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Enough of being poor

2018-01-17

In western Africa a new middle class is emerging. Their consumer behaviour is determining the demand for products – home-produced and imported goods, on the internet or at the village market. The people of Ivory Coast in particular are looking to the future with optimism.

Ich bin ein Alternativtext — Models are presenting modern and affordable fashion-collections (c) Brot fü die Welt/Christoph Püschner

By Marcellin Boguy

Marcellin Boguy is a journalist at Notre Voie in Ivory Coast. His specialist area is the life and culture of Ivory Coast.

All contributions

It’s just before eight o’clock in the evening at the Cash Express supermarket checkout at one of the many shopping centres in the Ivorian business metropolis of Abidjan. The shopping trolleys are full and are mostly being pushed by women. When it comes to the question of who in the family does the shopping, Ivorians are traditionalists. When it comes to the question of what, they no longer are: noodles, wine, milk, butter, sausages, biscuits, soaps, shampoos – the country of origin of two thirds of the products is a country other than Ivory Coast.

You won’t find the traditional plantains or palm kernels, or the granulated cassava flour, attiéké, in the trolleys here. The mademoiselles and mesdames buy the staple foods at the traditional markets in the suburbs. What they all have in common is that they are members of the new Ivorian middle class, which is both traditional and modern – no longer poor and not yet wealthy; urban in lifestyle and yet tied to tradition and the consumption habits of their village.

The market research institute, Ipsos, and the consultancy firm, Bearing Point, estimate that the African middle classes will have tripled to 228 million people by 2040, according to a comprehensive study commissioned by the company, CFAO. This growing class of Africans will have money for consumption and new habits – but what habits? The continent’s development depends on this, too.

Ivory Coast had the most prominent middle class in western Africa until the economic crisis in the 1980s and the unrest following the elections in 2010 and 2011, during which 3,000 people were killed. The trend is stagnating. Today two million of the 23 million Ivorians are members of the middle class.

Young, well educated an urban

It's difficult to define the ‘African middle class’. According to a definition by the African Development Bank, people earning between four and twenty dollars a day are middle class. Socio-economic status influences consumption patterns. Middle class people do 65 per cent of their shopping in traditional markets, and the rest at the supermarket, with a strong preference for products from abroad.

The African Development Bank describes this middle class as ‘young, well qualified, urban and employed in relatively stable and well paid jobs’. No more than a quarter of their income goes into buying food – a similar consumption structure to that of Cameroon, Kenya, Morocco and Nigeria, as well as other economies with a growing middle class, like India. The next most important items are accommodation, transport and education. 15 per cent of earnings are saved.

Between Tradition and ‘new Identity’

According to a study conducted by the French market research institute, Ipsos, the households that are defined as middle class are those with a monthly disposable income of 400 to 1,200 dollars. This middle class makes up 16 per cent of Africa’s population. A characteristic of the behaviour of these people is that they’ve moved on from worrying about surviving from day to day, and can even plan for the future – but they have to work hard for it. Some are employed; others are self-employed. Work in the formal sector is often supplemented by work in the informal sector. For example, Eric from Abidjan: ‘I work in the port as a machine technician – but I also run a small bakery on the side.’

It’s also important for them to give the children a sense of their own identity through food, especially at the weekends and on days of celebration. At the same time, though, middle class people are more and more interested in what they can find in the supermarkets

‘This middle class is not only found in the big cities, but also in smaller towns, extending almost into rural areas,’ says Florence de Bigault, Head of the Department of Consumer Research and Markets in Africa at Ipsos. ‘Middle class consumption patterns are very much hybrid. They still get their basic supplies, such as cereals, fish and meat, from traditional markets. On the one hand, they maintain close ties with the villages and still cook traditional dishes; and it’s also important for them to give the children a sense of their own identity through food, especially at the weekends and on days of celebration. At the same time, though, middle class people are more and more interested in what they can find in the supermarkets: milk products, cheese, baked goods, tinned foods, noodles. They shop in the supermarket especially for breakfast – always, though, with a keen eye on the price. Many of these products come from abroad. They claim to be healthy, but many of them are just treats, reinforcing social status by presenting an image of innovation and quality.’

The middle classes consume local processed foods, mostly in the form of juices, biscuits and pre-cooked cereals. ‘They’re considered to be fresher, and people want to support the local economy as well,’ says Florence de Bigault.

Along with the rise of the middle class, another phenomenon has become apparent – eating out. Especially in big towns and cities, parents and children have lunch more often in canteens and small restaurants, as there's no other option due to long journey times. At weekends, fast food chains like Pizza Hut, KFC and McDonald's are very popular in the big shopping centres. As Hubert Kéi, a businessman, puts it, ‘At lunchtimes everyone goes out and does their own thing, and then we invest our evenings in family life, with all of its tensions, between the boys or the husband, all wanting to watch the TV at the same time.’

