Saving is a High Priority in Nigeria, Kenya and Ghana

Saving is a High Priority in Nigeria, Kenya and Ghana

Consumer confidence continues to rise in Nigeria, Kenya and Ghana, the three sub-Saharan African countries in Nielsen’s fourth-quarter 2014 Consumer Confidence Survey. Nigeria reported the highest score of the three countries, increasing four index points to a score of 127. Confidence also increased eight points in Kenya (113) and five points in Ghana (102) from the third quarter of 2014.

The majority of respondents in the three countries did not have spare cash (70% in Ghana, 61% in Nigeria and 59% in Kenya), a level that decreased in Kenya and Nigeria from the third quarter, but increased eight percentage points in Ghana. Among those who did have discretionary funds, saving was a priority for 89% in Kenya, 86% in Nigeria, and 85% in Ghana, followed by spending on home improvement projects (73% in Kenya, 73% in Nigeria and 71% in Ghana).

While spare cash is low for many, the job outlook in Kenya and Nigeria is improving, with a 12-percentage point jump in Kenya (62%) and a six-percentage point rise in Nigeria (64%) from the previous quarter. Job prospects remained flat in Ghana (42%), compared to third-quarter 2014. Though 82% of Nigerian respondents were confident that their personal finances were in good order, just over half (56%) believed now was a good time to spend. In Kenya, 69% of respondents believed money matters were good or excellent, and 41% were confident in their current spending capacity—an increase of five percentage points from the third quarter. Likewise, 66% of respondents in Ghana were optimistic about their finances, and 36% were confident about spending.

The three countries were added to Nielsen’s measurement of consumer confidence in the first quarter of 2014 using a mobile survey methodology, which differs from the online methodology used to report consumer confidence and spending intentions in 60 other countries measured.

Other findings include:

  • Global recessionary sentiment improves slightly, fueled by key markets.
  • U.S. consumer confidence showed robust year-over-year improvement.
  • Clouds of pessimism returned to the eurozone.

For more detail and insight, download Nielsen’s Q4 2014 Global Consumer Confidence Report.

For a historical look at global consumer confidence by region, country and time period, explore the Nielsen Global Consumer Confidence Trend Tracker.

About the Nielsen Global Survey

The Nielsen Global Survey of Consumer Confidence and Spending Intentions was conducted Nov. 10-28, 2014 and polled more than 30,000 online consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East/Africa and North America. The sample has quotas based on age and sex for each country based on its Internet users and is weighted to be representative of Internet consumers. It has a margin of error of ±0.6%. This Nielsen survey is based only on the behavior of respondents with online access. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60% Internet penetration or an online population of 10 million for survey inclusion. The China Consumer Confidence Index is compiled from a separate mixed methodology survey among 3,500 respondents in China. The sub-Saharan African countries in this study are compiled from a separate mobile methodology survey among 1,600 respondents in Ghana, Kenya and Nigeria. The Nielsen Global Survey, which includes the Global Consumer Confidence Index, was established in 2005.