Consumer spending remains bleak in East Africa
It will not be your usual merry making nor too much pomp and colour for millions of shoppers as spending is tipped to dip according to a new consumer survey. In Kenya’s 2022 December Holiday Retail Survey2022, it shows a rather tight squeeze for consumers as the festive season fast kicks in with disposable incomes fast shrinking. CNBC Africa spoke to Victor Otieno for more.
Wed, 07 Dec 2022 10:26:52 GMT
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AI Generated Summary
- Consumer survey indicates a significant squeeze on disposable incomes in East Africa ahead of the festive season.
- Market analyst Victor Otieno highlights challenges such as rising costs, drought conditions, and limited government support for key sectors.
- Advice for consumers focuses on exercising caution, prioritizing financial prudence, and navigating economic uncertainties.
Consumer spending in East Africa is expected to take a hit as the festive season approaches, according to a recent consumer survey conducted as part of Kenya's 2022 December Holiday Retail Survey. The survey reveals a significant squeeze on consumers' disposable incomes, signaling a bleak outlook for the upcoming holiday period. Victor Otieno, a market analyst, shared insights on the current economic landscape in East Africa and its potential impact on consumer behavior. Otieno pointed out the challenges posed by factors such as rising costs, drought conditions, and limited government support for key sectors like agriculture. As a result, many consumers are expected to tighten their belts and cut back on holiday spending. While liquidity remains a key concern during the festive season, Otieno advises consumers to exercise caution and prioritize financial prudence, especially with the new school year approaching in January. The economic initiatives underway, such as subsidies and the Hassler fund, are aimed at revitalizing the economy in the region and could pave the way for a more stable economic outlook in 2022. As consumers navigate these uncertain times, financial planning and responsible spending are crucial to weathering the economic challenges ahead.
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