The document discusses the challenges facing fast moving consumer goods companies expanding to Africa. It notes that Africa consists of 53 diverse countries and treating it as a single market will not work. Companies must understand the unique cultures and consumers of the different African regions to successfully adapt their products. The author aims to specialize in the African consumer goods sector and help companies overcome this challenge by providing knowledge and experience gained from their work in Southern Africa.

1. The challenge for fast moving consumer goods
companies expanding to Africa
Essay H: What do you believe are the greatest challenges facing the sector or industry you would like to
specialize in at IE? What role do you hope to be able to play in this sector or industry in the medium term?
Africa is not one country

2. Contents 1. Personal background
2. Africa is the centre of growth for the next decade
3. The greatest challenge of capitalising on the opportunity
4. Africa is not one country
5. Dissect the African consumer market
6. Characteristics of the African consumer
7. My role in the medium term

3. • I am a South African with a strong African
work experience
• I have travelled in eight of the 53 countries in Africa
and worked in Zambia since 2013. I am currently the
financial manager fulfilling the role of CFO for
Agrivision Africa
• Since the CEO resigned I have been entrusted with some
of the usual CEO tasks until a new CEO is appointed
• Through the acquisition of Mpongwe Milling I have come
into extensive contact with the African consumer
• I aim to specialise in fast moving consumer goods with
a focus on the African markets
My background

4. • In January 2013 I was appointed as the financial manager of
Agrivision Africa (‘formerly know as Chayton Africa’)
and started to work extensively in Zambia
• I want to do a MBA at IE Madrid in order to bridge the gap
from being a financial manager or CFO to a more operational
role and becoming a CEO and an African business leader
• European investment in Africa will continue to rise but I
believe that there is a lack of knowledge and understanding of
who the African consumer is
• After successfully completing my MBA at IE Madrid I want to
work in the business development division of a major
consumer goods company with aspirations to expand into
Africa
My career goals

5. Africa is the centre
of growth for the
next decade.

6. The African economy
is expected to grow
by more than
7 percent between
2014 and 2019.
• Africa is expected to grow twice as
fast as developed economies
around the world
• Africa is a magnet that will attract 50%
for new investment from European
companies
• Businesses around the world are looking to
Africa for growth opportunities
• The single largest business opportunity in
Africa will be its rising consumer market,
according to McKinsey and Company

7. World regions’ actual
and forecasted
GDP compound
annual growth.
Source: World Economic Outlook Database, Deloitte analysis

8. The greatest challenge for
consumer goods companies
in Africa is understanding us.

9. • Consumer goods companies entering
the Africa market don’t understand
the customer
• They don’t understand that Africa is
not one country and that African people and
cultures needs to be treated as unique
markets
• Companies don’t take the necessary care to
adapt their product for the specific market
that they are trying to serve
Companies don’t
understand who the
African consumer is
and treat them the
same as Western
consumers.

10. Africa is not
one country.

11. • Africa is a large and diverse continent with
53 countries and an estimate 1500 to 2000
languages and 3000 ethnic groups
• Countries in Africa grow at very different
rates and are at various stages of
development
• One size fits all business plans or products
will not meet the need of African consumers
• Business needs to understand its
target market in order to make the
necessary returns on investments
Africa consist of
53 different countries

12. Source: http://kai.subblue.com/images/True-Size-of-Africa-kk-v3.pdf
The true size
of Africa

13. Dissecting the
African market.

14. Africa can be widely divided into languages that
was imported from Europe:
But even this division is only scratching the
surface of how diverse consumer markets in
Africa are.
Area Language
North Africa Arabaphone Africa
West and Central Africa Francophone Africa
East Africa Swahili
Southern Africa English and Portuguese
By dividing Africa
into separate
regions it becomes
easier to identify
with the people
and produce
product that
will meet the
consumer needs.

15. Source: http://2012books.lardbucket.org/books/regional-
geography-of-the-world-globalization-people-and-
places/section_10/3143975c4dcf5ad0663ca8cbca8dee63.jpg
Africa arranged by
language.

16. Characteristics of
the African consumer.

17. The African consumer
is younger than most
of the world’s
population and
technologically savvy.
• The African middle class will grow from
355m in 2010 to 1.1bn consumers in
2060
• Young Africans will be the majority of
these citizens. Currently there are 205m
Africans between the age of 15 – 24 and
this will increase to 302m by 2030
• Mobile penetration rate in Africa will
reach 84% by 2015 and increase to
97% by 2030
• Majority of African access the internet
exclusively through mobile devices
• Consumer goods companies must
engage the young African consumer
through technology

18. https://aviatnetworks.files.wordpress.com/2012/06/africa_mobile_pen
etration_rates.jpg

19. My role in the
medium term.

20. There are 53
countries in
Africa. The
continent cannot
be treated as
one country.
• In 2014 Chayton Africa bought Mpongwe Milling, a fast
moving staple food company in Kitwe, Zambia.
• Upon commencement of my MBA I will have 3 year of
experience in the Southern African consumer market
and the knowledge to implement new marketing and
distribution strategies.
• Upon completing my MBA I aim to work for the new
business development division of a European consumer
goods company with ambitions to expand into Africa.
• I can add significant experience and knowledge to any
consumer goods company that needs to understand the
African consumer.

21. • The single-largest business opportunity in
Africa is the rising consumer market.
• Africa is not one country and businesses
need to understand the African consumer.
• I can add significant experience and
knowledge to any consumer goods
company with a need to understand the
African consumer.
Conclusion