As economic uncertainties loom large across the globe, one might expect younger consumers, especially those belonging to Generation Z, to tighten their belts and prioritize only the essentials.
However, Africa’s Gen Z is proving to be anything but predictable. For them, maintaining their ‘steeze’—a unique blend of style and ease—remains a top priority, even amid financial challenges. This generation is not just redefining what it means to be stylish; they are also challenging conventional wisdom about consumer sophistication.
Balancing the pursuit of premium experiences with practical decisions around health, wellness, and financial investments, Gen Z is emerging as a dynamic force in the marketplace.
Africa’s Generation Z (those born between 1997 and 2012) will account for US$801 billion in consumer spending in 2025, making them the largest spending cohort on the continent.
According to new projections by the World Data Lab, this figure is expected to surpass US$1 trillion by 2032, a milestone that reflects more than economic growth, signalling a broader global transition in consumption patterns, from the traditional “Global West” to emerging regions.
By 2030, Gen Z will become the first generation in modern history whose global spending power is no longer concentrated in the Global West (defined as North America, Europe, and a few advanced economies). The pivot to emerging markets will be led by Africa. This shift will not be driven by political elites or industrial giants, but by 460 million Gen Z Africans transforming consumption through cities, smartphones, and rising aspirations.
In 2025, Gen Z is projected to outspend every other generation in Africa. In a consumer economy still largely focused on essentials, this group already leads in sectors such as food, housing, and transport. On average, an African Gen Z individual will spend US$1,277 next year.
The breakdown of this spending illustrates priorities shaped by both economic realities and modern lifestyles:
Food: 39.3% (US$502)
Housing: 14.9% (US$190)
Transport: 9.6% (US$122.5)
Clothing: 6.3% (US$80.7)
Furnishings: 5% (US$63.4)
Miscellaneous: 4.6% (US$58.1)
Education: 4% (US$50.5)
Restaurants: 3.9% (US$50.4)
Communications: 3.4% (US$44)
Alcohol: 3.3% (US$42.6)
Health: 3.3% (US$41.8)
Recreation: 2.4% (US$30.4).
This spending profile is unlikely to remain fixed. Gen Z is also the most digitally connected, globally aware, and entrepreneurially driven generation Africa has witnessed. While older cohorts focused spending on survival, Gen Z is now spending on mobility, self-expression, and experience. These values are set to reshape the nature of consumption across the continent.
Generation Alpha (born after 2012) will surpass Gen Z in population size by 2025. However, Gen Z will remain the dominant consumer generation until at least 2040. Their current economic lead is substantial, and they benefit from better access to employment, digital tools, and educational pathways.
By 2040, Gen Z will have transitioned from youth to middle age. As they enter new life stages – purchasing homes, raising families, seeking healthcare – they will carry forward their consumption habits and expectations. This will create new pressure points for service delivery, infrastructure, and policy design.
Urbanization and technology are two significant factors influencing Gen Z consumer behaviour in Africa. As more young people migrate to cities in search of better opportunities, they bring with them diverse tastes and a desire for products and services that reflect their urban lifestyle. The rise of e-commerce platforms and digital payment systems has made it easier for them to access a wider range of products and services than ever before.
Perhaps most impressive is Gen Z’s approach to saving and investing. In a continent where financial literacy varies significantly, African Gen Z is emerging as one of the most informed groups when it comes to managing money.
This demographic is increasingly utilizing digital banking platforms, investment apps, and other financial tools to secure their financial futures. They are not just saving money; they are investing in stocks, and bonds, and even exploring newer financial instruments like cryptocurrencies.
This financial savvy is partly driven by necessity. Many African Gen Zers have witnessed firsthand the economic instability in their countries—fluctuating currencies, inflation, and limited job opportunities. As a result, they are more motivated to understand and manage their finances better than any previous generation.
They are also keenly aware of the importance of financial independence and are taking steps to achieve it, whether through traditional savings accounts, investment in stocks, or participation in the burgeoning cryptocurrency markets.
Despite economic challenges and limited resources, Gen Z is ‘living life’ to the fullest. They are actively seeking out rich experiences, prioritizing wellness, and making informed financial decisions—all while navigating a complex and often volatile economic landscape. Their ability to balance these seemingly conflicting priorities—style and substance, spending and saving, health and hedonism—sets them apart as a truly unique consumer group.
This balanced approach is not just about making ends meet; it’s a deliberate lifestyle choice that reflects their values and aspirations. They are more likely to invest in experiences that offer personal growth, social connection, and lasting memories. Whether it’s through travel, cultural experiences, or social causes, they are constantly looking for ways to enrich their lives and make a positive impact on the world around them.
Understanding the nuanced behaviours of Gen Z is crucial for brands looking to connect with this dynamic demographic. They are not just another consumer group; they are a generation that is reshaping the future of consumption in Africa. Brands that want to succeed with Gen Z must be willing to engage with them on their terms, offering products and services that align with their values, preferences, and lifestyles.
