African Markets INSEEC Masters 2014
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African Markets INSEEC Masters 2014

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Delivered on 4-5 March 2013, this course aimed to provide INSEEC Masters students in International Business with an objective overview of Africa's economic landscape, as well as hands-on highlights ...

Delivered on 4-5 March 2013, this course aimed to provide INSEEC Masters students in International Business with an objective overview of Africa's economic landscape, as well as hands-on highlights and advice on how to successfully engage in business on the African markets.

Africa is not a one-side story. The specificities of the African economies and markets require going through a deep analysis and looking at emerging trends on the Continent.

That is the subject of this presentation, which notably considers the diversity of the African Markets as well as the specific cultural factors underpinning the management of business on the Continent.

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African Markets INSEEC Masters 2014 Presentation Transcript

  • 1. African Markets! INSEEC Business School Masters IBM
 4 - 5 March 2014 Stephane EBOKO
  • 2. Objectives / Expected Outputs ! • Provide an overview of the Continent’s business opportunities / challenges • Insights on African markets and emerging trends • Share objective and practical advice on how to successfully conduct business in the region • Highlight key differences between management and corporate structures in Africa & the West • Economic relationships with other global economic regions should be highlighted • Outline skills needed for successful management in the African context brief
  • 3. outlineDAY 1! •Historic conceptions, evolving perceptions / Tag cloud of images, attitudes and perceptions about the continent! ! •African Landscape / macroeconomic facts, data and trends - continental & regional successes and challenges! ! •New dynamics and influences / Africa in the global ecosystem and collaboration with other regions, Africa’s trade partners, trade regulatory frameworks, intra Africa trade & regional integration, urbanization, new consumers! ! •Emerging Actors / governments, AU, private sector, African MNCs, SMEs, incl. rise of social businesses, civil society, diaspora, WTO! ! •Leading and managing people and networks in sub-Saharan Africa! ! •Investment, financing and risk mitigation / Financial markets, PE, Role of DFIs, Global Partnerships, PPPs, Impact Investing, remittances and new trend: Diaspora crowdfunding! ! DAY 2! •Distribution channels, Manufacturing & Sourcing! ! •Markets focus / Infrastructure, Technology (tech hubs, Innovation, S&T), Mining/natural resources, Energy, Services, Tourism, Real estate, Health! ! •Alternative markets / The 3Fs: Food & agribusiness, Fashion & design, Film & entertainment! ! •20 tips on doing business in Africa! ! •Case Study / Mama Fresh
  • 4. introduction
  • 5. Historic conceptions, evolving perceptions
  • 6. 2000 2011 20132012 Historic conceptions, evolving perceptions
  • 7. Historic conceptions, evolving perceptions
  • 8. African Economic Landscape
  • 9. African Economic Landscape
  • 10. New dynamics and influences - Africa’s growth is supported by domestic activity while exports remain subdued! - West Africa will be the fastest growing region in 2013/14! - Despite some easing, commodity prices remain favorable for resource-rich countries! - Rapid urban expansion has changed the continent’s demographic landscape.! - The single-largest business opportunity in Africa will be its rising consumer market.
  • 11. Emerging Actors
  • 12. Leading and managing people and networks
  • 13. Africa’s Regional Economic Communities Economic Community of West African States (ECOWAS) ! Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, Gambia, Ghana, Guinea-Bissau, Liberia, Mali, Nigeria, Senegal, Sierra Leone, Togo ! Economic Community of Central African States (ECCAS) ! Angola, Burundi, Cameroon, Central African Republic, Chad, Democratic Republic of the Congo, Equatorial Guinea, Gabon, Republic of the Congo, Rwanda, São Tome & Principe ! Southern African Development Community (SADC) ! Angola, Botswana, Democratic Republic of the Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia, Zimbabwe ! Common Market for Eastern and Southern Africa (COMESA) ! Burundi, Comoros, Democratic Republic of the Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia, Zimbabwe ! Intergovernmental Authority on Development (IGAD) ! Djibouti, Ethiopia, Kenya, Somalia, Sudan, Uganda ! East African Community (EAC) ! Burundi, Kenya, Rwanda, Tanzania, Uganda
  • 14. Capitalism 2.0
  • 15. Investment, financing and risk mitigation
  • 16. Distribution channels, Manufacturing & Sourcing
