7/30/2019 Market Opportunities at the Base of the Pyramid. How
Can Israeli Companies Become Involved?
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Dd yo o h?
3.7billionpeopleworldwideliveonlessthan$3aday.Thismarketcurrentlyrepresentsanestimated
$5trillioninpurchasingpower.
Peoplelivinginpoorareasoftenendupspendingmoremoneythanthoseinmoreafuentareasforbasic
goodsandserviceslikewaterandelectricity.Therearesignicantmarketopportunitiesinndingways
toreducethesecosts.
Morethan2billionpeopleworldwidelackclean,affordableenergyforlightingandcooking,2billion
peoplehavenoaccesstosafewater,2.5billiondonthaveaccesstoadequatesanitationandmostofthe
worldhaslimitedornoaccesstodoctors.Cutting-edgetechnologieslikeoff-gridwaterandelectricity
solutionsandpointofcarediagnosticsarenowmakingsignicantinroadsinaddressingthesechallenges.
Overthepastdecade,sixoutofthetenfastestgrowingcountriesintheworldwereinAfrica.Overall,
growthratesinAsia,AfricaandLatinAmericaareexpectedtofaroutstripthatofOECDcountriesinthe
foreseeablefuture.
Increasingly,newbusinessanddistributionmodelsareemergingwhichmakeitfeasibleforinnovatorsto
developproductsthatproviderealvaluetothepoor,atanaffordableprice.Companiesaroundtheworld
aretakingupthechallengeofthetriplebottomlineprovidingsocialvaluethroughenvironmentally
sustainableproductsthatearnafairprotthroughhighvolumesalesatapriceaffordabletopoorpeople.
Today,75%oftheworldspoorliveinmiddleincomecountries(MICs),notlowincomeones.Halfofthoselivingonunder$2adayareinIndiaandChina.Thisshiftinthedemographicsofpovertytohighly
populatedMICs,withtheirbettercommunicationsandtransportationinfrastructures,makesiteasierfor
companiestoreachdisadvantagedpopulations,andprovideneededgoodsandservicesataffordablecost
tolargenumbersofpeople.
Theglobalcommunityhaspledgedover$100milliondollarsannuallytosupportpurchaseandtransfer
oftechnologiesforclimatechangeadaptationandmitigationtodevelopingcountries.
Africa has the fastest growingmobile phonemarket in theworld.
There aremore mobile phone
subscribersinAfricathanintheUSortheEU.Africanscommonlyusemobileappsforbanking,farming,
communicatingwiththeirgovernments,andawiderangeofotheractivities.
Market OppOrtunities tHe Base OF tHe pYraMiD:HOw Can israeli
COMpanies BeCOMe invOlveD?
