2014-07-AFRICONSUMPTION

8/11/2019 2014-07-AFRICONSUMPTION

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AFRICONSUMPTIONPan-African consumerism for the 21st century.

AFRICA TREND BULLETIN

JULY 2014



If you think China is

Africa’s most exciting

business partner today,

then you’re wrong.

Of course, the explosion of interest in Africa from foreign

brands is undeniable.

But Africa’s economic boom is also seeing a new wave

of African brands willing and able to reach out to – and

fulfil the needs of – other African consumers. Not just in

the brand’s home nation, but across the continent.

The most exciting story of cross-border consumerism in

Africa today? It’s Africa for Africa.

... And no, it’s not the West either ;)

AFRICONSUMPTION 2www.trendwatching.com/trends/africonsumption

http://www.trendwatching.com/trends/africonsumption/




In March 2014, the Special Status Agreement between

Ethiopia and Kenya passed, allowing Kenyan businesses

to open offices in Ethiopia.

KENYAN MINISTRY OF FOREIGN AFFAIRS AND INTERNATIONAL TRADE, MARCH 2014






AFRICONSUMPTION | From

Mali to Madagascar, Sahara to

Savannah – the increasingly

intertwined and interconnected

relationships between the

Southern, Western and Eastern

regions of sub-Saharan Africa are

paving the way for a new era of

connected citizens, culture andconsumerism.

DEFINITION






Legislative changes are making commerce between

African nations easier.

African growth rates remain strong.

Africa’s youth are reinventing the continent’s cultures

and traditions.

African brands understand African consumers better

than anyone.

1. Where there’s a will there’s a way!

2. The prosperity movement

3. ‘Young, African and Proud’

4. Local understanding

Four big forces are

driving this trend...

They are: political will, prosperity, youth

culture, and local understanding.






Especially when it’s the “will” of the

powers that be.

1. Where there’s a will,

there’s a way!

Since the dawn of Africa’s independence, political leaders have

spoken about unity amongst African nations. Fast-forward 50+

years: geopolitics and macroeconomics have finally come of age.

African unity is back on the agenda.

Today, Africa’s politicians are realising that as the African

consumer becomes an object of global interest, the regulatory

barriers that stop African brands from reaching those consumers

should be dismantled.

The result? A plethora of legislative action and cross-national

agreements easing the path for African brands across the

continent.

DRIVERS






Led by President Paul Kagame of Rwanda, Uhuru Kenyatta

of Kenya, African Development Bank President Dr Donald

Kaberuka and Nigerian billionaire Aliko Dangote, discussion

of a visa-free continent dominated the World Economic Forum

on Africa hosted in Abuja, Nigeria in May 2014.

THE NEW TIMES RWANDA, MAY 2014








When Nigeria’s GDP was recalculated – or ‘rebased’ – using

more recent (2010) production patterns, the estimated size of

the economy more than tripled to USD 488 billion, making

Nigeria the largest economy in Africa and the 26th largest

in the world.

Nigeria’s new GDP raises the question whether there

are other African economies with a systematically

underestimated GDP, since only nine African countries are

reported to have partially or wholly rebased

and re-benchmarked their GDP.UNITED NATIONS ECONOMIC COMMISSION FOR AFRICA , APRIL 2014






Africa’s youth are catalyzing a new wave

of consumption.

3. Say it loud: ‘Young,

African and Proud!’

The world’s youngest continent has a lot to say for itself as

far as AFRICONSUMPTION goes. Think Afrobeats, Azonto

and even Nollywood’s explosion...

Africa’s youth are no longer willing to accept the influences

and tastes of their post-colonial parents. Instead, driven

by rising prosperity and cultural confidence, they are

reinvesting in – and reinventing – African culture and

traditions, and making consumption choices to match.

And that makes Africa’s youth a perfect fit when it comes

to AFRICONSUMPTION.

DRIVERS






Localized demands needs localized

solutions.

4. Local understanding

Let’s keep this simple:

No brands understand African consumers better than

African brands.

