's 2014 06 UTILIT-EASERS


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Utilitarian brands that are easing the lives of Africans by saving them time, putting them in control, and enabling consumer independence. These brands are ultimately bridging the gap between basic infrastructure and the burgeoning expectations of citizens across the continent.

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  1. 1. UTILIT-EASERS How utilitarian brands are easing the strain of everyday life in Africa. Africa TREND BULLETIN June 2014
  2. 2. Many Africans have had enough! Africans, like their global counterparts, lead busy, busy lives. And the disruptions that occur when basic services don’t work means that many are happy (as well as increasingly able) to spend on products and services that make everyday life faster and easier. Now, they’re looking to innovative brands and entrepreneurs to step up, and start improving local services and systems. And as the continent continues to develop, this desire to engage with such brands – plugged into their localities and equipped with a broader purpose to do good – only intensifies. Rising numbers are unwilling to accept unreliable utilities and lack of basic infrastructure. 2
  3. 3. Almost one in two people in sub-Saharan Africa report having paid a bribe in the last 12 months when interacting with key public institutions and services. THE AFRICAN DEVELOPMENT BANK, MAY 2014 3
  4. 4. UTILIT-EASERS | Utilitarian brands that are easing the lives of Africans by saving them time, putting them in control, and enabling consumer independence. These brands are ultimately bridging the gap between basic infrastructure and the burgeoning expectations of citizens across the continent. DEFINITION 4
  5. 5. Since 2005, a net 8 million people in Africa have moved out of poverty. THE AFRICAN DEVELOPMENT BANK, MAY 2014 5
  6. 6. Three forces are driving UTILIT-EASERS into the mainstream in 2014: Industry, government and archaic institutions just aren’t delivering. Startups and industry giants are finally innovating to meet consumer expectation. Today, everyone aspires to best-in-class products, services and experiences. 1. Increasing dissatisfaction 2. Era of innovation 3. Everyone wants in 6
  7. 7. Consumers are becoming more and more skeptical about the current offerings from big industry, government and archaic institutions. No longer willing to tolerate poor utility services and infrastructure, Africans are expecting brands to step in… And step it up! 1. Increasing dissatisfaction 7
  8. 8. Over half of sub-Saharan Africa respondents believe that their government is largely run by big entities acting in their own best interests, instead of the public good. THE AFRICAN DEVELOPMENT BANK, MAY 2014 8
  9. 9. From start-ups to conglomerates, organizations in Africa are finally realizing that in order to solve local challenges and meet new expectations, they need to innovate. That means new products, business models, service delivery ideas, and more. 2. Era of innovation 9
  10. 10. 76% of Kenyans believe that becoming an entrepreneur is a desirable career choice. OMIDYAR NETWORK, APRIL 2013 10
  11. 11. Today, the less prosperous are aspiring to own the best-in-class products, services and experiences. Even those living in rural areas will at least know about (if not have visited) nearby urban cities where the opportunities for consumption are endless. 3. Everyone wants in 11
  12. 12. In 1980, only 28 percent of Africans lived in cities. Today, 40 percent of the continent’s one billion people do. By 2030, that share is projected to rise to 50 percent, and Africa’s top 18 cities will have a combined spending power of USD 1.3 trillion. MCKINSEY, JUNE 2010 28% 40% 50% 1980 2030NOW 12
  13. 13. We obviously offer much more than monthly Trend Bulletin’s... Your complete trend and innovation solution. Introducing our 2014 Premium Service Find out more 2014 Trend Report Trend Framework Innovation Database Industry Updates Apply Toolkit Monthly Updates 1-page Trend Handouts 1 2 3 4 5 6 7
  14. 14. So let’s have a look at the savviest UTILIT-EASERS and the various ways they are serving African consumers. 14
  15. 15. UTILIT-EASERS AT HOME FEATURED INNOVATIONS Home life for consumers throughout the continent is still as challenging as it gets, with basic utilities unreliable and the regular need to resolve domestic issues, too. 15
  16. 16. The household electrification rate in Africa stands at just 43%, leaving 600 million people without access to electricity. THE AFRICAN DEVELOPMENT BANK, MAY 2014 43% 600 million 16
  17. 17. UTILIT-EASERS AT HOME MTN Nigeria & Nova-Lumos Mobile home power station kit provides alternative solar electricity supply 17
  18. 18. UTILIT-EASERS AT HOME DryBath South African waterless showering aid for those lacking access to clean water 18
  19. 19. UTILIT-EASERS AT HOME FOUFOUMIX Togolese appliance quickly pounds tubers into foufou 19
  20. 20. UTILIT-EASERS AT HOME M-KOPA Solar Kenyan startup provides solar home systems via M-PESA payment plan 20
  21. 21. UTILIT-EASERS OUT & ABOUT FEATURED INNOVATIONS From mobile devices to traffic jams, there’s a pressing need for innovations that make life less stressful, more convenient and safer. 21
  22. 22. Road fatalities on the continent result in 225,000 deaths every year – about one-fifth of total fatalities from road crashes worldwide. THE AFRICAN DEVELOPMENT BANK, MAY 2014 225,000 deaths 22
