Africa’s 15 richest cities in 2030
In a report published by Oxford Economics, a British firm that specialises in global forecasting and quantitative analysis for business and government, Africa’s growth trend will continue.
Growth in purchasing power will be accompanied by a redistribution of income across the continent.
Africa has recorded an average annual economic growth of about 5% since 2000. The continent’s average GDP growth will be higher than in other parts of the world in the next 17 years, the report suggests.
Dar es Salaam in Tanzania and Angola’s capital, Luanda will join Africa’s club of urban economic giants, alongside Cape Town and Johannesburg.
As their economies and population grow, urbanisation in Africa is growing at a faster pace compared to other continents.
The study, published on 8 November, covers 96 cities – in 43 countries – with the largest economies and population rates.
Africa’s most significant cities contribute about 36% ($ 700bn) to the continent’s GDP; a figure that is expected to increase to 1,700 billion by 2030, the report says.
A total of 51 of the 96 cities surveyed will register a 50% population growth. Lagos, the economic capital of Nigeria, will become the most populous city on the continent in 2030 with some 25 million inhabitants.
Dar es Salaam will register the fastest growth in the number of households in the emerging middle class ($5,000 – $20,000 per year in revenue).
With the highest GDP in 2030, Johannesburg will see a rise in rich households (475,000) earning more than $70,000 per year.
Six out of the top 15 cities in terms of per capita income will be South African in 2030.
The first position, nonetheless, will be occupied by Libreville, the capital of Gabon, in central Africa.
Disposable incomes will increase by an average of 5.6% per year and the total purchasing power is expected to increase from $420bn to $1trn.
Growth in purchasing power will be accompanied by a redistribution of income across the continent. And Sub-Saharan Africa will experience a more significant growth, ahead of North and South Africa.
Come 2030, the more developed cities of today, like Johannesburg and Cairo will see their purchasing power doubling, while Abuja, the Nigerian capital, and Huambo in Angola, will see their purchasing power increase by five-fold.
Consumer spending, in cities surveyed, will see a marked rise in the area of culture and leisure (291% in 2030) as well as the services sector. Food, on the other hand, will record the highest of consumer spending.