The document discusses the opportunities for local business and media in Africa from the growing consumer class and interest in local sports content. It notes the rising incomes and numbers of Africa's middle class consumers, the expanding digital media landscape, and appetite for locally produced content. Developing coverage of local sports provides opportunities to engage fans, viewers, and consumers, especially as more African athletes find success internationally raising local interest in domestic sporting events and leagues.

1. CHANGIN THE GAME:
Local Business. Local Media. Local
Sport
AITEC BFMA Presentation June 2013
Gary Rathbone

2. LOCAL BUSINESS
Economic Development
Copyright Gary Rathbone
2013

3. LOCAL BUSINESS
Economic Development
Copyright Gary Rathbone
2013

4. LOCAL BUSINESS
Economic Development
Copyright Gary Rathbone
2013

5. LOCAL BUSINESS
An Emerging Consumer Class
 The continent was home to more the 1 billion consumers in 2010 and this figure
is projected to reach 1.3bn by 2030.
 Consumer expenditure is also mushrooming: it was worth $600bn in 2010,
representing 8% of consumer spending in the emerging markets. It will be worth as
much as $1 trillion by 2020
The Rise and Rise of the African Consumer Market - African Business Magazine,
March 2012
 The number of middle class Africans has tripled over the past 30 years to more than
313 million, or more than 34% of the continent’s population.
 The reasons for the increase in size and purchasing power of the African middle
class include strong economic growth and a move towards a stable, salaried job
culture and away from traditional agricultural activities.
The Middle of the Pyramid, African Development Bank Report, April, 2011
Copyright Gary Rathbone
2013

6. LOCAL MEDIA
Copyright Gary Rathbone
2013
Updated Internet and mobile country info – Key Anglophone African territories
Country Population Urban Pop. Mobile Internet Facebook TV Households
Botswana 2 100 000 61% 164% 167 200 215 000 140 000
Ethiopia 93 816 000 17% 20% 622 000 537 000 N/A
Ghana 25 242 000 51% 80.5% 2 500 000 1 300 000 3 000 000
Kenya 43 013 000 22% 61.63% 10 500 000 1 400 000 4 000 000
Malawi 16 320 000 20% 30% 2 716 400 130 000 N/A
Namibia 2 170 000 40% 109% 150 000 154 000 100 000
Nigeria 170 000 000 50% 63% 45 000 000 4 135 000 20 000 000
Rwanda 11 700 000 19% 55% 450 000 135 000 N/A
South Africa 49 000 000 62% 127% 5 100 000 4 605 000 11 100 000
Tanzania 43 600 000 26% 62% 4 930 000 465 000 1 500 000
Sudan 36 787 000 40% 49% 4 200 000 N/A 2 400 000
Uganda 35 870 000 13% 55% 4 180 000 400 000 1 000 000
Zambia 14 310 000 36% 51% 883 000 217 500 N/A
Zimbabwe 12 620 000 40% 72% 2 100 000 1 060 000 N/A

7. LOCAL MEDIA
The Changing Media Landscape
 70% of Africans have experienced the internet for the first time on their handset: it’s the norm
Source: Global mobile statistics 2012.
 Activities such as blogging and social networking are fast gaining momentum as over half of those in
Kenya (55%) and Tanzania (50%) have written their own blog or forum entry, compared to only 32% in
the US
Source: Digital Life, a global research project into people’s online activities and behavior.
 Free to Air analogue terrestrial broadcast and satellite still dominate the African TV market, but
new technologies such as online TV, programme streaming, VoD, Mobile TV, cable-fibre, MMDS
and IPTV, coupled with the imminent switch to digital (DTT and DTV) means that this emerging
broadcasting market will undergo great changes and increased competition in the years to come
Source: Balancing Act African Media Report 2012
 A third of US sports fans use smartphones to access sports content, and of those fans, 36%
access sports content via their mobile device at least once per day. Also, a quarter of US sports
fans are now using social networking platforms to follow sports.
Source: Sporting News Media's third annual survey into US sports media
Copyright Gary Rathbone
2013

8. LOCAL MEDIA
An Appetite For Local Content
Content generation with locally produced, relevant programming will take
the TV industry by storm. The two-hour slot post the evening news, which is
currently ruled by international soaps dubbed into local languages, shall be
replaced with local programming.
Nandkishor Buty, CEO of Ogilvy & Mather Africa
Nothing resonates with audiences and advertiser like sport – and nothing
has the potential to grow local audience like local sport.
Gary Rathbone, Head of Sport, Zuku
Copyright Gary Rathbone
2013

9. LOCAL SPORT
Reasons to be Optimistic
 The environment around local sport has changed dramatically in recent
years:
 Better facilities
 Better administration
 Better talent and talent development
 The success of international sport in attracting a global audience has
helped raise awareness for similar sporting codes at local level
 More African sportsmen and women are achieving success at an
international level. This in turn is raising awareness at a local level
Copyright Gary Rathbone
2012

10. LOCAL SPORT
A Range of Sporting Opportunities
 It’s time to consider the full range of local sporting opportunities
 Even smaller sports with a niche fan base can have great value to an
advertiser if that base is the target for his product
 We need to acknowledge the complexities that exist among sports fans
in each market. It is not only about football…
 Bringing niche local sports into the world of local television and media is
a simpler and more cost effective way of getting sports content that can
resonate with your market.
If you build it…they will come!
Kevin Costner in ‘Field of Dreams’
Copyright Gary Rathbone
2012

11. SUMMARY
Copyright Gary Rathbone
2012
INCREASING NEED FOR MEDIA TO HAVE MORE SPORTS CONTENT
MORE MONEY
AVAILABLE FOR
MEDIA
SPONSORSHIP OF
LOCAL SPORT
MORE RESOURCES
AVAILABLE TO
DEVELOP
COVERAGE OF
LOCAL SPORT
MORE COVERAGE OF
LOCAL SPORT MEANS
A RISE IN LOCAL
CONSUMER
AWARENESS
INCREASE IN FANS,
VIEWERS AMONG
LOCAL CONSUMERS.
INCREASING NEED FOR BUSINESS TO REACH GROWING
CONSUMER MARKET