1. 1. AFRICONSUMPTION Pan-African consumerism for the 21st century. Africa trend bulletin JULY 2014
  2. 2. 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
  3. 3. 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
  4. 4. 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 AFRICONSUMPTION
  5. 5. 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. AFRICONSUMPTION
  6. 6. 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 AFRICONSUMPTION
  7. 7. 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 AFRICONSUMPTION
  8. 8. 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 AFRICONSUMPTION
  9. 9. 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 AFRICONSUMPTION
  10. 10. 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 AFRICONSUMPTION
  11. 11. 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 AFRICONSUMPTION
  12. 12. FEATURED INNOVATIONS Let’s take a look at the boldest brands targeting African consumers across the continent and spearheading AFRICONSUMPTION... AFRICONSUMPTION
  13. 13. FEATURED INNOVATIONS Jovago African hotel booking platform opens up its services to Djibouti, Malawi, Zanzibar and South Sudan AFRICONSUMPTION
  14. 14. FEATURED INNOVATIONS Famous Brands South African fast food group announces new outlets in Morocco and Egypt AFRICONSUMPTION
  15. 15. FEATURED INNOVATIONS Oju Mauritian startup launches black emoji for Africans and the diaspora AFRICONSUMPTION
  16. 16. FEATURED INNOVATIONS Choppies Enterprises Botswanan supermarket targets lower middle classes in other African markets AFRICONSUMPTION
  17. 17. FEATURED INNOVATIONS Jumia Uganda becomes the 6th African market that ‘Nigeria’s Amazon’ enters AFRICONSUMPTION
  18. 18. FEATURED INNOVATIONS Pan African University Pan-African workshop recruits students from across the continent AFRICONSUMPTION
  19. 19. FEATURED INNOVATIONS iROKO Partners Nollywood online distributor offers DVDs to offline South Africans AFRICONSUMPTION
  20. 20. FEATURED INNOVATIONS SABMiller Brewery taps into Biafran nostalgia to appeal to Nigerian drinkers AFRICONSUMPTION
  21. 21. FEATURED INNOVATIONS Ghana International Bank West African bank moves into lucrative East African market AFRICONSUMPTION
  22. 22. FEATURED INNOVATIONS Foschini Group South African clothing outlet takes on Ghana’s emerging middle classes AFRICONSUMPTION
  23. 23. NEXT A few pointers on how to make the best of AFRICONSUMPTION while it’s hot... AFRICONSUMPTION
  24. 24. 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 AFRICONSUMPTION
  25. 25. 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 AFRICONSUMPTION
  26. 26. 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 AFRICONSUMPTION
  27. 27. 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 AFRICONSUMPTION
  28. 28. 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 AFRICONSUMPTION
  30. 30. 1. Our free Africa Bulletins 2. Subscribe to our Africa Bulletins here. SUBSCRIBE ME » MORE... If you have any comments, suggestions or questions then please do let us know. Just email: PAUL BACKMAN Chief Client Officer About us Established in 2002, is the world’s leading trend firm, scanning the globe for the most promising consumer trends, insights and related hands-on business ideas. Our Premium Service counts many of the world’s leading brands as clients, while our free monthly Trend Briefings go out to over 250,000 subscribers in 180 countries. More at Should you be one of our 1,200+ Premium clients? Our 2014 Premium Service See how Premium will benefit you Now... Enjoyed this Trend Bulletin? Want more?
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.