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Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014 Growth hotspots in Africa: Tools you can use to identify and take advantage of growth opportunities Mani James Frost & Sullivan

Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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Page 1: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

Growth hotspots in Africa: Tools you can use to identify and take advantage of growth opportunities

Mani JamesFrost & Sullivan

Page 2: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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Agenda

Introduction to Session

Key Global Mega Trends to 2020

Cover Stories in 2020

Key Success Factors

Key African Mega Trends to 2020 and Implications

Strategic conclusions

Page 3: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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Global Mega Trends and Understanding its Relevance

What is a Mega Trend?Mega Trends are transformative, global forces that define the future world with their far reaching impact on business, societies, economies, cultures and personal lives.

Urbanisation – City as a CustomerSmart is the New GreenSocial Trends

Connectivity and Convergence

Bricks and Clicks

Innovating to Zero

New Business Models: Value for ManyBeyond BRIC: The Next Game Changers

Future Infrastructure DevelopmentHealth, Wellness and Well BeingFuture of Mobility

Page 4: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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Urbanisation - “City as a Customer”- Global View

Page 5: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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Mega CitiesMega RegionsMega SlumsMega Corridor

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Cities, and Not Countries,Will Drive Wealth Creation In the Future Cities like Seoul, Budapest and Bogota account for 50% of the country’s GDP; Gauteng will account for roughly 40% of South Africa’s GDP by 2020What are the Micro Implications? New Products and Solutions High Economic Power Hub and Spoke Business Model Transit oriented development New Mobility Solutions City as a Customer

Page 7: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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Mega Cities in 2025

Chongqing

Note: A Mega City has a population greater than 8.0 million and a GDP of $250.00 billion or more.

Source: United Nations, Department of Economic and Social Affairs, Population Division (2012);World Urbanization Prospects: The 2011 Revision; and Frost & Sullivan analysis.

Population in 2025

More than 27 million

18–27 million

8–18 million

Beijing

Chongqing

WuhanTianjin

Chengdu

Harbin

Tokyo

Osaka-KobeDelhi

MumbaiMexico City

New York City

São Paulo

Kolkata

Los Angeles

Buenos Aires

Istanbul

Cairo

Rio de Janeiro

Jakarta

Moscow

ParisLondon

Chicago

Seoul

Tehran

Madrid

ShenzhenFoshan

Guangzhou

Hong Kong

Shanghai

Hangzhou

Shenzhen

Nanjing

Bogotá

Mega Cities, Global, 2025

Page 8: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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Global Snapshot of Sustainable/Eco Cities in 2025

Note: Eco Cities are cities built on a green initiative, from buildings to transportation, governance, city planning, energy, and technology. These cities are either upgraded or built from scratch.

Sustainable/Eco City in 2025

Sustainable/Eco City builtfrom scratch

AccraJohannesburgCape TownDurbanTunisMasdar CityDoha

Belo HorizonteBogotáBrasíliaRio de JaneiroSão PauloCuritibaMexico City

PortlandSacramentoOaklandSan DiegoDallasHoustonOrlandoAustinMinneapolisSan JoseDenverBostonOttawaMontrealPhiladelphiaWashington DCColumbusEdmonton

CardiffBrusselsZurichLyonFrankfurtMilanRomeCambridgeshireMarseilleTampere

GenevaGrazRigaVilniusMetzTubingenMontpellierBordeauxCasablancaNorwichHamburg

ManchesterGothenburgIsle of WightGlasgowLiverpoolDublinMarseilleBergenEdinburghNantesGyorNorth America

Latin America

Europe

Middle East and Africa

Asia-Pacific & Australia

IstanbulBursaAnkaraEskisehirIzmirDenizliAntalyaAdanaEdinburgh

Gujarat International Finance Tec City (GIFT)Sino-Singapore Tianjin Eco-city, TianjinNanjingHong KongFoshanGuangzhouWuxiOsakaYokohamaWanzhuang Eco-city, HebeiMedanPalembangJakartaSurabaya DenpasarMakasarBalikpapanAdelaideMoreland

Page 9: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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Mega Regions in 2025

