Nigerians and Kenyans are confident about growth in the market and expect their incomes to grow next year, this is according to a Standard Chartered commissioned survey targeting 7,000 emerging affluent consumers across seven of its markets.
"The majority of the people surveyed saw growth next year being good and when we looked at some of the African numbers, nine out of ten Nigerians, seven out of ten Kenyans expected to see their incomes grow next year," said Razia Khan, Chief Economist Africa at Standard Chartered Bank.
Khan says what she found interesting especially considering where we are today considering China’s growth outlook and the correction in commodity prices, was how confident emerging markets are.
“There's been a great deal of bearishness about emerging markets growth prospects, perhaps the big take away for me, from this survey was that when it comes to the emerging affluent in emerging markets themselves, they are remarkably confident about prospects," said Khan.
Another interesting find is that buying property first is a priority for Kenyans followed by starting their own businesses.
"What was also interesting was to see the consistency of aspiration across the emerging affluent, regardless of the markets that they were living in,” said Khan.
“Whether we are considering the more developed market such as Hong Kong and Singapore, whether we are looking at the likes of China, Indonesia, India or even Kenya or Nigeria.”
Nigerians appear to prioritise saving, the survey showed that they expected to put aside a larger portion of their income towards savings compared to the other surveyed countries in the next 12 months.
Khan agrees that confidence is an important driver for an economy so if people are confident they then make confident decisions in the market somewhat resulting in a self-fulfilling prophecy.
The report however did relay slightly more subdued confidence levels in Kenya compared to the other sampled markets.
“In Kenya's case the issue of insecurity is of course something that has understandably weighed in confidence but for the most part we were seeing a picture of a great deal of optimism around future prospects,” said Khan.
The survey targeted 7,000 emerging affluent consumers across seven of its markets - Hong Kong, China, India, Indonesia, Kenya, Nigeria and Singapore.
“What the consumers from these very economies are telling us is that they are confident about the near term mostly, confident about being able to achieve their own ambitions and their own wealth and savings goals over the next five to ten years and that has got to be a significant driver in terms of the growth outcomes that we eventually see,” said Khan.