Social media now rivals traditional word-of-mouth as top purchase driver, and is shaping African consumers’ buying decisions.
This is according to the Boston Consulting Group’s (BCG’s) “119 million reasons for optimism: How young consumers are reshaping Africa’s retail future” consumer sentiment survey.
The survey report details why the continent’s 119 million Gen Z consumers (aged 18 to 27) are poised to become the primary growth engine for African retail over the next decade.
The report is based on a survey of 6 000 urban consumers across Egypt, Morocco, Ethiopia, Nigeria, SA and Kenya.
According to the report, despite the toughest consumer climate in years, Africa’s Gen Zs are powering a retail reset that blends digital discovery with physical retail and redefining what it means to be a connected consumer in the digital economy.
It notes that roughly 30% of surveyed consumers say social media influences what they buy, almost on par with word-of-mouth (37%) and ahead of online search (28%), andbrand marketing e-mails (8%), while only 7% opted for magazines, blogs and editorials.
In Sub-Saharan African markets such as Kenya, Nigeria, Ethiopia and SA, social media consistently ranks among the top two influence channels.
While traditional word-of-mouth happens in small circles between family, friends and colleagues, social media expands that circle to millions. A single recommendation, review, or TikTok video can influence far more people than one-on-one conversations could, it says.
Platforms like TikTok, Instagram and Facebook have become product discovery engines, while influencers and content creators essentially act as scaled-up word-of-mouth voices that shape buying decisions, as their content feels either personal or relatable, it adds.
“Retailers and consumer brands should treat platforms like WhatsApp, TikTok and Instagram as direct commerce channels, where storytelling, persuasion and purchase happen simultaneously,” says Thomas Jensen, MD and senior partner in BCG’s Nairobi office.
“The 18 to 27 age group will remain the continent’s most powerful consumer base. Brands don’t need to redesign products for them, but must embed themselves in Gen Z’s world, through the platforms, formats and messages that shape their daily lives, to build loyalty early and grow with them over time.”
Rise of hybrid retail
The report further notes that rather than being replaced, traditional retail is becoming Africa’s competitive strength. As digital adoption accelerates, the continent is not shifting away from traditional retail but blending it with online and mobile channels.
The result could be a hyper-local, mobile-enabled retail system, where discovery and purchase increasingly happen online through social commerce, while fulfilment and trust remain rooted in brick-and-mortar stores.
Gen Z is at the forefront of this change, but this phenomenon goes beyond the youth, notes the report.
Today, the majority of connected African consumers browse for products online through search engines, retailer websites, or social media platforms. Online influence on purchasing decisions is set to deepen, particularly in high-value, long-cycle categories such as travel, insurance and electronics, it says.
“The rise of hybrid retail is redefining direct-to-consumer distribution. Physical stores are increasingly being used for peer-to-peer delivery, while parcel lockers are enabling e-commerce in markets such as SA. These developments indicate that low-cost, alternative distribution models could play an important role in shaping the next phase of Africa’s retail evolution.
“Africa’s consumers move fluidly between online discovery and offline purchase. Success will depend on integrating both, connecting digital influence with trusted, local fulfilment.”
Mobile money momentum
Increasing smartphone penetration in Sub-Saharan Africa (projected to reach 87% by 2030) has also fuelled a remarkable rise in financial inclusion. Today, about 60% of adults in the region hold a financial account, up from roughly 192 million people in 2014, to around 444 million in 2024, the report continues.
The driving force is the rapid adoption of mobile money. Mobile money has become a cornerstone of financial access, with 40% of Sub-Saharan African adults now owning a mobile money account.
Unlike traditional banks, mobile money doesn’t require a formal account, branch access, or credit history. It operates through SIM-based wallets linked to a phone number, allowing users to send, receive and store money via basic mobile networks. This model has been transformative in Africa, where limited banking infrastructure and high informality made access to conventional financial services difficult.
“With smartphone penetration projected to grow significantly, the foundations for inclusive, scalable commerce are being laid. The rapid adoption of mobile money and fintech solutions means young Africans are not only more likely to interact with brands digitally but are also leading the way in credit adoption.
“Nearly 42% of Gen Z Africans own a credit card, on par with millennials, making them the fastest-growing segment in new credit originations. This points to a generation finding financial agency to support both aspiration and inclusion.”
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