With Africas population projected to double by 2050, the continent is poised to birth a billion new lives. Yet, economic constraints mean the majority of this booming demographic risks becoming non-consumers-people unable to access or afford goods and services they need, let alone want.
At the recent Africa Prosperity Summit , hosted by early-stage VC fund Ventures Platform in Lagos, this challenge took centre stage, prompting investors and thought leaders to discuss how to transform Africa's untapped potential into tangible economic growth.
Kola Aina, Founding Partner of Ventures Platform, set the tone with a concerning warning. "Africa's massive population boom is happening at the same time global venture capital is on a decline. Since the post-COVID peak of venture capital investments in 2021- influenced by the ZIRP Zero Interest Rate Policy era-global venture capital flows have declined by 70. Africa has experienced a 67 decline, despite requiring 10x more capital to address infrastructure gaps and non-consumption."
Africa's current infrastructure and investment levels are ill-equipped to meet the needs of its growing population. Non-consumption-the inability to access goods and services-is the key issue. Without intervention, the one billion Africans expected by 2050 could remain outside the economic fold, posing risks to regional stability and global progress.
In a subsequent Q A session, Aina, the Convener of the Africa Prosperity Summit, hosted Haresh Aswani, Managing Director - Africa of Tolaram Group, notable for its dominant position in the Nigerian FMCG market. Aswani shared insights into how Tolaram has successfully transformed Africa's non-consuming population into active consumers, detailing the group's strategic approach to market dominance, noting the opportunity and challenge are immense.
