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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 ;)
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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
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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 and consumerism.
DEFINITION
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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.
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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
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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
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Africa’s pockets deepen, as the West’s troubles worsen.
2. The prosperity movement
Even as other emerging economies have decelerated in
growth, Africa’s growth rates continue to shock and delight
economists worldwide.
Furthermore, as recessions and commercial saturation
continues to suffocate brands in the West, prospects for
African brands seeking expansion into other African markets
become more robust.
After all, African countries are now successfully telling (and
selling) their own stories on a global scale. The consequence
is a new opportunity for African brands: go global by (first)
staying local.
DRIVERS
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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
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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
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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
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FEATURED INNOVATIONSLet’s take a look at the boldest brands targeting African
consumers across the continent and spearheading AFRICONSUMPTION...
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feAtured innOVAtiOnS
JovagoAfrican hotel booking platform opens up its services to Djibouti, Malawi, Zanzibar and South Sudan
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feAtured innOVAtiOnS
Famous BrandsSouth African fast food group announces new outlets in Morocco and Egypt
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feAtured innOVAtiOnS
OjuMauritian startup launches black emoji for Africans and the diaspora
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feAtured innOVAtiOnS
Choppies EnterprisesBotswanan supermarket targets lower middle classes in other African markets
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feAtured innOVAtiOnS
JumiaUganda becomes the 6th African market that ‘Nigeria’s Amazon’ enters
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feAtured innOVAtiOnS
Pan African UniversityPan-African workshop recruits students from across the continent
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feAtured innOVAtiOnS
iROKO PartnersNollywood online distributor offers DVDs to offline South Africans
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feAtured innOVAtiOnS
SABMillerBrewery taps into Biafran nostalgia to appeal to Nigerian drinkers
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feAtured innOVAtiOnS
Ghana International BankWest African bank moves into lucrative East African market
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feAtured innOVAtiOnS
Foschini GroupSouth African clothing outlet takes on Ghana’s emerging middle classes
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NEXTA few pointers on how to make the best of
AFRICONSUMPTION while it’s hot...
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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
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All this talk of Pan-Africanism doesn’t mean Africa
is a single country. AFRICONSUMPTION doesn’t
simply 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
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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
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If Limited Location isn’t the play for you, how
about 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
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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 forgetting the non-African brands wanting in on the action...
NEXT
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