
2 May, 2016 - 06:04
A strong complement of global brands yearn for a juicy piece of the African pie says Marthinus van Loggerenberg, Senior Strategic Planner at FCB, Cape Town. Nigeria, Ghana, Kenya, Ethiopia, Zambia and the DRC are feverously pursued based on their lucrative economic growth. The saying goes Africa is tough country'. Well, this multi-faceted continent certainly reveals more nuances than ever imagined.
Dealing with government regulation and protectionism pose a major challenge in many countries. A strong complement will refuse your product if you are not willing to invest, for example, by building a manufacturing plant, like in Nigeria. This makes Nigeria a high risk investment whereas Zambia, which does not require such investment, is currently regarded as low risk and high growth.
A number of multinational brands seem to be tracking well. Nestl and Unilever, for instance, invested in manufacturing plants and local partnerships across Africa and entrenched their presence to grow from strength to strength. Unilever, for example, leveraging from the South African Department of Trade and Industry's multibillion-rand tax allowance incentive scheme, recently opened the first phase of a R600 million investment: its first ice cream factory in Africa.
Coca Cola went in right from the start to strategically own Africa from a brand presence point of view. It offered professional caf name branding in exchange for providing dedicated Coca Cola fridges with rigid stock-refilling as part of a very intense distribution strategy. Shoprite, for instance, pioneered a change in shopping behaviour by introducing trolley shopping in many countries. This was followed by an influx of open-air malls' popping up around Shoprite stores that fuelled even larger strides in economic development.
Going into Africa is not without its challenges. Brands like KFC, for instance, had to reengineer their supply chain as countries like Nigeria and Kenya ban chicken imports. KFC is consistently finding creative solutions around the poor quality of local production. One of the key success factors (that is much easier said than done) is securing a proper local distribution system and trusted local partners that buy into the value-system of the brand and operational efficiency-criteria of the business.
Brands that truly understand the market composition and behaviour are the brands that win. For Toyota everything keeps going right as evidenced by its clear market leadership in Africa. Critical to its success was appreciating that Africa is a second hand car market. In Nigeria, the largest car market in Africa, the top four cars searched for online are all Toyota models - with 67% of Toyota owners indicating that they will only consider Toyota as their next car to purchase. Here you will find more than 50 Toyota models on the road, many sporting female names, like the Nadia, Carina, Celica or Dyna.
Perception of brand status is a complex art and science in Africa. Blackberry is still regarded as a status symbol in most of Africa. A recent mobile phone study conducted by Johannesburg based World Wide Worx and Geopoll revealed that BlackBerry, which has held steady at a six percent penetration for current and previous phones, is expected to rise to 16 percent. This is in direct contrast to current international trends. It launched in the African market through companies that took out contracts for their executives. But as new models were introduced, the old BlackBerrys have entered the mass market. They are clearly still riding the wave of a well-planned inception strategy.
Perception of brand-status and quality also briefly deserves attention. In Southern Africa one would associate German engineering and craftsmanship with good quality. It's not necessarily the case in the rest of Africa. Japanese goods have made a deep impression on West Africans and in East Africa Indian products demand the biggest respect. The latter may well be true because of geographic location, but one thing that should not be disregarded is colonial heritage. French-heritage countries like Cameroun, The DRC, Madagascar and the Ivory Coast still show a strong French-brand based influence on par with European-like perceptions of quality.
Online shopping deserves a mention. In higher-ranked GDP countries like Nigeria it is skyrocketing. PayPal research conducted in February 2015 indicated that 65% of Nigeria's over 50 million internet users already shop online, with 24% more expected to do so in future. This is certainly shopping behaviour suited to Africa's leading economy and something in general that multinationals should not disregard.
Doing good business in Africa ultimately boils down to four things:
1. Don't underestimate the power of relationships i.e. value relationships more than you value monetary business transactions. Never have a sense of arrogance. Value a 360 degree stakeholder approach.
