By now,<\/strong>\u00a0most investors and businesses know about the tremendous potential of Africa\u2014the world\u2019s second-fastest-growing region, topped only by emerging Asia. But it may come as a surprise that Africa\u2019s growth is fueled not by resources but rather by a rising consumer market.<\/p>\n The continent\u2019s consumer-facing industries are expected to grow by $400 billion, representing its single-largest business opportunity, by 2020. But many companies don\u2019t know how to translate this potential into action, because of a dearth of market research. That, however, is changing. In one of the first studies of its kind, McKinsey\u2019s Africa Consumer Insights Center surveyed 13,000 consumers in ten African countries, with a focus on the largest cities. Five categories of consumption were covered: apparel, financial services, groceries, the Internet, and telecommunications.<\/p>\n Several factors are shaping this new consuming class. Africa\u2019s population, the fastest growing and youngest in the world, is concentrated in urban areas. This new class of consumer has a smaller family, is better educated and higher earning, and is digitally savvy. Africans are exceptionally optimistic about their economic future: 84 percent say they will be better off in two years.<\/p>\n These new African consumers resemble their urban counterparts anywhere in the world: they are both brand and quality conscious, seek out the latest trends but watch the budget, and want a modern and attractive shopping environment.<\/p>\n But Africa is a complex, nuanced market of 53 countries and more than 2,000 dialects. Consumers in the north have preferences and needs very different from those in the sub-Saharan countries. The McKinsey study attempts to provide companies, whether new to the continent or expanding an existing footprint, with the insights they need to formulate a winning business model to reach this new consuming class. Here are some highlights from the research.<\/p>\n