Page 44 - Strategic Marketing Complete

RESEARCH AFRICA

What’s next in Africa

starts now

In recent years many
companies have in many ways Africa is the
struggled with the ultimate ‘clean-slate’ environment,
accelerating pace of offering many more options
change within africa’s
dynamic landscapes for innovation.
and have been
unable to adequately The challenge of change Ethiopia will account for 30% of
anticipate and evolve Africa’s change and advancement the increase (80-million more
people), while more mature
are occurring at an uneven pace
to capture the inherent across the continent. In some countries like South Africa will
growth opportunities areas, change is even more rapid see their growth slow. Bigger
than outside of Africa or in other
populations mean a larger workforce
on the continent, writes developing markets. Moreover, and more consumers, and many
Ailsa Wingfield. it is broadly acknowledged by multinationals faced with declining
leaders in government, industry and growth in developed markets will
corporates that we need to fast-track increasingly look to SSA for growth.
ompanies have been advancement in some areas for the
blindsided by challenges, overall wellbeing of consumers, Urbanisation
competition and other factors corporates and countries. Urbanisation will be rapid, with
that warranted reassessment within This has positive implications for 2.5 times higher growth than
their own businesses, pointing to a consumers and business, and rural areas, as consumers migrate
growing need to incorporate future- reaffirms the need not to wait until for employment, access to
focused insights and planning. In the major drivers of change have infrastructure/amenities, trade,
the past, change was more linear, played out or reached certain levels, education, health, connectivity and
the world was less connected, but to reconsider business’s roles other social reasons. Cities with
and companies could prosper by in the short, medium and longer more than 1-million inhabitants
understanding their consumer, their term, and be part of shaping this will increase from 37% to 43%
industry and their market. More development. Some of the big (225-million people, +90-million).
recently, however, change comes drivers of change that will influence This will add strain to ageing or
from a multitude of different factors, Sub-Saharan Africa over the next lagging infrastructure and services,
often from outside our industry five-10 years include the following: but will open doors to retailers and
– such as technology, legislation, brands in more densely populated
resources, and innovation. Today population growth areas.
we are more connected to change Nowhere else have we seen the
and more vulnerable to elements population explosion of Africa over Conversely, 42% of urbanites will
from areas that we may not have the past 50 years, due to high birth live in ‘smaller’ urban areas
previously considered influential to rates, lowering mortality rates and (<300 000 inhabitants). These offer
our business. extended life expectancy. Notably, equally substantial opportunities,
the population of Sub-Saharan but often with greater complexity
African societies also often Africa (SSA) will expand to 15% in terms of reach, income ability
“leapfrog” the stages of (1.2-billion) of the global population and product requirements.
development seen in other by 2025 – nearly one in every Understanding environmental and
advancing markets, therefore six people in the world will be in consumer diversity across urban
providing little basis for comparison SSA. This is similar to the increase areas will be necessary to generate
and learning. Yet, we must forecast for Asia, but with an SSA the differentiated and meaningful
understand the overall environment growth rate of 28%, versus that of offerings necessary to tap into the
and consider a variety of different Asia at 7%. varied needs of consumers.
outcomes that businesses might
encounter, and then work to find the The rate of growth will vary from Urban agglomerations
growth opportunities. country to country. Nigeria and With the massive influx into urban

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