  • 17. Markets focus • Agriculture! • Services! • Infrastructure! • Technology (tech hubs, Innovation, S&T)! • Mining and other natural resources! • Energy! • Tourism! • Real estate! • Health
  • 18. Alternative markets African innovations CardioPad Mellowcabs Malaria pf/PAN (pLDH) Test Kit!
  • 19. Alternative markets 3Fs: Food / Fashion / Film
  • 20. 1. ALWAYS FOLLOW DUE PROCESS! ! 2. ALWAYS HAVE COUNTRY STRATEGIES! ! 3. FIND LOCAL PARTNERS! ! 4. BUILD STRONG RELATIONSHIPS! ! 5. WORK WITH A LOCAL COMPANY! ! 6. DO DEEP DUE DILIGENCE! ! 7. UNDERSTAND THE CULTURAL NUANCES OF LOCAL MANAGEMENT! ! 8. BE AWARE OF TRADEMARK ISSUES.! ! 9. UNDERSTAND AND RESPECT LOCAL PROTOCOLS! ! 10. STRONG GOVERNANCE AND CONTROL STRUCTURES! ! 11. PLAN PROPERLY AT THE BEGINNING 23 tips on doing business in Africa
  • 21. 12. GIVE PROPER SUPPORT TO LOCAL PARTNERS! ! 13. REMEMBER: AFRICAN CONSUMERS ARE HIGHLY ASPIRATIONAL! ! 14. ACCEPT INVITATIONS! ! 15. CASH IS STILL KING! ! 16. BE AWARE OF ETHNIC BREAKDOWN! ! 17. COST OF AFRICAN ASSETS IS RISING! ! 18. BE WARY OF DOING LARGE DEALS CLOSE TO ELECTION TIME! ! 19. ONCE YOU HAVE AGREED ON A DEAL, MOVE QUICKLY! ! 20. IF ENGAGING WITH CEO: STAY AT CEO LEVEL! ! 21. BE HUMBLE AND RESPECTFUL. 23 tips on doing business in Africa
  • 22. 23 tips on doing business in Africa 22. BECOME A TRISECTOR ATHLETE! The world's most pressing and complex issues increasingly require collaboration between the business, government, and non-profit sectors to create sustainable outcomes. Thus, a new type of leadership is needed - leaders with a mindset, set of experiences and network across the three sectors. 23. GIVE IT A TRY!!
  • 23. Mama Fresh Injera P.l.c. is an Ethiopian business enterprise established in 2003 to offer the rest of the world a unique, indigenous and healthy agricultural food product - locally termed as “INJERA”- that looks like a pancake and is made of cereal known as “TEFF”. ! Mama Fresh Injera company is family business and is a uniquely specialized in processing of the ingredient ‘TEFF’ to a consumable food “INJERA” which is a specialty food item that attracted the attention of local and international consumers. ! Mama Fresh is currently the major injera exporter in Ethiopia, with his shipment of the Ethiopian staple bread to markets overseas significantly rising by the day, especially over the last three months. The daily consumption of Injera in Addis Ababa only is 4 million units. ! Enjoying “unreserved” support from the government for turning an otherwise small-scale business into an industry-level industry over a decade, his weekly export of injera has now hit around 9,000 pieces, with a plan to double the shipment in the coming months when launching an injera manufacturing plant. Case Study / Mama Fresh Background
  • 24. ! ! 1. Increase share of global markets: The family aims to boost the share of export from 50% to 80% of the total production by end of 2014 to increase its margins. ! 2. Expanding into key regional and global markets: East African Community, France, China and Mexico, hence increasing monthly export sales from $75,000 to $120,000 by end of 2015. ! 3. Internal growth: Raise the number of employees from 135 to 215 of which 175 of them female and 40 male. Reaching 400 employees (with the same gender ratio) by 2020. ! 4. Production capacity: The company has a long term plan to increase its daily production from 15,000 to 30,000 injera per day of which 80 % will be exported. ! 5. Diversification: as part of a diversification strategy, Mama is exploring commencing Mama Fresh Water, a spring water sourced in the Awassa region. ! The company will work with Consultants to develop a growth strategy and an action plan to achieve the above-mentioned goals. ! This strategy will be presented to the members of an American angel investment network which is considering investing into Mama Fresh Injera, Ethiopia's largest commercial manufacturer and exporter of fresh-baked injera. ! The investment would finance the growth strategy. Case Study / Mama Fresh Short and mid-term objectives:
  • 25. Case Study / Mama Fresh You are hired by the Founder of Mama Fresh, as the management consulting team. ! Based on your business & management skills, your knowledge of local and global Markets as well as well as your personal due diligence, you are requested to develop a business plan to support mama fresh’s growth in the next 5 years, that will bring both financial return and positive impact in the community. ! You are required to look at areas like sourcing, production, financing, markets development, pricing, promotion and distribution channels. ! You will be assessed on your capacity to propose specific recommendations, supported by data, arguments and personal analysis. ! Present your answers in a structured and practical way. ! Work in groups of 4 - 5. Questions
  • 26. to conclude 2000 2011 20132012