Greater Sao Paulo28.8 million

Greater Buenos Aires36.5 million

Central Mexico31.4 million

Chennai, Kanchipuram, Pondicherry15.0 million

Greater Los Angeles20.9 million

Tri-state Area36.9 million

Lagos and Eko Atlantic City25.0 million

Marmara Mega RegionIstanbul, Kocaeli

20.6 million

Mumbai, Bhiwandi,

Kalyan, Thane, Ulhasnagar34.4 million

New Delhi, Greater Noida, Ghaziabad,

Gurgaon, Faridabad

28.5 million

Population greater than 40 million

Population from 20 million to 40 million

Population from 15 million to 20 million

Beijing-Tianjin51.0 million

Shanghai67.9 million

Chongqing-Chengdu

28.9 millionWashington, D.C.-Baltimore Area15.6 million

Greater Rio de Janeiro 17.2 million

Cairo-Giza17.6 million

Source: United Nations, Department of Economic and Social Affairs, Population Division (2012); World Urbanization Prospects: The 2011 Revision; and Frost & Sullivan analysis.

National Capital Region in the Philippines27.7 million

Guangdong Region58.7 million

Greater Jakarta 29.8 million

Greater Bangkok19.2 million

Kolkata, Howrah21.6 million

Johannesburg and Pretoria7.6 million

Emerging Mega Region

Mega Regions, Global, 2025

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Mega Corridors in 2025

Mega Corridors, Global, 2025

Latin America (2) • Rio de Janeiro-Sao Paulo-

Campinas Corridor• Toluca-Mexico City-Puebla

Corridor

United States (3)• Southern

California• Great Lakes

Corridor• Bos-Wash (D.C.)

Corridor

Africa (3)• Abidjan-

Ouagadougou Corridor

• North-South Corridor

• Kampala-Nairobi-Mombasa Urban Corridor

India (8)• Delhi Mumbai

Industrial Corridor• Mehsana-Valsa• Mumbai-Ahmedabad• Mumbai-Nagpur• Bangalore-Belgaum• Hyderabad-Hindupur• Srikakulum-Nellore• Chennai-Hosur

Cross-country (1)Beijing-Tokyo-Pyongyang-Seoul Corridor

Japan (1)Tokyo-Osaka Corridor

Australia (2)• Brisbane Urban Corridor• Perth Urban Corridor

Jakarta (2)• Sumatra-Java• Jakarta-East Java

Malaysia (5)• Sarawak Corridor of

Renewable Energy (SCORE)

• Sabah Development Corridor (SDC)

• East Coast Economic Region (ECER) Corridor

• Northern Corridor Economic Region (NCER)

• Iskandar Development Region (IDR) Corridor

Turkey (1)Istanbul-Izmir Mega Corridor

China (7)• Beijing-Harbin and Dalian• Beijing-Shanghai• Shanghai-Chengdu• Ningbo-Shenzhen• Beijing-Guangzhou • Shanghai-Kunming• Guangzhou-Shenzhen-Hong

Kong

Note: Mega Corridors are corridors that connect two major cities or Mega Regions (60 km or more apart, and with a combined population of 25 million or more). The corridors can be planned transportation or economic corridors (with planned investment going into transport infrastructure, industrial zones, energy, or real estate) or naturally evolving urban corridors.

Mega Corridors (21)

Transportation Corridors (16)

Source: UN-Habitat and Frost & Sullivan analysis.

Europe (2)• Trans-European

Network Transport (TEN-T)

• Blue-Banana Corridor

Regions with Mega Corridors

Page 11: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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Mega Slums by 2025

Slum Population, Global, 2025

1.1

Oceania

25.1

Northern Africa

41.8

88.7

Europe

Southeastern Asia

89.4

Western Asia

196.8

Latin America and the

Caribbean

362.0

Eastern Asia

475.7

476.0

South-Central

Asia

Sub-Saharan Africa

Source: UN-Habitat and Frost & Sullivan analysis.

