Africa is currently one of the last major growth markets for many products, particularly consumer goods. The African population continues to grow significantly, while many other parts of the world are experiencing demographic stagnation. The majority of global population growth is coming from Africa. Many African countries are also seeing the rise of a growing middle class that primarily consumes European and international products. This makes Africa an especially interesting market for wine and spirits.
Why are wine and spirits particularly in demand in Africa?
Africa has no significant wine or spirits production, with the exception of South Africa. There is some small-scale production in North African countries like Algeria, Tunisia, Morocco, and Egypt. This means that Africa’s growing middle class, which enjoys wine, relies on imports from wine-producing countries.
How available is wine in Africa?
In many parts of Africa, wine is not as commonly found in restaurants, hotels, or supermarkets as it is in Europe. When available, it often comes from France or Italy, and to a lesser extent from Spain or Portugal.
Africa is a large continent. Which countries are particularly interesting for wine exports?
It’s important to take a closer look at Africa. The common perception of Africa in Europe is often negative, focusing on wars, crises, conflicts, or diseases. But Africa is vast, encompassing 54 countries, each with different levels of stability, political systems, and economic growth rates. Among these 54 nations, some have been among the fastest-growing economies in the world, with sustained annual GDP growth of over 5% to even 10% in recent years. These are countries that are becoming more economically and legally stable and developing international trade relations.
Wine in the desert - South Africa
Which specific countries stand out?
The largest economies in Africa include Nigeria, Africa’s biggest economy, South Africa, the second-largest economy on the continent and Egypt, a similarly sized economic powerhouse. Other attractive markets for wine exports include popular tourist destinations such as Namibia, Mauritius, Kenya, and Tanzania (including Zanzibar). In West Africa, Ghana, Côte d’Ivoire, and Senegal are also promising. Additionally, there are smaller rising stars such as Rwanda, Uganda, and Gambia.
Why should wine producers consider Africa as a market?
Traditional wine markets are shrinking, and many producers are struggling with declining margins and sales volumes. In some classic markets, wine consumption is even falling. Africa presents the opposite scenario: population growth, a rising middle class, and an overall increase in alcohol consumption. This applies not only to wine but also to spirits and mixed alcoholic beverages. Wine has increasingly become a staple in Africa, enjoyed in restaurants, at conferences, and at social events.
How challenging is it to do business in Africa?
There’s no need to be afraid of Africa. While it remains an unfamiliar market for many, culturally, it is much closer to Europe than some might assume. Moreover, Africa has signed a major free trade agreement, the African Continental Free Trade Agreement (AfCFTA), which is similar to the Schengen Agreement for the European single market. This makes it easier to think in terms of regional markets rather than just individual countries.
Any final tips?
Africa is not a market you can understand from behind a laptop in Europe. Wine marketing in Africa is all about people and relationships. Africans want to meet and get to know the people behind the businesses they are dealing with.
Dr. Christian Lindfeld is the founder and CEO of Africa Ventures Advisory. He is an entrepreneur, consultant, and investor, having founded several companies and bringing over 15 years of experience in global management consulting and leadership. In recent years, he has increasingly focused on consulting for the wine industry, particularly in expansion and investment projects, market development, and as a board member of 4G Wines AG (Switzerland/South Africa).
