Spare Cash Is Hard to Come by for Most in Nigeria, Kenya and Ghana

Spare Cash Is Hard to Come by for Most in Nigeria, Kenya and Ghana

In the third quarter, consumer confidence increased five index points in both Kenya (117) and Ghana (99), while it decreased five points in Nigeria (127).

“The confidence score in Nigeria, while still overwhelmingly positive, is likely a reflection of the more recent ‘moderate economic outlook’ driven by currency devaluation, rising oil prices, food inflation and dwindling disposable consumer income,” said Allen Burch. “This has led to re-prioritization of where consumers spend money, with a greater focus on staple foods and basic necessities and saving leftover Naira for a rainy day. In Kenya, the increase in confidence is no surprise, as the timing of U.S. President Obama’s visit likely left people feeling very positive about the future. Business sentiment as measured in Nielsen’s Africa Prospects indicator also shows Kenya as the top country for business growth.” 

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 this report. As such, these three sub-Saharan African markets are not included in the global or Middle East/Africa averages discussed throughout this report.

Optimistic attitudes were seen in the outlook for jobs, which increased in Ghana and Kenya, rising three and two percentage points, respectively, from the second quarter. Likewise, sentiment for personal finances and immediate spending intentions also increased in both countries. Seventy percent of Kenya respondents and 67% of Ghana respondents believed the state of their personal finances were good or excellent, up three and four percentage points, respectively. Conversely, sentiment for all three indicators declined in Nigeria, with immediate spending intentions declining eight percentage points to 48% in the third quarter.

The majority of respondents in the three countries said they did not have spare cash (68% in Ghana, 63% in Kenya and 60% in Nigeria), levels that decreased in Ghana and Kenya but increased in Nigeria from the second quarter. Among those who did claim discretionary funds, saving continued to be a priority for the majority: 77% in Ghana, 87% in Kenya and 80% 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.

Other findings include:

  • Morocco was added to the Global Survey this quarter, and the country’s index is reflected in the Middle East/Africa regional average.
  • Global consumer confidence rose three percentage points in the third-quarter, to an index score of 99.
  • Global immediate spending intentions have risen 13 percentage points since 2008 to a high of 43% in the third quarter of 2015.
  • Taiwan showed the biggest quarterly decline of 12 points from the second quarter, while South Korea reported the lowest score of 49 in the third-quarter.

For more detail and insight, download Nielsen’s Q3 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 Aug. 10-Sept. 4, 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.