Forecast of Asian Slum Population as a Percent

of Total Slum Population, Global, 2025

Note: The numbers in the circle are in millions

Page 12: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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Population & GDP Trends by 2025

5.0 10.0 15.0 20.0 25.0 30.0 35.00.00

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

1,600.00

1,800.00

Toronto

Karachi

Lagos

ManilaBangalore

ChennaiLahore

Ho Chi Minh City

BangkokLima

Belo Horizonte

RiyadhAhmedabad

Dongguan

Santiago

Tehran

HaerbinMadrid

Miami

Philadelphia Chengdu

Foshan

Hangzhou

Nanjing

NCT of DelhiMumbai

São Paulo

Mexico City

Buenos AiresRio de Janeiro

CairoKolkata

GuangzhouWuhan

Jakarta Istanbul

ChongqingTianjin

ShenzhenChicagoLondon

Paris

Beijing

Moscow

Osaka-KobeSeoul

Hong Kong

Los Angeles

Shanghai

Tokyo: $3,253 billion

New York: $2,542 billion

GD

P (

$ B

illio

n)

Population (Million) Source: Frost & Sullivan analysis.

Population and GDP for Mega Cities, Global, 2025Note: The red dotted line shows the minimum GDP ($250.00 billion) and population (8 million) required to identify a Mega City. The shaded region includes all the Mega Cities of 2025.

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Mega Cities GDP Trends by 2025

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 30.0

-250.00

-100.00

50.00

200.00

350.00

500.00

650.00

800.00

950.00

1,100.00

1,250.00

1,400.00

1,550.00

1,700.00

1,850.00

2,000.00

Mumbai

São Paulo

Mexico City

Kolkata

Shanghai

Beijing

Buenos Aires

Los Angeles

Cairo

Rio de Janeiro

Istanbul

Osaka-Kobe

Shenzhen

Chongqing

Guangzhou

Paris

SeoulJakarta

Moscow

Chicago

Tianjin

Wuhan

London

Tehran

Chengdu

Foshan

Nanjing, JiangsuHangzhou

Haerbin

Hong Kong

Madrid

Bogotá

Size of the Bubble = Area in sq. km in 2025

Tokyo: $3,253

New York: $2,542

• Mega Cities to contribute $30 trillion GDP (nominal) by 2025• 541.6 million people to live in Mega Cities by 2025• 13 out of 35 Mega Cities to have a population greater than 15 million by 2025• Globally, China to have the most Mega Cities (13), and these will contribute 27%

of the national GDP (nominal) by 2025

GD

P (

$ B

illio

n)

Population (Million)

Source: Frost & Sullivan analysis.

Comparative Analysis of Mega Cities, Global, 2025

Page 14: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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Urbanisation - “City as a Customer”- Africa

Page 15: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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Urbanisation in Africa

Lagos+Eko Atlantic City

16.3 Million People

Luanda & Dar Es Salaam• 2020, Luanda is expected to grow from 4.7

million in 2010 to over 8 million by 2025 forming a mega-city of high population density and commercial activity

Abidjan – Accra – Lagos & North South Corridors• Transport routes across the region will be

expanded and integrated to create corridors for trade and inter--continental co-operation by linking mega-cities

Lagos and Eko Atlantic City Region• Lagos’s Eko Atlantic City will merge with the

city of Lagos to form a future business gateway to Africa – a mega-region of over 16 million

Cairo

Cape Town

Luanda

Ouagadougou

Accra

Abidjan

Page 16: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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Africa – Population Forecast

Lagos

Cairo

Kinshasa

Source: UN Department of Economic & Social Affairs and Frost & Sullivan analysis.

Cities with Greatest Urban Population, Africa, 2010, 2025

2010 2025

Cairo 11 13.5

Kinshasa 8.8 15

Lagos 10.6 15.8

1.0

3.0

5.0

7.0

9.0

11.0

13.0

15.0

17.0

Year

Urb

an

Po

pu

lati

on

(M

illio

n)

South Africa currently contributes 15.6% of Africa’s GDP; Egypt contributes 14.8%.

