Importance of Africa’s middle class in the hospitality industry
WeekendLife
The African Development Bank (AFDB) defines the “middle class” as a group of people that spends between $2 and $20 a day. This class is mushrooming globally, and its cumulative expenditure is a major contribution to the hospitality industry among other sectors.
According to the Institute for Security Studies European Union (EUISS), ESPASa, 2011, as quoted by Integreon Insight “The middle class will increase in influence as its ranks swell to 3.2 billion by 2020 and to 4.9 billion by 2030. The middle class will be the protagonist of the universal spread of information societies. Over the coming 20 years, the world will likely evolve from being predominantly poor to mostly middle class, though the change will be geographically uneven”.
There lacks clear definition of the exact number of middle class in Africa, with some sources quoting more than 300 million and others approximately 18 million. Yet, AFDB estimates by 2060, there will be approximately 1.1 billion middle class Africans, making the continent one of the biggest beneficiaries of its budding middle class. This has been contributed by a vigorous private sector, infrastructural development, income parity across the employment divide as well as a bigger focus on education among Africans.
Besides, a McKinsey Global Institute analysis presented by Infinite Potentials Consulting, projects that by 2025, Africa’s household consumer spending will reach US$2.1T, representing an increase of 45% from 2015. This presents promising business opportunities in a wide range of consumer-facing industries including hospitality.
In one of my previous articles on Examining the State of Hotel Development in Africa, a rising middle class especially concentrated in urban areas is a contributor to the expansion of hotels in the continent. It is estimated that by 2030, Africa’s top 18 cities are likely to have combined spending power of $1.3 trillion. This will prompt more Africans to travel, internationally and domestically.
Cyrus Onyiego, the country manager of Jumia Travel Kenya, notes that due to its growing disposable income, the middle class is increasingly demanding for personalized services. “This pushes service providers in the hospitality industry to provide customer facing solutions at all touch points”.
Furthermore, the embracement of technology among the middle class is seen to develop its skills in the labor force. This in turn acts as an attractive feature for more Foreign Direct Investment (FDI) in Africa, as investors seek to capitalize on an energetic and innovative lot in the hospitality industry, both in terms of manpower and expenditure.
While the impact of the rising middle class in Africa’s hospitality industry is almost surely felt, some stakeholders in the sector have a lot of catching up to do; in matching up to the class’ ever changing trends and requirements. For instance, embracing tech in their operations, hoteliers can easily create a distinguished experience for their customers.
In its 2016 report on Creating the Coveted Hotel Guest Experience, Oracle Hospitality emphasizes the impact technology, if well invested in and creatively used, can help hoteliers to uniquely engage each guest. The report further states that from providing improved booking with customized options, to faster check in/check out and mobile access to hotel services, technology contributes to customized attention and exceptional service that guests (largely comprised of the middle class), weary of mass commercialization, crave more than ever.
WeekendLife
Creatives taking over 2023
Creativity is seen everywhere and these individuals did something recently that’s never been done before, and some are still killing it. We see creativity on streaming platforms, stages, runways, social media and boardrooms even. Some of them are revamping their businesses, and lately, clothing sale is thriving.
They love concept-driven designs, storytelling and they bring fresh ideas and new perspectives that will leave footprints in the sand. Post the COVID-19 pandemic, these creative minds utilized the drawing board and they became cognizant that monetizing content will actually take them far, which is frank nonetheless.
This is commendable though, but the creative industry will still need support from government in order for it to flourish further. Allocation of resources (funds, facilities and empowerment) should be done consistently, creativity must be raised and at the end of the day, the economy benefits from that kind of investment.
HAN C
Ever since he parted ways with his former manager, DJ Bougee Sid, Mahalapye born-pint sized, multi-award-winning artist, Hanceford Magapatona has been taking up space, unapologetically so. Han C has shown a strong will to take over the entire world, and he is in the right direction. He’s solely organizing the annual Mahalapye Spring Festival, which is taking place next weekend.
The Pepetetsa hitmaker raked some monies from his savings to put together this event. Mahalapye Spring Festival will feature Paige, Ubuntu Band, Khoisan, Amantle Brown and Double Up among others. Even though it didn’t come as a surprise, Han C was nominated at African Muzik Magazine Awards (AFRIMMA) in the US, under Best Male Southern Africa category.
However, the award was snatched by the late South African rapper, AKA. Its not all lost as Han C secured two nominations at the Yarona FM Music Awards (YAMAs): People’s Choice of the Year and Best Male Single.
KOKETSO MOTSWAGOLE
This entrepreneur has turned his dreams into reality, and his promising apparel business is now a fashion destination. Matter of fact, Motswagole weathered the storms to be where he is now because through criticism and social media bullying, he still leads the pack in fashion.
His social media accounts got deleted but through his online store, KM Sales, Motswagole is able to rake in some profits. He initially started selling from his car but now owns a busy store and has employed a number of young people.
KM Sales has been offering fashionable items (shoes, t-shirts, pants) and has been participating in various lifestyle events such as Garden of Drip where it showcases its products.
If there is one young entrepreneur to draw motivation from is Koketso. The business started from humble beginnings, at the time when he worked part time at Ipelegeng as a casual labor. Indeed, good things come to those who wait, or well, work like a slave today, live like a king tomorrow.
KAGISO LUDO DE KLERK
Vee Mampeezy’s ex-wife Kagiso De Klerk clearly did not sit and weep over their dramatic divorce. The famous social media influencer hurriedly picked up the pieces and went hard on promoting business online. She literally took social media influencing to the head and it is working for her.
This year saw her partnership with Shell reach greater heights, and obviously, she is raking lot of pulas from the deal. Kagiso has been making frequent appearances in top events in South Africa such as Bubbles in Spring and Gold and Diamond Experience.
GAONA DINTWE
After a long break from the limelight, renowned media and radio personality, Gaona Dintwe is back. She was missed by many on TV, and she’s back where she belongs, news anchoring on BTV. Gaona has also found a niche in podcasting. She is a host of her own podcast, Gaona Live Conversation, where various people share their stories on camera.
Some of what they discuss is Gender Based Violence (GBV), polygamy and drug addiction. This is highly commendable because even BTV doesn’t have programs that discuss these crucial social issues. The Lentswelemoruti native is also seen in various corporate events where she is engaged as a host.
WeekendLife
DITIRO LEERO ONE MAN SHOW ON THE PIPELINE
Now that one-man shows are made fashionable, traditional dance guru and ex-convict, Ditiro Leero is joining the crusade and he will be hosting his also. The show will be held next month at Zone 4 Farm in Selokolela, but the there are traditional dance music artists who have been lined up to perform at the show. Matshana, Morwa Leka and Maswailathota will be doing their thing and probably bring some heat too. Ditiro Leero will be making history as the first traditional artist to host a one-man show in Botswana.
WeekendLife
MISS BOTSWANA HAVING MANY IRONS IN THE FIRE
With only two months before Miss World 2023, the reigning Miss Botswana, Lesego Chombo is having many irons in the fire, preparing for the much-anticipated beauty pageant. Miss World 2023 will be the 71st edition of Miss World pageant and it will be held in India. Chombo has been spotted toning her body at Jack’s gym, a requirement that is taken seriously at the pageant. She has also been participating in charity events, something that should add to her profile at the Miss World.