Get the latest market trends in your inbox

Stay on top of the latest market trends and economic insights with the Axios Markets newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sub-Saharan Africa's rising population and economies have led to a growing middle class and, in turn, more spending power which provides "a vast source of potential for prosperity," per experts at the African Development Bank.

The big picture: Since 2000, the wealth of sub-Saharan African nations has been growing much faster than the global average and than that of the more prosperous Northern African nations. And in the next five years, analysts at the International Monetary Fund expect the region's GDP to expand even faster.

Expand chart
Data: IMF World Economic Outlook Database; Chart: Andrew Witherspoon / Axios

Key numbers:

  • Africa's population has grown to 1 billion since 2010, and the continent's middle class has grown to 350 million, according to an African Development Bank estimate.
  • Private consumption has risen an average of 3.7% year-to-year since 2010, and that growth is expected to hold in 2018. It has been the most significant factor in the GDP growth of sub-Saharan Africa since the beginning of the century.
  • Consumer spending accounts for 50–60% of the growth of Africa's economy, with the second more impactful factor being investment in infrastructure.
  • As the population keeps growing, consumer spending is projected to rise from $680 billion in 2008 to $2.2 trillion by 2030.

Yes, but: The middle class is driving growth, but 645 million Africans still live without access to electricity and the lack of infrastructure has the potential to slow growth. Still, governments are ramping up spending on infrastructure, the African Development Bank notes. Per their analysis, public spending on infrastructure grew by 3% of GDP in 2014, and that growth is expected to stay constant for the next five years.

Go deeper

Cold December as safety nets expire

Illustration: Sarah Grillo/Axios

Safety nets are likely to be yanked from underneath millions of vulnerable Americans in December, as the coronavirus surges.

Why it matters: Those most at risk are depending on one or more relief programs that are set to expire, right as the economic recovery becomes more fragile than it's been in months.

15 hours ago - Health

Food banks feel the strain without holiday volunteers

People wait in line at Food Bank Community Kitchen on Nov. 25 in New York City. Photo: Michael Loccisano/Getty Images for Food Bank For New York City

America's food banks are sounding the alarm during this unprecedented holiday season.

The big picture: Soup kitchens and charities, usually brimming with holiday volunteers, are getting far less help.

17 hours ago - Health

AstraZeneca CEO: "We need to do an additional study" on COVID vaccine

Photo: Pavlo Gonchar/SOPA Images/LightRocket via Getty Images

AstraZeneca CEO Pascal Soriot said on Thursday the company is likely to start a new global trial to measure how effective its coronavirus vaccine is, Bloomberg reports.

Why it matters: Following Phase 3 trials, Oxford and AstraZeneca said their vaccine was 90% effective in people who got a half dose followed by a full dose, and 62% effective in people who got two full doses.

Get Axios AM in your inbox

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!