the real potential of Africa is in the continent itself. Digital penetration and use in Africa are still well below the global average, meaning increased connectivity and engagement will bring further and more accessible opportunity. Today, only 36% of Africans interact online, and less than a third (30%) of travel is booked online, compared to about half worldwide. But a tech revolution is underway in the continent, and the growth of e-commerce and digital engagement will open new doors for travel retail. This opportunity will be enhanced by the growing middle class and global outlook. The middle class in Africa has tripled in the last 30 years to hit about 300 million people, driven by increased urbanisation and economic growth. With more disposable income, African consumers are increasingly looking for premium products, luxury goods, and international brands.
There is also a hunger for exploration, both within Africa and the outside world. This is a young population, with many countries boasting a median age of less than 22, and by the 2040s, Africa could account for up to 40% of the world’s births. While many established economies and markets begin to age and stagnate, Africa is young, vibrant and emerging.
While many established economies and markets begin to age and stagnate, Africa is young, vibrant and emerging.
In fact, as we heard at the MEADFA Conference in Ghana last year, Africa is “open for business”. This is music to the ears of anyone eyeing the opportunity, but it also must come – as always – with a warning and a challenge. It is vital, for example, to remember that Africa is made up of more than 50 countries, each with their own cultures, preferences and bureaucracies. All of these must be understood and accounted for by anyone seeking to operate successfully in the market. China’s growth was driven by working alongside those on the ground, with local understanding and contacts, the same will be needed here. Avolta’s FAAN partnership, which recently opened a new store at Murtala Muhammed International Airport in Lagos as part of a network of international and domestic airports, is a great example.
There is a huge entrepreneurial mindset [with] incredible untapped talent in the market, but too little opportunity.
Most excitingly for those looking to operate within the African market, there is a huge entrepreneurial mindset present on the continent. There is incredible untapped talent in the market, but too little opportunity. Travel retail stakeholders, from retailers to brands, would do well to engage this group. They know the people and the local opportunities better than any of us ever will. They understand the regulatory challenges which will be faced and how best to navigate. As always when looking at a new opportunity, we must remember that we know travel retail – the local people know their country and, therefore, our customers. A one-size-fits-all approach won’t work in Africa, but for those willing to invest in research and cater to local tastes, the rewards can be significant.
Africa is no longer a market of tomorrow – it’s a market of today. Businesses which move quickly to establish themselves in the right way will be poised to reap great rewards. That, as always, means a tailored offer, engaged with the needs of local consumers at every level. Success in Africa will mean a market built both for and with Africans – and the potential is incredible.