2. Don't underestimate the people; their staunch loyalty to brands as well as the power of their pocket if you manage to win their hearts. At the same time, don't disregard local talent or rather, growing local talent as in many countries it is expected. Invest in able middle management as they are not only responsible for daily operations, but are also the future of your business.
3. Don't try and understand Africa from behind a desk. You will only get the story' if you immerse yourself in the daily on-the-ground trader's markets. The infamous Ojuwoye market in Mushin, Lagos is a perfect example, if one is talking an FMCG brand for instance. On the internet there are mere vague glimpses - most filmed in secret with a cell-phone, with little to no data available; especially on your brand. Get in and observe. Engage. Talk to traders and customers to understand intricate
Most recent headlines
13/12/2025
Powering Client Growth: Horizon Deepens Nielsen Partnership, Enabling More Effic...
13/12/2025
In a move that will help it offer more flexible and less costly programming options, YouTube TV has announced that it will be launching YouTube TV Plans with mo...
13/12/2025
SINGAPORE Magna Systems has designed, built and completed what is believed to be the first full UHD and IP-based OB truck in Southeast Asia for a Singapore medi...
12/12/2025
SVG Summit 2025 Preview: Everything You Need to Know for Next Week's Big Sho...
12/12/2025
Hailey Gates at the Atropia premiere (photo by George Pimentel / Shutterstock for Sundance Film Festival)...
12/12/2025
Last month, Spotify announced a new collaboration with the ATP Tour, the global governing body of men's professional tennis, aimed at bringing the next gene...
12/12/2025
CONWAY, Ark. In a notable example of how the elimination of Federal federal funding is forcing public stations to make massive cuts and changes in the way they...
12/12/2025
Wisycom and DPA Microphones announce the appointment of Ren Moerch as Group Product Director, Wireless, a strategic leadership role that will guide the combine...
12/12/2025
SMPTE , the home of media professionals, technologists, and engineers, in conjuncture with the European Broadcasting Union (EBU) and the Entertainment Technolog...
12/12/2025
Keepit, the vendor-independent, cloud-native data protection provider, today announced a strategic go-to-market relationship in Poland with Ingram Micro, a lead...
12/12/2025
Atomos announced the immediate availability of a new firmware update for its Ninja TX GO and Ninja TX monitor-recorders, unlocking Open Gate 48P RAW recording w...
12/12/2025
Professional Wireless Systems (PWS) once again played a critical role in delivering flawless wireless coordination and support at the 2025 Latin Grammy Awards a...
12/12/2025
The Alliance for IP Media Solutions (AIMS), together with the Video Services Forum (VSF), the Advanced Media Workflow Association (AMWA) and the European Broadc...
12/12/2025
DHD audio will demonstrate the latest additions to its range of digital audio production solutions on Booth 321 in Hall B6 at Hamburg Open 2026. The show will b...
12/12/2025
Chaos today announces the release of V-Ray for Blender, update 2, bringing its award-winning rendering technology to even more Blender users by adding support f...
12/12/2025
Lighting specialist UltraLEDs has launched Precision LED Tape, a high-CRI lighting solution designed specifically for professional film, TV, and studio use.
P...
12/12/2025
Zixi, the Emmy Award-winning leader in live broadcast-quality video over IP, today announced that Roi Sasson has joined the company as Vice President, Engineer...
12/12/2025
BitFire (bitfire.tv), the leader in software-defined live production and IP transmission, today announced a strategic partnership with Appear, a leader in high-...
12/12/2025
LOS ANGELES The Hollywood Professional Association (HPA) today said futurist Robert Tercek, creative technologist Jessie Hughes from Leonardo.AI and Emmy-winnin...
12/12/2025
HUDSON, Mass. BitFire and Appear have struck a strategic partnership aimed at offering broadcasters, sports leagues and streaming platforms a faster, more flexi...
12/12/2025
The broadcast industry is evolving faster than ever. #IPWorkflows #remoteproduction, and next-gen audio systems are reshaping how teams design, deliver, and sca...
