This is the third and last of the series on the Africa consumer landscape. In the first part we highlighted the challenge in defining the African consumer. While the territory, with over 1.2 billion people presents massive opportunities, can one define the African consumer, given the varied micro and macro factors? How can that happen in a continent with 54 independent nations, varied cultures and practices? In the second part, we looked at some key macro factors that are key catalysts in providing an enabling environment.
However, the macro factors will only push markets to some extent as players within sectors come in place to take advantage of the emerging environment within the continent. As highlighted in the second part, markets within the continent will continue to have their own peculiarities. Consumers’ perspectives will in line also continue to differ. However, some sectors such as tourism, ICT, banking & Finance, agriculture, health, consumer goods, real estate, construction and education will push the intra-Africa view.
As markets are opening up, people are traveling within the continent. The growth rate may not be as high but is growing. It seems like an awakening in finding “lost neighbor”. As road networks improve, there is a noticeable number of cross-border road trips. I recently came across a note for a five nations road trip from Kenya, Tanzania, Malawi, Zambia and Zimbabwe. There is a growing appreciation of not only local but also regional offers, and is no wonder this will extend beyond tourism to other goods and services.
The above is augmented by the increasing appreciation of local cultures. The emergence and growth in popularity of cultural festivals such as Lagos carnival, Seychelles to Lamu festival in Kenya are pointers to an inward looking audience and appreciation of what Africa can offer.
There is a need for different players to exchange notes in order to retain relevance, avoid repetitive offers and keep the audience eager to learn more.
In addition, other sectors have also witnessed the appreciation of local solutions and adoption by consumers. The development and adoption of local solutions has gained tractions as people across the continent seek alternatives. For instance, the approach to banking is shifting from banking halls to Mobile based and agency banking. The use of online has not worked as well compared to other markets. This implies that a global service provider pushing a strategy for online banking may face challenges if such an approach is not customized to the available channels within the continent, and this applies to other sectors as well.
The bottom line is the African consumer is going after solutions customized to the continent and which meet his / her needs. The information age is here with us, and we are in transition once more. A quick look at the historical pattern will help to showcase the Africa consumer is once more in transition stage of new identity.
- Pre-colonial era: People mainly lived within certain areas mainly based on shared language and practices. Hence, the set up was mainly based on tribe, with each having its own way of living, its own traditions and practices.
- Colonization period: Territories were conquered with little consideration of the social setups. In addition to economic interests, there was an introduction to new ways of living, new practices and new cultures. Most practices, including arts were deemed unacceptable. In all, the colonial era subdued the African.
- Post-independent Africa: A lot of governments and even social structures had changed to align to the colonial legacies. For instance, Anglo phone Africa ended up speaking English; Franco phone Africa ended up speaking French. Many economic ties were held with the immediate prior ruling country. Consumption was likewise aligned to the new practices. Most continue to date.
- New era (of the 2000s): This has been about identity. Many countries across the continent continue to rediscover themselves. Individuals / consumers alike are rediscovering themselves, questioning key marketing issues within their context. There is a sifting of information by understanding the follies of adopting foreign ideas, while at the same time customizing and seeking “local”.
How will the consumers adapt to the new economy? What will be the impact on his / her identity? As Intra-Africa cooperation develops, how will this impact the markets? Continuous engagement with the consumers across the continent remains the key to understanding the current and emerging features.