  23. 23. UTILIT-EASERS OUT & ABOUT CladLight Kenyan smart-jacket reduces motorbike accidents 23
  24. 24. UTILIT-EASERS OUT & ABOUT Rlg Communications Gambian solar-charging phone kiosks introduced in Ghana 24
  25. 25. UTILIT-EASERS OUT & ABOUT Traffic Butter Nigerian traffic information app crowdsources updates 25
  26. 26. UTILIT-EASERS IN EDUCATION FEATURED INNOVATIONS Lack of teachers, schools, textbooks, learning resources – the list goes on: a big challenge for the continent, and a great opportunity for UTILIT-EASERS. 26
  27. 27. Half of all African children reach adolescence without achieving literacy or numeracy. THE AFRICAN DEVELOPMENT BANK, MAY 2014 27
  28. 28. UTILIT-EASERS IN EDUCATION Via Afrika & Breadline Africa Upcycled shipping containers converted into digital learning centers in South Africa 28
  29. 29. UTILIT-EASERS IN EDUCATION Obami South African mobile tutor and student study platform 29
  30. 30. UTILIT-EASERS IN EDUCATION Beni American University Nigeria’s first private online university 30
  31. 31. UTILIT-EASERS IN EDUCATION Qurio Free academic scholarships in return for community knowledge transfer 31
  32. 32. UTILIT-EASERS FOR WORK & PLAY FEATURED INNOVATIONS Tools and services that improve work efficiency and enhance leisure time will forever be in demand. 32
  33. 33. Africa’s current working population of 600 million is set to double by 2040, overtaking both China’s and India’s. THE AFRICAN DEVELOPMENT BANK, MAY 2014 2040NOW 33
  34. 34. UTILIT-EASERS FOR WORK & PLAY Duma Works Kenyan website assists job-hunters 34
  35. 35. UTILIT-EASERS FOR WORK & PLAY Keepod Low-cost ‘operating-system-on-a-stick’ first tested in Nairobi 35
  36. 36. UTILIT-EASERS FOR WORK & PLAY MallforAfrica Shopping platform connects global e-tailers with Nigerians 36
  37. 37. UTILIT-EASERS IN MONEY MATTERS FEATURED INNOVATIONS With the plethora of cash-only, informal markets and unbanked citizens, Africans still can’t get enough of UTILIT-EASERS that tap into mobile banking, cashless transacting and microloaning. 37
  38. 38. The Nigerian Financial Inclusion Strategy (NFIS) aims to reduce the percentage of financially excluded adults in Nigeria from 46.3% to 20% by 2020. CENTRAL BANK OF NIGERIA, JULY 2013 46.3% 20% 38
  39. 39. UTILIT-EASERS IN MONEY MATTERS Nomanini South African POS device announces expansion into Mozambique 39
  40. 40. UTILIT-EASERS IN MONEY MATTERS Lendico Online marketplace allows investors to directly fund the loans of South Africans 40
  41. 41. UTILIT-EASERS IN MONEY MATTERS VeriFone & Teasy Mobile Collaboration sees the expansion of mobile money services in Nigeria 41
  42. 42. UTILIT-EASERS IN SICKNESS & IN HEALTH FEATURED INNOVATIONS Wellness is a fundamental human desire. Across the continent, the race continues to close the gaps between this desire and available solutions. 42
  43. 43. Africans with diabetes: 12.1 million patients today, 24 million by 2030. Africans with cancer: 681,000 new cases in 2008, 1.6 million new cases a year by 2030. Africans needing antiretroviral treatment (for HIV and AIDS): 7.5 million today, 30 million by 2022. WORLD HEALTH ORGANIZATION, AUGUST 2013 24 12.1 7.5 30 1.6 43
  44. 44. UTILIT-EASERS IN SICKNESS & IN HEALTH Wireless Reach Kenyan based technology intervention programme for HIV patients 44
  45. 45. UTILIT-EASERS IN SICKNESS & IN HEALTH Hello Doctor ‘Doctor in your pocket’ app provides health information to South Africans 45
  46. 46. UTILIT-EASERS IN SICKNESS & IN HEALTH WinSenga Ugandan startup launches mobile phone-based fetal heart rate momnitor 46
  47. 47. UTILIT-EASERS IN SICKNESS & IN HEALTH Unjani Clinics South African health organization launches ‘clinics-in-a-box’ 47
  48. 48. NEXT A few things to consider for all you aspiring UTILIT-EASERS... 48
  49. 49. Analyze how your customers interact with you – from start to finish. Think about what you can do to make their lives even easier. What extra benefits will they appreciate? How can you enhance their experiences and make them that little bit more memorable? Scrutinize everything NEXT 49
  50. 50. Of course the masses in Sub-Saharan Africa still don’t earn much. But their expectations are rising, and even their more affluent peers yearn for relevant, effective solutions that are affordable, too. Put all that together, and the market size is undeniable. BOP = TOP NEXT 50
  51. 51. For aspiring foreign UTILIT-EASERS, consider which issues are unique to the local market you’re targeting and think about how you can most pragmatically solve them. Want a hint? See Huawei’s latest phablet (the Ascend Mate 2) that charges other devices. Global brands: Get in! NEXT 51
  52. 52. If you’re a locally successful UTILIT-EASER, why stop there? If M-PESA can target Romania’s unbanked citizens, there’s nothing stopping you from identifying similar markets outside your locality, region, country or even continent! Local brands: Get out! NEXT 52
  53. 53. One of the understated benefits of being a UTILIT-EASER is that it should ensure your new products and services are created sustainably, ethically and responsibly. If this is not the case, then you may need to reconsider your strategy. Be Good NEXT 53
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  55. 55. 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?