12/12/2025
LOS ANGELES The payroll and production accounting platform Wrapbook has announced the acquisition of Cinapse, a modern scheduling platform for film and televisi...
12/12/2025
DEHLI Ross Video has announced that it is expanding and restructuring its commercial and technical teams in the South Asian Association for Regional Cooperation...
12/12/2025
LONDON Following the success of its UK launch in January 2025, Rise AV, the global not-for-profit initiative dedicated to supporting and advancing women in the ...
12/12/2025
SAN FRANCISCO Ad-supported streaming service Tubi next week will launch Matter Casting, a new casting standard that will enable seamless mobile-to-TV viewing di...
12/12/2025
LOS ANGELES The Hollywood Professional Association (HPA) today said futurist Robert Tercek, creative technologist Jessie Hughes from Leonardo.AI and Emmy-winnin...
12/12/2025
Friday 12 December 2025
Ted is back! Seth MacFarlane's live-action comedic ...
12/12/2025
In Las Vegas's T-Mobile Arena, fans of the Golden Knights are getting more than just hockey - they're getting a taste of the future. ADAM, a robot devel...
12/12/2025
Uachtar n na h ireann, Catherine Connolly visited RT Raidi na Gaeltachta's...
12/12/2025
Ireland AM host Eric Roberts has been revealed as the sixth contestant taking to...
12/12/2025
Scripps Research team pioneers an efficient way to stereoselectively add fluorine to drug-like molecules A new method uses a novel catalyst and inexpensive fluo...
11/12/2025
Thomson and the Center for News, Technology and Innovation (CNTI) convened a two-day workshop in Sarajevo bringing together more than 35 journalists, editors, p...
11/12/2025
ESPN's Aims for Spectacular With Heisman Trophy ShowEvent firsts include 1080p HDR production airing on both national broadcast and cableBy Dan Daley, Audio...
11/12/2025
SVG Students To Watch: Frankie Patton, University of ColoradoThe 2025 grad is hitting the ground running as a PA on national broadcastsBy Brandon Costa, Directo...
11/12/2025
SVG Summit 2025 Technology Exhibits Preview, Part 3By SVG Staff
Thursday, December 11, 2025 - 7:24 am
Print This Story | Subscribe
Story Highlights
The 2...
11/12/2025
SVG Sit-Down: What Makes Gen Z, X, and Y Fans Tick? Dave Gavant of WSC Sports Go...
11/12/2025
SVG Summit 2025 Preview: 5G, MXL, Spectrum Loss, and Outerspace on Tap for Tues...
11/12/2025
2025 Sports Broadcasting Hall of Fame: David Levy, Turner Titan and Master of Al...
11/12/2025
SVG Launches Follow the Money' Podcast: Go Inside the Sports Media Biz with...
11/12/2025
A Deep Dive Inside Game Creek Video's Bird and Magic Mobile Units, Home to A...
11/12/2025
How Sound Effects for Monsters Funday Football' Emulated the Sonic Soul of ...
11/12/2025
SVG New Sponsor Spotlight: CSP Mobile Productions' Len Chase on Upgrading Tr...
11/12/2025
Having the right song soundtrack your moves can make all the difference when gam...
11/12/2025
It's been a big year for Taylor Swift. Her highly anticipated album The Life...
11/12/2025
New satellites for the SDA Tranche 1 Tracking program in production at L3Harris&...
11/12/2025
The Meadowlands system, a compact and mobile version of the CCS, uses ground-based radio frequency units to disrupt satellite communications....
11/12/2025
The L3Harris demonstration united tactical communications devices, counter-UAS c...
11/12/2025
Throughout 2025, L3Harris delivered innovative solutions to U.S. and allied warfighters across every domain.
With an unrelenting commitment to excellence, our...
11/12/2025
A Majority of the World's Population (51%) Identify As Soccer Fans
The 2025 MLB postseason notched 58.2 billion viewing minutes, up +24% from the prior y...
11/12/2025
WALTHAM, Mass. Video-over-IP software provider Zixi said Roi Sasson has joined the company as vice president, engineering....