Despite the toughest consumer climate in years, Africa’s youngest consumers are powering a potential retail reset that blends digital discovery with hyper-local focus, redefining what it means to consume, connect, and aspire.
A survey of 6,000 urban consumers across Egypt, Morocco, Ethiopia, Nigeria, South Africa, and Kenya places consumer sentiment at -23%, the lowest since BCG began tracking it in 2018. It highlights that three-quarters of Africans consistently worry about their finances; more than half are saving less, and nearly a third report lower household income than six months ago. While most consumers expect to spend more, responses indicate that spending growth is inflationary rather than driven by choice.
Gen Z defies this trend by displaying confidence about the future. “This is a story of hope under strain,” said Thomas Jensen, Managing Director and Senior Partner at BCG Nairobi and co-author of the report. “Yes, Africa’s consumers are facing tough economic headwinds, but with 70% of Gen Z expecting their financial situation to improve in the next year, their optimism is already shaping what, how, and why Africa buys.”
Their optimism carries demographic weight. In the six markets surveyed, Gen Z already comprises 119 million people, or 18% of the population, and is expected to grow to 167 million by 2050, signaling a youth bulge. Even under financial strain, this cohort refuses to compromise on quality or aspiration: only 8% would buy lower-quality food to save money, and fewer than 20% would choose a used car over a new one. Gen Z allocates about 30% of monthly budgets to non-essentials, compared with 22% for older generations. Moreover, their aspirations are globally connected, with 24% saying they prefer global brands compared with 19% of Millennials and Gen X.
This “youth bulge” is not merely a demographic fact but a transformative market force. “Gen Z’s optimism and digital fluency are reshaping Africa’s retail landscape,” added Zineb Sqalli, Managing Director and Partner at BCG Casablanca, co-author of the report and Africa node lead for BCG’s Consumer Practice. “We’re seeing how they blend local trust with global aspiration, moving fluidly between online discovery and offline fulfilment.”
Although up to 90% of Africa’s retail remains informal, Gen Z’s influence is driving the growth of a hybrid retail model, where social commerce becomes the storefront to traditional outlets. Sixty-three percent of consumers now browse for products online or via omni-channel routes, and 30% say social media is a primary purchase driver, with platforms like WhatsApp, TikTok, and Instagram being top influencers in Kenya, Nigeria, and South Africa.
This retail revolution is closely tied to the continent’s digital payment boom. With smartphone penetration projected to reach 87% by 2030 and 60% of adults now holding a financial account, the foundations for inclusive, scalable commerce are being laid. The rapid adoption of mobile money and fintech solutions means young Africans are not only more likely to interact with brands digitally but are also leading the way in credit adoption. Nearly 42% of Gen Z Africans own a credit card, on par with Millennials, making them the fastest-growing segment in new credit originations. This points to a generation finding financial agency to support both aspiration and inclusion.
Several examples illustrate this trend in action. In Kenya, the widespread adoption of mobile money and digital payments has transformed more than 250,000 dukas into hybrid “click-and-mortar” shops. In South Africa, the introduction of peer-to-peer delivery and smart locker systems has enabled a new wave of sustainable, affordable commerce. Meanwhile, in Morocco, small grocers and kiosks remain as vital as large retailers, underscoring that Africa’s retail future is hybrid, not an either-or proposition.
For business leaders, the opportunity is clear: the time to act is now. Gen Z’s habits and loyalties are being formed today, and brands that embed themselves in their digital lives, offer responsible credit, and connect online discovery with local fulfilment will earn lasting trust.
The growth play for consumer companies is to build relevance, trust, and access for Gen Z and youth by:
- Balancing affordability with aspiration – offering products that combine accessibility with signals of quality and modernity
- Treating social media platforms like WhatsApp, TikTok, and Instagram as direct commerce channels
- Responsibly integrating digital payments, wallets, and micro-credit to unlock spending potential
- Designing end-to-end journeys that let consumers discover online and fulfil locally through community anchors
- Reimagining value through hybrid retail that connects digital influence with trusted, local experience
“The real opportunity is not to bet on a sudden consumer boom in Africa,” said Vishakha Chopra, Project Leader at BCG. “It is to build relevance and trust now, as this generation earns, aspires, and grows into economic influence. African Gen Z is a formidable demographic force that is forming the loyalties that will define the next 30 years. Companies that invest in them early will capture both growth and lasting influence.”
//Staff writer
