Despite misconceptions of Africa’s luxury market and African consumers’ beliefs of becoming a regular consumer, the continent’s expanding middle class is contributing to the market’s success and changing one-sided poverty narratives.

What This Means for Africa

Luxury good consumption among Africans is increasing. Many can afford these items largely in part to the disposable income some now possess. According to the same African Business Magazine report, in 2012 the number of higher-net-worth individuals grew by 9.9 percent, making it the second-highest wealth class growth rate in the world.

U.S. brands like Hugo Boss, Italian fashion label Prada, Mercedes-Benz and Cartier — which is known for its high-end watches — have already made their products readily available for consumers in Africa. South Africa has aided in this increase.

The country used to only hold 10 percent of the world’s luxury consumption but has since surpassed that. Africa continues to capture the eye of many luxury retailers as its economies have had much growth in recent years. Luxury markets aren’t quite yet the primary source of income for many countries. Instead, natural resources like oil and gas heavily contribute to Africa’s economies and the swelling wealth class.

Foreign investors would actually benefit from investing in real estate for several reasons. Some of those benefits are variety of locations, low cost of living and inexpensive high- quality labor and materials which are available.

Still Roberts believes there’s work to be done — and challenges may outweigh the literal and figurative start-up costs:

“Poverty remains widespread, infrastructure is weak, retail markets are undeveloped and brand awareness is lacking, she said. “To succeed, brands have to overcome the challenges of the different African markets through careful research of suppliers, using local partners, understanding consumers and the business environment.”