2. 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 ;)
AFRICONSUMPTION 2www.trendwatching.com/trends/africonsumption
3. 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
AFRICONSUMPTION 3www.trendwatching.com/trends/africonsumption
4. 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
AFRICONSUMPTION 4www.trendwatching.com/trends/africonsumption
5. 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.
AFRICONSUMPTION 5www.trendwatching.com/trends/africonsumption
6. 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
AFRICONSUMPTION 6www.trendwatching.com/trends/africonsumption
7. 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
AFRICONSUMPTION 7www.trendwatching.com/trends/africonsumption
8. 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
AFRICONSUMPTION 8www.trendwatching.com/trends/africonsumption
9. 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
AFRICONSUMPTION 9www.trendwatching.com/trends/africonsumption
10. 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
AFRICONSUMPTION 10www.trendwatching.com/trends/africonsumption
11. 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
AFRICONSUMPTION 11www.trendwatching.com/trends/africonsumption
12. FEATURED INNOVATIONS
Let’s take a look at the boldest brands targeting African
consumers across the continent and spearheading
AFRICONSUMPTION...
AFRICONSUMPTION 12www.trendwatching.com/trends/africonsumption
13. FEATURED INNOVATIONS
Jovago
African hotel booking platform opens up its
services to Djibouti, Malawi, Zanzibar and
South Sudan
AFRICONSUMPTION 13www.trendwatching.com/trends/africonsumption
14. FEATURED INNOVATIONS
Famous Brands
South African fast food group announces
new outlets in Morocco and Egypt
AFRICONSUMPTION 14www.trendwatching.com/trends/africonsumption
18. FEATURED INNOVATIONS
Pan African University
Pan-African workshop recruits students from
across the continent
AFRICONSUMPTION 18www.trendwatching.com/trends/africonsumption
21. FEATURED INNOVATIONS
Ghana International Bank
West African bank moves into lucrative East
African market
AFRICONSUMPTION 21www.trendwatching.com/trends/africonsumption
22. FEATURED INNOVATIONS
Foschini Group
South African clothing outlet takes on
Ghana’s emerging middle classes
AFRICONSUMPTION 22www.trendwatching.com/trends/africonsumption
23. NEXT
A few pointers on how to make the best of
AFRICONSUMPTION while it’s hot...
AFRICONSUMPTION 23www.trendwatching.com/trends/africonsumption
24. 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
AFRICONSUMPTION 24www.trendwatching.com/trends/africonsumption
25. 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
AFRICONSUMPTION 25www.trendwatching.com/trends/africonsumption
26. 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
AFRICONSUMPTION 26www.trendwatching.com/trends/africonsumption
27. 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
AFRICONSUMPTION 27www.trendwatching.com/trends/africonsumption
28. 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
AFRICONSUMPTION 28www.trendwatching.com/trends/africonsumption
30. 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
paul@trendwatching.com
About us
Established 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.
More at www.trendwatching.com
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?