Okay, it might be a little more complex ;)

Yes, Africa is a diverse continent. But commonalities and

crossovers between African nations means that, often,

African brands are best placed to serve consumers across

the region.

Of course, plenty of consumers (often older and more

affluent) still look to foreign brands as a sign of social

status and quality. But as trade barriers fall, innovation

increasingly democratized and the online space

connects millions, African brands will have ever-more

chances to be, and to prove themselves, as good if not

better than foreign alternatives.

DRIVERS






FEATURED INNOVATIONS

Let’s take a look at the boldest brands targeting African

consumers across the continent and spearheading

AFRICONSUMPTION...







Jovago

African hotel booking platform opens up itsservices to Djibouti, Malawi, Zanzibar and

South Sudan


http://www.jovago.com/












Famous Brands

South African fast food group announcesnew outlets in Morocco and Egypt


http://www.famousbrands.co.za/news_articles/2014/famous_brands_middle_east_north_africa.php











Oju

Mauritian startup launches black emoji forAfricans and the diaspora


http://www.ojuafrica.com/











Choppies Enterprises

Botswanan supermarket targets lowermiddle classes in other African markets


http://www.choppies.co.bw/











Jumia

Uganda becomes the 6th African market that‘Nigeria’s Amazon’ enters


http://rocketinternet.pr.co/69917-jumia-launches-in-uganda











Pan African University

Pan-African workshop recruits students fromacross the continent


http://www.jkuat.ac.ke/pauisti/2014/03/pioneer-gradudate-research-workshop-pauisti/











iROKO Partners

Nollywood online distributor offers DVDs tooffline South Africans


http://irokopartners.com/











SABMiller

Brewery taps into Biafran nostalgia to appealto Nigerian drinkers


http://www.sabmiller.com/index.asp?pageid=2458











Ghana International Bank

West African bank moves into lucrative EastAfrican market


http://www.ghanabank.co.uk/about-us/recent_news











Foschini Group

South African clothing outlet takes onGhana’s emerging middle classes


http://www.reuters.com/article/2014/02/04/safrica-foschini-idUSL5N0L916020140204










NEXT

A few pointers on how to make the best of

AFRICONSUMPTION while it’s hot...






Where to go first? Starting with the much hyped

Nigeria or Kenya may not be the optimal strategy.

And the same goes for your geographical closest

neighbours.

Instead find a common thread linking current and

potential customers, consider who can afford and

will benefit the most from your offering, then plot

your route. See how Choppies (above) did just that.

Plot your route wisely

NEXT






All this talk of Pan-Africanism doesn’t mean Africa

is a single country. AFRICONSUMPTION doesn’tsimply mean duplicating tried and tested formulas

from one market to another.

To apply this trend well, respect the continent’s

plethora of cultures and – like SABMiller’s Hero

above – go the extra mile to tailor for the selected

market.

Tailor!

NEXT






Take localization to the extreme by offering

tailored products, services or experiences to a

limited area, tribe or demographic.

It is guaranteed to thrill the hand-picked

customers, patriots or exclusivity-seeking, luxury

consumers who you single out.

Limited Edition by

Limiting Location

NEXT






If Limited Location isn’t the play for you, howabout setting your sights on ALL Africans (and the

North too), as the Pan African University (above)

did? You’re bound to learn heaps from such a

range of diverse customers. So think Pan-African

campaigns to intra-continental services, and don’t

forget the diaspora – with many still connected to

the continent, they will certainly appreciate your

attention: see how Oju (above) catered to them.

Limitless Location

NEXT






There’s plenty of AFRICONSUMPTION love to

go round. Plus, you have thousands of exciting

companies to choose, from across 54 extremely

diverse countries, so what are you waiting for?

Partner up with one of these promising local brands!

And not forgettingthe non-African

brands wanting in onthe action...

NEXT









http://trendwatching.com/trends/consumertrendcanvas/



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2014-07-AFRICONSUMPTION