Page 17: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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Africa – Population Forecast – Region wise

1995 2000 2005 2010 2015 2020 2025

Eastern Africa 43821 53041 63679 76791 93132 113090 137299

Middle Africa 29764 35899 43741 53678 65601 79515 95559

Northern Africa 74886 85540 97580 111280 125946 141173 156973

Southern Africa 24625 28053 30430 31987 33396 34930 36481

Western Africa 73967 91858 111734 134165 159592 187484 218272

12,50037,50062,50087,500

112,500137,500162,500187,500212,500237,500

Year

Urb

an

Po

pu

lati

on

(‘0

00

)

Urban Population Forecast by Region, Africa, 1995–2025

Source: UN Department of Economic & Social Affairs and Frost & Sullivan analysis.

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Mega Cities will increase by 25% by 2025; at an average growth rate of 3.4%, 1.2 billion people, 60% of Africa’s population, will be urbanised by 2050

Growth of African Cities% increase, 2010- 2025 forecast

Cape Town

Johannesburg

Durban

Cairo

Casablanca

Algiers

Alexandria

Douala

Accra

Ibadan

Lagos

Dakar

Abidjan

Addis Ababa

Luanda

Kinshasa

Nairobi

Dar es Salaam

0 10 20 30 40 50 60 70 80 90Data Source: Africa Progress Report, 2010

Algiers

Dar es Salaam

Alexandria

Nairobi

Casablanca

Accra

Abidjan

Addis Ababa

Dakar

Ibadan

Douala

Cape Town

Durban

5.6 million3.6 million

4.1 million

4.3 million

3.2 million

3.1 million

4.7 million

6.2 million

6.2 million

3.8 million

3.2 million

3.5 million

6.3million

Luanda8 million

Migration Urban Population, 2025Mega City population, 2025

Page 19: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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Mega Regions in Africa

Mega Regions in 2025

Potential Mega Regions in 2030

Source: United Nations, Department of Economic and Social Affairs, Population Division (2012); World Urbanization Prospects: The 2011 Revision; and Frost & Sullivan analysis.

Lagos and Eko Atlantic City Region

Population 2025: 25 M

Cairo-GizaPopulation 2025: 17.6 M

Johannesburg & Pretoria Region

Johannesburg, Sandton, Randburg, Midrand,

Centurion, and PretoriaPopulation 2025: 7.6 M

Mega Regions, Africa, 2025

Page 20: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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Mega Corridors in Africa

Source: UN-Habitat, 2010 and Frost & Sullivan analysis.

Abidjan

Ouagadougou

Cape Town Johannesburg/Pretoria

Dar es Salaam

Nairobi

Addis Ababa

Accra

Ibadan

Lagos

Luanda

Kinshasa

CairoAlexandria

Population less than 25 million people

TransportationCorridors

1,000 km Abidjan-Ouagadougou Corridor

The Greater Ibadan Lagos Accra (GILA) Corridor

• Combined population greater than 18 million

• Contributes combined GDP of about $127.6 million

Trans-Cunene CorridorWill link the Democratic Republic of

Congo (DRC) with South Africa through Angola and Namibia

North-South Corridor• Facilitate inter-regional

trade from Cape to Cairo • Free trade area

comprising 533.0 million people

• Combined GDP of $833.00 billion or 58% of Africa’s GDP

900 km Kampala-Nairobi-Mombasa Urban Corridor

The North Delta Region• Combined population of 77 million• 3 emerging corridors: Cairo-Suez;

Cairo-Alexandria; Cairo-Ismailia

Transportation Corridors, Africa, 2025

Page 21: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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Mega Slums in Africa

Percent of Urban Residents by Type of Settlement, Africa, 2020

Splintered UrbanisationAfrican urban communities will be comprised of 70% informal settlement dwellers living alongside an emerging middle class, similar to condition in India.

Source: UN-Habitat and Frost & Sullivan analysis.

Lagos, Nigeria75% of populationlives in informal settlements

Luanda, AngolaCacuaco to have 600,000-plus people

Johannesburg/PretoriaSoweto

Kinshasa, Democratic Republic of Congo

Nairobi, KenyaKibera to have 1 million-plus people

Ethiopia99.4% of country’s population livesin informal settlements

Chad 99.4% of country’s population lives in informal settlements

Maputo, Mozambique

Cape Town, South AfricaKhayelitsha

Forecast of Major Slums, Africa, 2050

Living in Slums 70.0%

Not Living in Slums 30.0%

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What is a Mega Trend?Mega Trends are transformative, global forces that define the future world with their far reaching impact on business, societies, economies, cultures and personal lives.

