Furniture - A Growth Oriented Industry

Africa constitutes 16.36% of the total world population and contributes 3% to the world Gross Domestic Product (GDP). Africa is a huge pool of population, which is projected to expand and grow rapidly. By 2050, 2.4 billion more people are expected on the planet out of which 1.3 billion are expected to be born in Africa. The majority of the world’s population growth is expected to take place in Africa. It is said that where there is population, there are enormous opportunities. Business opportunities is one the aspect of this broad spectrum of opportunities.

With the growing population in Africa demand for home and office accommodation is simultaneously increasing. When people move into a new home, they need a bed to sleep on, wardrobes for their clothes, chairs, a dining table, sofas, kitchen cabinets and all kinds of furniture. Like households, offices also buy a lot of furniture too. Africa’s rapidly growing urban population and their spending capacity, along with the growing economy are the primary reasons why furniture business is enjoying the best time of its life.

Total furniture imports into Africa amounted to US$ 3.6 billion in the year 2013. Ten main furniture importing African countries (each of them importing over US$ 100 million of furniture in 2013) are Angola, Morocco, Libya, Nigeria, Algeria, Kenya, Egypt, Ghana and Sudan.

Growth factors Urbanisation process is expected to be very rapid, particularly in Sub Saharan Africa and large urban areas will be the frontiers of economic growth with important implications for the increase of furniture consumption. Despite political instability and relative poor infrastructure level in some areas, there is evidence of numerous urban centres, which offer potential for growth for the furniture market. These cities are increasingly diversifying their economy. In recent years, huge investments have been made in real estate, tourism and hospitality industry, culture and entertainment, which have boosted demand for the furniture sector. More and more number of people are moving to cities from villages, in order to seek better medical facilities, education, sanitation and employment opportunities.