The New Kings of African Commerce: Why Gen Z Now Dominates Spending

In a continent long characterised by youthful demographics, the numbers are finally aligning with market power. According to new projections by the World Data Lab, Africa’s Generation Z (those born between 1997 and 2012) will account for US$801 billion in consumer spending in 2025, making them the largest spending cohort on the continent. This figure is expected to surpass US$1 trillion by 2032, a milestone that reflects more than economic growth. It signals a broader global transition in consumption patterns, from the traditional “Global West” to emerging regions.

By 2030, Gen Z will become the first generation in modern history whose global spending power is no longer concentrated in the Global West (defined as North America, Europe, and a few advanced economies). The pivot to emerging markets will be led by Africa. This shift will not be driven by political elites or industrial giants, but by 460 million Gen Z Africans transforming consumption through cities, smartphones, and rising aspirations.

The Consumer is Young

In 2025, Gen Z is projected to outspend every other generation in Africa. In a consumer economy still largely focused on essentials, this group already leads in sectors such as food, housing, and transport. On average, an African Gen Z individual will spend US$1,277 next year. The breakdown of this spending illustrates priorities shaped by both economic realities and modern lifestyles:

• Food: 39.3% (US$502)
• Housing: 14.9% (US$190)
• Transport: 9.6% (US$122.5)
• Clothing: 6.3% (US$80.7)
• Furnishings: 5% (US$63.4)
• Miscellaneous: 4.6% (US$58.1)
• Education: 4% (US$50.5)
• Restaurants: 3.9% (US$50.4)
• Communications: 3.4% (US$44)
• Alcohol: 3.3% (US$42.6)
• Health: 3.3% (US$41.8)
• Recreation: 2.4% (US$30.4)

This spending profile is unlikely to remain fixed. Gen Z is also the most digitally connected, globally aware, and entrepreneurially driven generation Africa has witnessed. While older cohorts focused spending on survival, Gen Z is now spending on mobility, self-expression, and experience. These values are set to reshape the nature of consumption across the continent.

Kenya: A Case Study in Youth Economics

Kenya is a standout example in both demographic weight and economic activity. It ranks as the fifth-largest Gen Z consumer economy in Africa, trailing only Nigeria, Egypt, South Africa, and Ethiopia. By 2025, 17 million Kenyan Gen Zs will be responsible for US$34 billion (KES 4.4 trillion) in spending.

Much of this economic power is urban. Nairobi alone will generate US$10.1 billion in Gen Z spending—almost one-third of the national total. Other key cities include Mombasa (US$1.1 billion) and Kisumu (US$533 million). However, it is not just the volume of spending that matters. Cities such as Meru (+10.1%), Thika (+8.1%), and Ruiru (+7.9%) are expected to experience the fastest Gen Z spending growth rates through 2035. These emerging urban centres will likely become key markets and innovation zones over the next decade.

This geographic data highlights a critical insight. Gen Z’s economic impact is not uniformly distributed. It is concentrated in urban areas with infrastructure, jobs, and digital access. These regions are where businesses and policymakers should focus their attention.

Alpha Rising, But Gen Z Holds the Purse

Generation Alpha (born after 2012) will surpass Gen Z in population size by 2025. However, Gen Z will remain the dominant consumer generation until at least 2040. Their current economic lead is substantial, and they benefit from better access to employment, digital tools, and educational pathways.

By 2040, Gen Z will have transitioned from youth to middle age. As they enter new life stages – purchasing homes, raising families, seeking healthcare – they will carry forward their consumption habits and expectations. This will create new pressure points for service delivery, infrastructure, and policy design.

Implications: A New Consumer Geography

Three patterns emerge clearly from the report:

1. Gen Z is now the top spending generation in Africa, both in population size and total expenditure.
2. Urban centres dominate spending today, but the fastest growth is taking place in smaller, rapidly developing cities.
3. Kenya offers a clear lens into this transformation, with Nairobi leading in total spending and cities like Meru and Thika setting the pace for growth.

The broader implication is that Africa’s consumer transformation is being driven from the bottom up. This is not a story about elites or export-led growth. It is a demographic dividend finally materialising through daily transactions, youthful ambition, and the embrace of a digital-first economy.

In the coming years, how governments, businesses, and civil society respond to Gen Z’s economic rise may determine whether Africa’s future is one of inclusion and opportunity – or inequality and exclusion.

The consumer is no longer merely young. The consumer is Generation Z.