Consumers in Kenya, Ghana and Nigeria Confident Despite Spare Cash Scarcity

Consumers in Kenya, Ghana and Nigeria Confident Despite Spare Cash Scarcity

At the end of 2015, consumer confidence remained relatively stable in Nigeria (127), Ghana (104) and Kenya (103), compared to the start of the year. Specifically, scores represented a confidence increase of five index points in Ghana and decreases of two points in Nigeria and one point in Kenya from the first quarter of 2015.

The fourth-quarter outlook for jobs was high in Nigeria, as nearly three-quarters of respondents (73%) believed prospects would be good or excellent in the next year. Job sentiment was notably lower in Kenya (45%) and Ghana (42%). Likewise, the sentiment about personal finances and immediate spending intentions were also highest in Nigeria. Eighty-two percent of Nigerian respondents believed the state of their personal finances was good or excellent, followed by Ghana (71%) and Kenya (58%), and 50% of Nigerian respondents said now is a good time to spend, followed by Ghana (40%) and Kenya (34%).

The majority of consumers in Ghana, Kenya and Nigeria are within the poverty sector. As such, a majority of respondents said they did not have spare cash (67% in Ghana, 66% in Kenya and 60% in Nigeria). Among those who did claim discretionary funds, saving continued to be a priority for the majority: 82% in Kenya, 79% in Ghana and 78% in Nigeria plan to put money into savings accounts. Discretionary spending intentions for home improvement projects were the second-biggest priority among respondents in all three countries.

Kenya, Ghana and Nigeria were added to Nielsen’s measurement of consumer confidence in the first quarter of 2014 using a mobile survey methodology, which differs from the online methodology used to report consumer confidence and spending intentions for the other 61 countries outlined in Nielsen’s Consumer Confidence report. As such, these three sub-Saharan African markets are not included in the global or Middle East/Africa averages discussed throughout this report.

Other findings include:

  • Global consumer confidence declined two points from the third quarter to 97 – the same score as the start of the year.
  • Cutting back on out-of-home entertainment was one of the top three savings strategies in every region in Q4, with the highest level reported in Latin America (53%).
  • Fears about terrorism escalated to new highs in North America and Europe.
  • Consumer Confidence in the third quarter increased in 26 of 61 markets measured by Nielsen (43% of measured markets).

For more detail and insight, download Nielsen’s fourth-quarter 2015 Global Consumer Confidence Report.

For a historical look at global consumer confidence by region, country and time period, explore the Nielsen Global Consumer Confidence Trend Tracker.

About the Nielsen Global Survey

The Nielsen Global Survey of Consumer Confidence and Spending Intentions was conducted Nov. 2–25, 2015 and polled more than 30,000 online consumers in 61 countries throughout Asia-Pacific, Europe, Latin America, the Middle East/Africa and North America. The sample includes Internet users who agreed to participate in this survey and has quotas based on age and sex for each country. It is weighted to be representative of Internet consumers by country. Because the sample is based on those who agreed to participate, no estimates of theoretical sampling error can be calculated. However, a probability sample of equivalent size would have a margin of error of ±0.6% at the global level. This Nielsen survey is based only on the behavior of respondents with online access. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60% Internet penetration or an online population of 10 million for survey inclusion. The China Consumer Confidence Index is compiled from a separate mixed methodology survey among 3,500 respondents in China. The sub-Saharan African countries in this study are compiled from a separate mobile methodology survey among 1,600 respondents in Ghana, Kenya and Nigeria. The Nielsen Global Survey, which includes the Global Consumer Confidence Index, was established in 2005.