For a continent long recognised for its youthful population, demographic trends are now translating into significant market influence.
New projections from the World Data Lab’s “Gen Z and the Future of the African Consumer” indicate that Africa’s Generation Z (individuals born between 1997 and 2012) is poised to command US$801 billion in consumer spending by 2025, establishing them as the largest spending cohort across the continent.
This figure is projected to exceed US$1 trillion by 2032, a milestone signifying more than just economic expansion. It points to a broader global shift in consumption patterns, moving away from the traditional “Global West” towards emerging regions.
By 2030, Gen Z will become the first generation in modern history whose global spending power is no longer primarily concentrated in the Global West (comprising North America, Europe, and select advanced economies).
Africa is set to lead this pivot to emerging markets. This transformation will not be driven by political elites or industrial giants but by 460 million Gen Z Africans reshaping consumption through urbanisation, smartphone adoption, and increasing aspirations.
The Ascendant Young Consumer
In 2025, Gen Z is projected to outspend every other African generation. Even within a consumer economy still heavily focused on essential goods and services, this demographic already leads in sectors such as food, housing, and transport. On average, an African Gen Z individual is expected to spend US$1,277 next year.
The breakdown of this projected spending reveals priorities shaped by both economic realities and contemporary lifestyles:
- Food: 39.3% (US$502)
- Housing: 14.9% (US$190)
- Transport: 9.6% (US$122.5)
- Clothing: 6.3% (US$80.7)
- Furnishings: 5% (US$63.4)
- Miscellaneous: 4.6% (US$58.1)
- Education: 4% (US$50.5)
- Restaurants: 3.9% (US$50.4)
- Communications: 3.4% (US$44)
- Alcohol: 3.3% (US$42.6)
- Health: 3.3% (US$41.8)
- Recreation: 2.4% (US$30.4)
This spending profile is likely to evolve. Gen Z is also the most digitally connected, globally aware, and entrepreneurially driven generation Africa has ever seen.
While older generations prioritised spending on basic needs, Gen Z increasingly allocates resources towards mobility, self-expression, and experiences. These evolving values are poised to redefine the nature of consumption across the continent.
Kenya: A Microcosm of Youth Economics
Kenya stands out as an example in terms of both its demographic weight and economic activity. It ranks as the fifth-largest Gen Z consumer economy in Africa, following Nigeria, Egypt, South Africa, and Ethiopia.
By 2025, an estimated 17 million Kenyan Gen Z individuals will account for US$34 billion (KES 4.4 trillion) in spending.
A substantial portion of this economic influence is concentrated in urban centers. Nairobi alone is projected to generate US$10.1 billion in Gen Z spending—nearly one-third of the national total.
Other key urban contributors include Mombasa (US$1.1 billion) and Kisumu (US$533 million). However, the significance extends beyond absolute spending volume.
Cities such as Meru (+10.1%), Thika (+8.1%), and Ruiru (+7.9%) are anticipated to experience the fastest Gen Z spending growth rates through 2035. These emerging urban centres will likely become crucial markets and innovation hubs in the coming decade.
This geographic data underscores a critical insight: Gen Z’s economic impact is not evenly distributed. It is concentrated in urban areas with established infrastructure, employment opportunities, and digital connectivity. These are the regions where businesses and policymakers should strategically focus their efforts.
Wolfgang Fengler, CEO, World Data Lab, notes, “As a group, Gen Z is currently the largest economic bloc who have access to more disposable cash than their parents but who also have higher aspirations for their spending.”
Generation Alpha Rising, But Gen Z Maintains Economic Dominance
While Generation Alpha (those born after 2012) is projected to surpass Gen Z in population size by 2025, Gen Z will remain the dominant consumer generation until at least 2040.
Their current economic advantage is considerable, benefiting from greater access to employment, digital tools, and educational opportunities.
By 2040, Gen Z will transition into middle age. As they navigate new life stages – including purchasing homes, raising families, and seeking healthcare – they will carry forward their established consumption habits and expectations. This will create new demands on service delivery, infrastructure development, and policy formulation.
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Implications: A Reshaped Consumer Landscape
The broader implication is that Africa’s consumer transformation is being propelled from the ground up. This is not a narrative of elite influence or export-driven growth. Rather, it is the manifestation of a demographic dividend through everyday transactions, youthful ambition, and the widespread adoption of a digital-first economy.
In the years ahead, the responses of governments, businesses, and civil society to Gen Z’s growing economic power will be crucial in determining whether Africa’s future is one of inclusion and opportunity or marked by inequality and exclusion.
The consumer landscape has fundamentally shifted. The dominant consumer is Generation Z.