Christoph Püschner/Zeitenspiegel — Beverages advertisement behind the bronze statue "Demba et Dupont" in the Senegalese capital Dakar, set up in 1923. (c) Zeitenspiegel/Christoph Püschner

Whenever anyone in Ivory Coast makes the leap from poverty to the middle class, their eating habits change, too: as well as the hands, a spoon or a fork is more likely to be used; and there are three mealtimes a day – something that poor families can't afford.

In particular, breakfast as an institution is a middle class phenomenon. ‘For me it’s an honour, having a meal with my family before everyone goes their own way,’ says Baudelaire Kouamé, a young bank employee in Abidjan. While breakfast in poor families consists of the previous evening’s leftovers, middle class breakfasts follow their own rationale, with cornflakes, milk, yoghurt, fruit and juice. There's even margarine now on Ivory Coast tables, as well as more and more bread and croissants, resulting in the frequent opening of new bakeries in Abidjan.

Internet trade and consumption in Ivory Coast

A study by Kantar TNS, the market research division of the British advertising giant, WPP, predicts ‘massive growth in the middle classes in the next ten years brought about by a dynamic business world and increasing purchasing power in Africa’. The study investigates the use of digital social networks on the continent, and identifies big differences compared to Europe or Asia. In Ivory Coast, for example, Facebook and WhatsApp have become real platforms for trade. Only 8 per cent of Ivorians who have an internet connection are not on Facebook.

Kantar has also conducted research into shopping habits on the continent. There is clearly a pride in Africa that gives local businesses an advantage over multinational companies. According to Kantar, this consideration is a factor in the buying decisions of 53 per cent of internet users.

‘100 per cent mobile’ is the company’s prediction

Shopping on the internet is set to increase enormously in the next few months and years. Jumia, a Nigerian company that operates the commercial and shipping platform of the same name on the internet, and has a presence in various African countries, expects sales via smartphones and tablets to dominate e-commerce. ‘100 per cent mobile’ is the company’s prediction.

Jumia has researched online buying behaviour in 15 African countries and has found that 47 per cent of customers’ transactions are conducted on their smartphone or tablet. In Ivory Coast 16 per cent of internet users use Jumia at least once a month – in absolute figures that’s 850,000 Ivorians, of which 42 per cent are women. This amounts to a 27 per cent increase in internet sales compared to 2015. This makes Ivory Coast the forerunner in western Africa. By contrast, the proportion of Jumia users in Ghana is only half – and it's even lower in Senegal.

Africa is a key component of companies’ strategies, because the middle classes are growing rapidly and driving consumption in the process

With the advent of the internet and a growing middle class, there’s a general optimism in Ivory Coast. 63 per cent of Ivorians surveyed by Kantar TNS say that they consider the future of their country to be ‘promising’. 81 per cent even think in terms of their own success. In Europe this figure is 14 per cent.

‘Africa is a key component of companies’ strategies, because the middle classes are growing rapidly and driving consumption in the process,’ says Ndeye Diagne, head of the Kantar TNS study, ‘Insights into French-speaking Africa’.

So it’s the middle classes that will be boosting consumption and determining trends in French-speaking Africa in the next ten years.

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Controversy: Do supply chains need liability rules?

Discussion about the potential supply chain law

The German government is struggling to pass a supply chain law. It is intended to address violations of human rights, social and environmental standards. What would the consequences be for business? A double interview with Veselina Vasileva from GEPA and economics professor Andreas Freytag.

Agricultural prices and food security – a complex relationship

A Contribution by Dr. Fatima Olanike Kareem and Dr. Olayinka Idowu Kareem

High agricultural prices affect developed and developing countries alike, but the problem is aggravated for the latter through the lack of or inadequate resilience measures. Dr. Fatima Olanike Kareem, AKADEMIYA2063, and Dr. Olayinka Idowu Kareem, University of Hohenheim, explain what can be done to mitigate the negative effects on food security.

Earth’s well, all’s well!

A Contribution by Fairtrade Germany

With the annual topic "Earth’s well, all’s well!", Fairtrade Germany is focusing on the concept of agroecology at all levels - and is thus taking the next step towards achieving greater global sustainability. At the Green Week trade fair, Fairtrade Germany will show how this can be achieved taking the cocoa supply chain as an example.

How does the ALDI SOUTH Group buy, Mrs Roach?

A Conversation with Sally Roach

Many of ALDI SOUTH Group supply chains begin in the Global South. How does the food retailer assume its responsibility? Questions for Sally Roach, Senior Manager - International Sustainability Department at the ALDI SOUTH Group.

Ideas on the ground: Local solutions for global challenges

Interview with Sebastian Lesch (BMZ)

A world without hunger and with sufficient healthy food as well as climate-friendly agriculture can only be achieved if ideas are transformed into innovations and ultimately also applied - a conversation with BMZ Head of Division Sebastian Lesch on the Innovation Challenge programme of the new Agricultural Innovation Fund.

