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AFRICONSUMPTION Pan-African consumerism for the 21st century. AFRICA TREND BULLETIN JULY 2014
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Page 1: trendwatching.com's  AFRICONSUMPTION

AFRICONSUMPTIONPan-African consumerism for the 21st century.

AfricA trend bulletin

JULY 2014

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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 ;)

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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

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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

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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.

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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

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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

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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

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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

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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

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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

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FEATURED INNOVATIONSLet’s take a look at the boldest brands targeting African

consumers across the continent and spearheading AFRICONSUMPTION...

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feAtured innOVAtiOnS

JovagoAfrican hotel booking platform opens up its services to Djibouti, Malawi, Zanzibar and South Sudan

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Famous BrandsSouth African fast food group announces new outlets in Morocco and Egypt

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OjuMauritian startup launches black emoji for Africans and the diaspora

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Choppies EnterprisesBotswanan supermarket targets lower middle classes in other African markets

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JumiaUganda becomes the 6th African market that ‘Nigeria’s Amazon’ enters

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Pan African UniversityPan-African workshop recruits students from across the continent

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iROKO PartnersNollywood online distributor offers DVDs to offline South Africans

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SABMillerBrewery taps into Biafran nostalgia to appeal to Nigerian drinkers

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Ghana International BankWest African bank moves into lucrative East African market

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Foschini GroupSouth African clothing outlet takes on Ghana’s emerging middle classes

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NEXTA few pointers on how to make the best of

AFRICONSUMPTION while it’s hot...

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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

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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

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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

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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

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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

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PAUL BACKMANChief Client [email protected]

ABoUt UsEstablished in 2002, trendwatching.com 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.

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