Importers of Furniture in Africa Reaping Benefits

The furniture business continues to boom in many African markets as the demand for home and office accommodation grows across Africa.

Africa’s growing economy and its large and rapidly growing urban population are some of the reasons why the furniture business is experiencing good times on our continent.

Africa’s Real Estate Boom Boosting Furniture Sales

From Lagos in West Africa to Nairobi in East Africa, it is very difficult to not notice the vast amount of construction work in many of Africa’s cities and towns.

Residential estates and complexes, office buildings, guest house lodgings, three and five-star hotels, new schools and campuses are rising up everywhere. The demand for all kinds of accommodation is rising very fast on the continent and there is a growing investment in real estate to satisfy this demand.

As more people move into new homes and open new business offices, furniture will be required. When new schools are built, desks and chairs will be needed. New hotels will often require tastefully designed beds, wardrobes and several other fixtures and fittings.

As a result, higher demand for home and office accommodation is leading to a high demand for furniture pieces.

Apparent furniture consumption (at production or import prices, excluding retail mark-up) amounts to US$ 9.6 billion. Africa accounted for roughly 2.5% of world furniture consumption in 2017 with a per capita furniture consumption of US$9, compared to a per capita average of US$12 recorded by Asian countries. 

Over 60% of the total furniture market in Africa is satisfied by local manufacturers. Total Africa furniture production amounts to approximately US$ 7.5 billion. Almost 15% of local manufactured furniture is exported, with main exporting countries being South Africa, Egypt, Morocco and Nigeria. 

Real furniture consumption (at production or import prices, excluding retail mark-up) amounts to roughly US$ 9.5 billion. Main markets with over $500 million of furniture consumption are South Africa, Algeria, Nigeria, Egypt and Morocco. 

Urbanisation Increase Demand for Furniture

Urbanisation process in many parts of Africa is expected to be very rapid, particularly in Sub Saharan Africa and large urban areas will be the engine of economic growth with important catalysts for the increase of furniture consumption. Despite political instability and relative poor infrastructure level, there is evidence of a number of 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.

In West Africa the leading furniture consumer is Nigeria (a large fast growing market), followed by Ghana and Ivory Coast. In West Africa more than 70% of furniture consumption is satisfied by local manufacturers.

In East Africa the largest furniture consumer is Ethiopia, followed by Kenya, Tanzania and Uganda. The fastest growing markets in the region are Ethiopia and Uganda.

Southern Africa is the second largest furniture market. Local manufacturers satisfy 50% of the market. South Africa is ranking first as furniture consumer, followed by Angola, where prospects for growth are particularly favourable.

In Africa, the demand for furniture is much higher in the urban than in rural areas because there are more offices, modern accommodation, hotels and schools in the cities and these are the biggest buyers and users of furniture.

As a result, of sustained migration from the rural areas, more than 40 percent of Africa’s one billion people now live in urban areas (cities and towns).

At the current rate of growth, more than 500 million Africans will live in cities by 2030. As the population of Africa’s cities and towns increases, this will naturally increase the demand for real estate; residential accommodation, office space, hotels and schools.

At the moment, just a little over 50 African cities have a population equal to or more than one million people. At the current rate of migration, the number of cities in Africa with over one million people is expected to reach 65 by the year 2030.

Because more people are flocking to cities and towns in search of jobs and a better life, they are helping to increase the demand for accommodation.

Don’t forget, when the demand for accommodation rises, the demand for furniture is never far behind. 

Rising Income Levels

While the global economy is predicted to grow by 2 to 3 percent between 2011 and 2020, Africa is expected to grow by nearly 6 percent, making it one of the world’s fastest-growing regions.

The level of development going on in many African cities and towns are increasing day-by-day and this development includes construction of buildings such as; schools, campuses, complexes, residential estates, hotels, guest houses etc. With the increasing number in population, the demand for all kinds of accommodation is increasing daily.  And this fact has caused a huge growth in the real estate investment.

Statistics shows that about 40% of the African population has migrated from the rural area (villages) down to the urban area (cities). It has also been predicted that about 500 million Africans will live in cities by the year 2030. Judging by the statistics stated above, there will be an increase in the demand for modern accommodation such as real estate and residential buildings as well as business offices, schools, hospitals, hotels etc.

This positive trend will usher nearly 300 million Africans into the middle class and will lead to huge spending on real estate and construction for housing and office accommodation.

As more people flood into cities and towns in search of greener pastures, the number of African cities with over a million populations is expected to raise from 50 to 65 by the year 2030. Africa is expected to witness a high increase in the demand for accommodation and as this tends to occur, the rate in the demand for furniture will definitely increase.

Africans in this economic ‘middle class’ are usually urban dwellers who hold salaried jobs or own and operate a small business. Many of them are young, educated, and more aware of modern consumer tastes and trends in furniture and interior decoration.

This segment of consumers are willing to spend more on furniture and fittings that suit their higher tastes.

Favourable Government Policies

For many years, imported furniture from North America and Europe dominated African markets and made it very difficult for local furniture businesses to thrive. This is still the case in many countries on the continent.

However, in countries like Nigeria,, imported furniture has been banned since 2004. This has allowed several local furniture companies to grow and become very successful. A classic example of such a success is the Sokoa Chair Centre, a partnership between a major French furniture maker and a local Nigerian company.

In Kenya, the Public Procurement Oversight Authority (PPOA) has released regulations that restrict government offices and public entities from buying imported furniture. All government spending on furniture will now go to local Kenyan furniture businesses.

This is huge because the government is arguably the biggest spender in Kenya and local furniture businesses will get a huge boost  from this initiative.

Banning imported furniture is a good way for African governments to develop and support local furniture businesses. As more countries on the continent impose bans on imported furniture, smart entrepreneurs can seize such opportunities to tap into a very lucrative market.

However, some consumers (like hotels, offices and rich people) prefer foreign furniture for reasons of brand appeal or because they ‘perceive’ the locally produced items as poor quality. Some other people cannot afford imported furniture because they can be very expensive.

The bottom line is that the projected sure shot increase in the demand for residential and commercial accommodation is the engine to accelerate the growth of furniture industry in Africa. It’s the perfect time to get into the furniture business in Africa!

Africa Furniture Importers Directory

The AFRICA FURNITURE DIRECTORY is a perfect starting point for international exporters, manufacturers, traders and merchants of furniture equipment looking to establish direct contacts with their business counterparts in the lucrative African market. The directory lists furniture dealers in Africa, importers of furniture equipment in Africa. 

This database of FURNITURE FIRMS IN AFRICA will help you reach your target audience in Africa by helping you build direct B2B contacts with importers in Africa dealing in your products. 

There is a great demand for furniture equipment among importers in the African market. This database will help you reach potential buyers in Africa and expand your market share in the new and emerging markets in Africa.