Urbanisation – City as a CustomerSmart is the New GreenSocial Trends

Connectivity and Convergence

Bricks and Clicks

Innovating to Zero

New Business Models: Value for ManyBeyond BRIC: The Next Game Changers

Future Infrastructure DevelopmentHealth, Wellness and Well BeingFuture of Mobility

Global Mega Trends and its Relevance

Page 23: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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Mega Trends that will Impact Africa

Low Degree of Certainty

Deg

ree

of

Imp

act

on

Afr

ican

Eco

no

my

Lo

wH

igh

High

Urbanisation

Responsible Revolution

Space Jam

Connecting the Unconnected

Innovation to Zero

Infrastructure Development

“Value for Many” Business Model

M-Health

Devices

E-Governance

Note: The size of the bubble represents the scale of opportunity within each Mega TrendThe Mega Trends have been plotted based on quantitative and qualitative reasoning

Renewable Power

Regional Integration

Invest Africa

The Middle Bulge

Source: Frost & Sullivan.

Page 24: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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Outlook and Implications for Global Growth

Europ

ean

Union

Centra

l and

Eas

tern

Eur

ope

Develo

ping

Asia

ASEAN-5

Latin

Am

erica

and

the

Caribb

ean

Midd

le Eas

t and

Nor

th A

frica

Sub-S

ahar

an A

frica

United

Sta

tes

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

0.0

2.3

6.3

5.0

2.7

2.1

5.0

2.3

1.3

2.7

6.5

5.4

3.1

3.8

6.0

3.1

2013 2014

GD

P G

row

th (

%)

GDP Growth Prospects for 2014

Note: Developing Asia composed of 29 countries including China. ASEAN-5 comprises Indonesia, Malaysia, Philippines, Thailand, and Vietnam. Sources: IMF and Frost & Sullivan

Page 25: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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African Growth Predictions – Key Sectors

Africa – The Summary

Energy: $450 billion

Electricity infrastructure, renewable energy,

rehabilitation of existing structures

Water: US$250 billionIncludes sanitation,

water infrastructure and chemicals,

renewable water, and water and wastewater

treatment.

Oil & Gas: US$300 billionInfrastructure,

extraction chemicals, and rehabilitation

Agriculture: US$120 billionIncludes fertilisers, crop protection, animal health, feed

and additive products, and plant biotechnology.

Infrastructure Development: >US$500

billionTransport infrastructure and rehabilitation, housing, ICT, building and other materials,

construction and PPE

Manufacturing: $130 billionManufacturing, food packaging and fortification.

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Implications & Opportunities

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Macro to Micro Approach - Taking Mega Trends from Information to Strategy Implementation

Macro MicroMega TrendSelected trends that impact your business and markets

Sub TrendA sub-layer of trends that has a wide ranging impact Impact to Your IndustryVisualising the roadmap of these critical forces through scenario-building and macro economic forecasts

Impact on Future Product/ Technology

Analysis of Opportunities and Unmet Needs

To

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Macro to Micro Implications of Urbanisation

Impact of UrbanisationUrbanisation will lead to many cross-sector implications and opportunities, and will create

cities as customers that demand infrastructure

solutions.

Retail

• Bricks and clicks• Change from big box to small box• Single channel to omnichannel• Social media marketing• Zero design to shelf• Virtual stores• Retail parks

Healthcare

• Hub-and-spoke healthcare-delivery model• e-Healthcare• Medi Cities• Healthcare data exchanges

Logistics

• Warehousing: consolidation centers

• Transportation: shared fleets, hybrid vehicles, polarizing fleet

• Last mile: night and early morning deliveries

• Supply-chain management: LBS-based tracking

Mobility

• Park-and-ride systems• Car- and bike-sharing• Micro Mobility• Low-emission mobility (e.g., electric

cars)• Multimodal Mobility Security

• Safe Cities• Intelligent security systems• Biometric and neural identity• Integrated sensors• Reactive disaster management solution

Energy

• Smart Grids: Demand-response, energy-management systems

• Smart Meters• Smart Home Appliances• Flow and regenerative

technologies• Renewable integration

Smart Products

• Smart Bandage• Smart Door• Smart Cities Solutions• Smart Buildings• Smart Materials

Image Source: Dreamstime. Source: Frost & Sullivan analysis.

