- Ghanaian Consumer Confidence Shoots Up by 10 Points
Ghana’s latest Consumer Confidence Index (CCI) for the second quarter of 2019 shows an extremely healthy increase of 10 points to 118, while Nigeria’s CCI has increased by one point to 127. These two sets of results present an optimistic picture of consumer sentiment across West Africa.
Looking at Ghana’s overall performance, Nielsen Market Lead for West Africa, Yannick Nkembe comments; “Ghana is currently the poster child for African economic growth and positive consumer sentiment. The International Monetary Fund estimates its GDP will rise 8.8% this year – double the pace of emerging economies as a whole, and well ahead of world growth.
“This is a result of factors such as expanding crude oil production, a stable democracy and the introduction of a more favourable taxation structure. Ghana’s manufacturing industry has also been boosted by policies aimed at diversifying the economy and preventing an over-reliance on the commodity markets.”
This overall positive outlook is reflected by Ghanaian consumers’ greatly improved view of their job prospects, with a 10 point increase to 63%, saying they will be excellent or good in the next six months. In terms of the state of their personal finances over the next 12 months, 74% say excellent or good up from 70% and the number of Ghanaian consumers who feel now is a good or excellent time to purchase has also seen a large increase quarter on quarter, from 34% to 46%.
Looking at whether Ghanaians have spare cash, 52% say yes, up nine points from the previous quarter. Once they meet their essential living expenses, the highest number of consumers (82%) put their spare cash into savings, followed by 72% on home improvements/decorating and 67% who invest in stocks and mutual funds.
When looking at the real life factors that are having a negative impact on Ghanaians outlook, the top concerns over the next six months include work/life balance at 24%; the same figure as the last quarter, rising food prices at 22% (dropped by three points compared to Q1’19) and tolerance towards different religions, also at 22% (increased by 1% since the previous quarter), and children’s education and welfare at 18% which has seen a 2 point increase.
