Why Is The Furniture Business Booming In Africa?

Why Is The Furniture Business Booming In Africa?
The furniture business is not just booming in Nigeria and Uganda;
it’s booming across Africa. As is my usual practice on
smallstarter.com, let’s look at four strong factors responsible for
the huge growth in the furniture business on our continent. Here
they are…
#1 - Africa’s Real Estate Boom Is Rubbing Off On The Furniture
Business.
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. I guess you see the connection here; higher demand for
home and office accommodation is leading to a high demand for
furniture pieces!
Nobody builds, buys or rents an apartment in order to live in an
empty space. What is a home or office without furniture? It’s too
difficult to imagine! Just remember this simple rule: Wherever the
real estate business grows, the furniture business grows, and vice
versa. Wherever people are looking for accommodation, they will
soon be looking for furniture too!
#2 – The Growth Of Africa’s Cities Favours The Furniture
Business
Cities and other urban areas are the major source of demand
for furniture products around the world. The demand for
furniture is much higher in the urban than in rural areas. How
come? 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. (photo credit: awaka.ug)
#3 - Fast Growing Economies And 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.
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. Of course,
whenever and wherever there is an investment in a real estate
or construction project, there is always an opportunity for
furniture businesses.
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.
#4 – Favourable Government Policies In Some African Countries
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.