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Opportunities Across various sectors in Africa

`

2020

Electricity$0.5 trillion in

electricity infrastructure

Healthcare Infrastructure

$30 billion private healthcare infrastructure

Infrastructure$0.3 trillion in road

and rail infrastructure

upgrading

Port Infrastructure

Port infrastructureinvestment and

upgrading of $0.2 trillion

Water SanitationInfrastructure and

Chemicals$0.6 trillion in investment

Key Opportunities, Africa, 2010-2020

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Agenda

Introduction to Session

Key Global Mega Trends to 2020

Cover Stories in 2020

Key Success Factors

Key African Mega Trends to 2020 and Implications

Strategic conclusions

Page 31: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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The Cover Story Concept – Interactive Session

Attendee’s are broken into tables and asked to describe a future

state inspired by the presentation using a provided template. The goal of each

table team is to imagine the year is 2020:

What is your industry/topic world? - the headline

What is the substance of the headline?

What are the interesting facts of the cover story?

What is the strategic meaning for the industry?

Who would be quoted (be creative)?

Content is collected and is presented by table and examples are given. To the right is an

example provided to the audience on a non industry related topic to give guidance

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Template to Use on Your Flip Chart

“Provocative Catchy Headline”

Any graphics / chart example / sketch / picture to illustrate your

point..

Any Key Words / Buzz words

Specifics behind the headlines

Substantive Quotes from who may be industry thought leaders – think

out of the box!!

Strategic action points the team takes as a response to headline

Page 33: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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Cover Story 2020

Human Pilots Become Extinct

• Budgets shifted to unmanned vehicles

• Planes controlled by high performance computing, pilots sit on the ground

• Flight attendants replaced by vending machines, robotic assistants

“Now I can play my game without the flight attendants complaining”

Alec Baldwin

Provides massive cost reductions in salaries reductions both with pilots and flight

attendants

Significant increase in plane efficiencies with 100% computer controlled

Cover Stories have been added and edited by the Frost & Sullivan Team

Robotic Pilots

Unions Decline

Efficiency Rises

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New technology Creates Unbreakable Glass

• Windows and doors now safer• Road Traffic accidents down due to windshield

protection• Building insurance rates reduced for those with

unbreakable glass• Unbreakable glass is a substitute for other materials

such as walls, floors, roofs

“Now we can throw stones at glass houses”

Unknown but we assume a child under 14!

• Crime rate reductions substantial• Impact on healthcare with less accidents• Impact on Insurance with lower premiums /

higher security• Transforms construction material space• Environmental impact with less

replacements needed

Bendable

Agile

Unbreakable

Disruptive

Cover Story 2020

Cover Stories have been added and edited by the Frost & Sullivan Team

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Life Integrated

• 77% of the world is on the GRID

• 50% of terminal illnesses averted

• Commute times halved by traffic management

Seamless identity

Life expectancy increases 5% and healthcare costs decline 50% due to

proactive emergency issue management

Information delivered expands 100X with wireless

Information storage 90% in the cloud

Power availability must be universal

Ubiquitous access delivered via biometric security

Integration

Compatibility

Responsiveness

Cover Story 2020

Cover Stories have been added and edited by the Frost & Sullivan Team

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Population Tops 9Bn in 2020 Associated with Shortages

• Water requires purification

• Energy costs escalate as supplies are short due to high demand

Breakthroughs in fermentation of cellulose saves water, energy and

creates new jobs globally

Green chemicals reach parity with petroleum based products – alcohol

bases – sugar based

Population is 7Bn today

Creates need for radical production techniques

Industry focused on meeting demand of higher than estimated population numbers (was

estimated at 8Bn in 2012 by UN)

Cover Story 2020

Cover Stories have been added and edited by the Frost & Sullivan Team

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Please use this template to fill the cover story