Rethinking funding

By Anna Sophia Rainer

Peasant farmers tend to fail due to bank credit limits. But investment could help them generate a sustainable income. This has given rise to an intense discussion about potential digital solutions.

5 questions to S. Fan: Where are the new roads?

Interview with Shenggen Fan

Shortly before ending his position as Director General of the International Food Policy Research Institute (IFPR) Dr. Shenggen Fan talks about the reforms and new modes of operation needed to achieve global food security in the coming decade.

Turning many into one: CGIAR network restructures

A contribution by Jan Rübel

International agricultural research is responding to new challenges: Their advisory group is undergoing a fundamental reform process and unites knowledge, partnerships and physical assets into OneCGIAR.

What it takes now

A contribution by Heike Baumüller

Artificial intelligence, big data and blockchain are the hottest topics of our time. The digital transformation of the African agricultural sector is ready for take-off. What will it take for the future of technology to hit the ground running?

The digitised farmyard

An interactive graphic Jan Rübel

Lots of apps are entering the market, but what really makes sense? For African agriculture, some of it seems like a gimmick, some like a real step forward. So this is what a smallholder farm in Africa could look like today - with the help of smartphones, internet and electricity.

"We are not Uber for tractors"

Interview with Jehiel Oliver

Jehiel Oliver was a successful consultant. One day, he quit his job in investment banking to become a social entrepreneur. His mission: tractors for Africa. Rental tractors. What gave him that idea? Find out in his interview with Jan Rübel.

Video diaries in the days of Corona: Voices from the ground

A contribution by Sarah D´haen & Alexander Müller, Louisa Nelle, Bruno St. Jaques, Sarah Kirangu-Wissler and Matteo Lattanzi (TMG)

Young farmers’ insights on the effects of the COVID-19 pandemic on food systems in Sub-Saharan Africa @CovidFoodFuture and video diaries from Nairobi’s informal settlements.

A global signpost: What way is the market, please?

A contribution by the World Food Programme

There is a clear global task: We need to feed nine billion people by 2050. We, the people of Earth, must produce more food and waste less. That is the top priority of the UN World Food Programme (WFP), too - the description of a challenge.

Karel Prinsloo/Arete/Rockefeller Foundation/AGRA

"Nutrition is a human right"

Interview with Joe DeVries (AGRA)

Joe DeVries is a breeder – and Vice President of AGRA (Alliance for a Green Revolution in Africa). What are the chances and risks of a ’green revolution‘ in Africa? A discourse between Jan Rübel and him about productivity, needs, and paternalism.

Silicon Valley for Africa’s agricultural start-ups

A contribution by Michel Bernhardt (GIZ)

The project “Scaling digital agriculture innovations through start-ups” (SAIS) supports Africans going into business in the agricultural and food sector in scaling their digital innovations and thus reaching out to a larger number of users.

Innovations for a secure food supply

A contribution by German Agribusiness Alliance

The COVID 19 pandemic is hitting developing and emerging countries and their poorest populations particularly hard. It is important to take countermeasures at an early stage. Companies in the German agricultural sector want to make their contribution to ensuring the availability of urgently needed operating resources.

News from the starting block: Changeover

A contribution by Michael Brüntrup (DIE)

The region of Sub-Saharan Africa is on the decisive verge of a great development boost in farming: it could skip entire generations of technological development. But how? About possible roles and potentials of digital services.

"The Green Revolution reaches its limits"

Interview with Stig Tanzmann (BfdW)

Stig Tanzmann is a farmer and adviser on agricultural issues at ‘Bread for the World’. Jan Rübel interviewed him about his reservations about AGRA's strategy.

Microinsurance against climate change

A contribution by Claudia Voß

Climate change is destroying development progress in many places. The clever interaction of digitalisation and the insurance industry protects affected small farmers.

Empowering farmers to control their own data

A contribution by GIZ

A new study on the digitalisation of agriculture puts farmers back at the centre of their own sector, identifies market gaps and gives recommendations on how to support relevant actors.

Cotton of the Future

A Contribution by GIZ

VR glasses are hardly a conventional tool in agriculture: for the past three years, they have been used in rural areas of Burkina Faso and Cameroon as a training tool for sustainable cotton cultivation.

Ebay Against Hunger - How an App Supports Crop Sale of Rural Small Holders in Zambia

Small holders around the world are often forced to sell their harvests below market value due to a lack of market and pricing information. A new app by the UN World Food Programme (WFP) is going to change this.

A project of WFP

Africa's digital disruption

Graphics

What Africa is experiencing in the course of digitisation is a disruption. Here three steps are taken in one, there you remain. In any case, the changes are enormous and bring some surprises. A graphic walk.

Enough of being poor

By Marcellin Boguy

Young, well educated an urban

Between Tradition and ‘new Identity’

Internet trade and consumption in Ivory Coast

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