African Market Penetration

Getting your consumer products into Africa is not easy. There are a number of very important considerations and the basic rule "one size does not fit all" applies.

The African markets certainly continues to offer companies an opportunity for long term sustainable growth.

The African market is a complex one with vast differences across countries, regions - North, South, East & West and the people across the continent in terms of their culture, aspirations, perceptions, needs and wants . No company can be successful in penetrating this market if they do not understand the intricacies of each of these, often trying to match their existing product range into an African country with very little success.

Markets need to be analysed, route to market needs to be understood and the consumer buying behaviour of each country needs to be defined and only then, product can be developed for that particular market.

One size does not fit all.

More about Africa:

The middle class estimated at 350 million in 2018 continues to grow at a very rapid rate.

There are certain barriers to entry which getting into this market difficult, including; lack of understanding about the market and how it operates, market information, economic issues, availability of finance or currency, communication in different languages, complexities of channels of distribution (route to market), cultural difference and more.

Channels of Distribution (route to market)

Understanding the route to market can be one of the most difficult areas of distribution in Africa. The starting point is to partner with a suitable distribution company who understands the channels and has the ability to reach them. Coverage and numeric distribution are key to gaining long term sustainable growth. Then you need to know through which channels you want to take your products. Do you want your products to retail through modern trade or traditional trade.

To increase the chances of being successful, it is better to use a company like OpenBox who have the experience, knowledge and established relationships.

Contact us and we will help you.

www.openbox-es.com

 

The most prosperous African countries

Ranking of the most prosperous African countries:
1-South Africa
2-Botswana
3-Morocco
4-Namibia
5-Algeria
6-Tunisia
7-Senegal
8-Rwanda
9-Ghana
10- Burkina Faso
11-Kenya
12-Benin
13 Egypt
14-Mali
15-Zambia
16-Niger
17-Uganda
18-Cameroon
19-Tanzania
20-Ivory Coast
21-Mozambique
22-Djibouti
23-Mauritania
24 Malawi
25-Sierra Leone
26-Nigeria
27-Ethiopia
28-Republic of the Congo
29-Zimbabwe
30-Togo
Guinea-31
32-Liberia
33-Angola
34 Sudan
35-RD Congo
36-Burundi
37-Chad
38-Central

Based on 89 factors grouped into eight main categories: economics, presence of entrepreneurial opportunities, governance, education, health, security, personal freedom and social capital.

Source: "Africa Prosperity Report 2016" by Legatum Institute, 2016

Legatum Institute points out that Rwanda has made the biggest progress compared to the previous edition of the classification thanks in particular to the reforms launched in the field of strengthening the rule of law and the fight against corruption.

Senegal and Burkina Faso also made good progress as a result of improved performance in the areas of personal freedom and governance.