Page 38: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

Strategic Conclusions & Key Success Factors

Page 39: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

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Key Strategic Conclusions

1. Mega Trends impact multiple industries. Examine them carefully to optimally develop medium and long term strategies in current and new markets

2. It is important to understand the eco-system of the Mega Trend, possible convergence and the elements of the value chain which have most profitability

3. All these trends are global and have global ramifications thereby offering scalable opportunities

4. These forces are changing rapidly and bringing new competencies into play at half the life-cycle speed of the past decade

5. Organisations’ need “Mega Trend” champions and teams within their organisation structure to best exploit the opportunities

6. In Africa we need to particularly understand the opportunities arising locally as a consequence of global mega trends – e.g. local markets, international markets, as part of international supply chain

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Focus on maintaining key cash cow products in

the broad range

Focus on maintaining key cash cow products in

the broad range

Position the global quality brand in the

market

Position the global quality brand in the

market

Affordable Pricing and Promotion targeting the

middle class

Affordable Pricing and Promotion targeting the

middle class

Direct Consumer approach is key –

absolute must have

Direct Consumer approach is key –

absolute must have

Trusted brand & loyalty - Strong local presence

Trusted brand & loyalty - Strong local presence

Robust country and regional strategy

Robust country and regional strategy

Key Success Factors

Strengthen the e-commerce platforms

Strengthen the e-commerce platforms

Key Success Factors for Africa – What has Worked ?

Strong local partnershipsStrong local partnerships

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Distribution Strategy – How strong are your

partnerships ?

Distribution Strategy – How strong are your

partnerships ?

Physical Proximity – Are you to your customer ?

Physical Proximity – Are you to your customer ?

Product Porfolio differentiation – How do

you differentiate ?

Product Porfolio differentiation – How do

you differentiate ?

Consumer focus – Customer‘s customer – Do you know the need ?

Consumer focus – Customer‘s customer – Do you know the need ?

Tough infrastrucure and regulatory framework – How do you navigate ?

Tough infrastrucure and regulatory framework – How do you navigate ?

Customised solutions – Are you ready and

capable ?

Customised solutions – Are you ready and

capable ?

More global companies locating to Africa – How

do you defend your turf ?

More global companies locating to Africa – How

do you defend your turf ?

Regional and country strategies – What is your

strategy & why ?

Regional and country strategies – What is your

strategy & why ?

Strategic Questions for Africa

What Are the Strategic Questions You Need to Consider?

Page 42: Spot the Business Trends and Opportunities in Africa from the World Design Capital for 2014

Who is Frost & Sullivan

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Introduction to Frost & Sullivan

A Trusted Growth Partner with 51 Years of Experience

• Frost & Sullivan is a global growth consulting company that partners with clients to support them to grow their businesses

• Founded in 1961

• 10,000+ clients worldwide, including emerging companies, SME, the Global 1000 and the investment community

• We offer services ranging from industry research, growth consulting, corporate training and development, and events

• African office based in Cape Town– Staff compliment of 60 focussed on Africa

Growth PartnershipServices

Growth Consulting GIL University Events

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Introduction to Frost & Sullivan

A Wide Industry and Technology Breadth Uncovering New Markets and Creative Growth Ideas

Automotive&

Transportation

Aerospace & Defense Measurement &Instrumentation

Information &Communication Technologies

HealthcareInfrastructureEnergy & PowerSystems

Chemicals, Materials& Food

Electronics &Security

Industrial Automation& Process Control

AutomotiveTransportation & Logistics

ConsumerTechnologies

Minerals & Mining

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Implementrolling out growth

initiatives

Evaluatedevelop and evaluate

growth strategies

Generateidentifying and harvesting

growth opportunities

Service Offering

Our Exclusive Growth System Focuses on the Whole Growth Cycle

Implementation Consulting;Growth Team Membership;GIL University

10 Growth Processes;Growth Partnership Services

Growth Partnership Services;Growth Workshops;Growth Excellence Matrix;Custom Research

Building insights that define successful growth for industry leadersBuilding insights that define successful growth for industry leaders

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Contact detailsContacts

For more information on this presentation, please contact:

Samantha JamesCorporate Communications

E mail: [email protected]