Leveraging Local Knowledge for Business Success in Africa
You have earmarked the African region as part of your business development strategy to expand business, and explore new markets for your products and services.
The global economy is increasingly more accessible, however, no two continents, countries, people, culture or approach to business is the same.
Global players seeking market insights in Africa
Let’s engage with asking two key questions:
- Which country or countries do you want to expand your business into?
- Which products and services do you think will serve these markets and why?
It is important to understand the landscape of the local market, its culture, and potential customers. This knowledge takes the form of information, insights, experiences, people, relationships, competitors, and unique factors of the particular location.
How to Unearth Local Data for Business in Africa
The process to plan and acquire local knowledge to penetrate the market in Africa should be strategic, well-thought out and systematic.
Identify the people and sources for local knowledge
Determine your specific goals and objectives, and set out a timeline before and upon entry.
Common sources for local information includes:
Research Consultants and Strategic Partners to assist with:
- market entry data
- country statistics
- legal and regulatory requirements
- quantitative and qualitative research approaches
- available insights and studies
- interviews
Media from print to digital formats
- websites, social media
- newspapers
- local radio & TV
- Influencers
Local Customer buying patterns and disposal income
- determine their needs
- the probability of their interest and purchasing ability for your products and services
- pricing that appeals to target customers
Competitors – who they are, what is their market share, and what are their marketing and pricing tactics
Suppliers
- what information can they provide about the local market and competitors
Analyse and adapt local knowledge a
- Review collective data
- Use various tools, including strategic partners and people to interpret the information to make decisions
- Adapt business operations and marketing strategies
- Be flexible for change and the unpredictable
- Determine the value proposition that would appeal to the target customers and build relationships to result in trust and loyalty
- Stay abreast of the micro-economic and macro-economic environments
Learn the local language, business and traditional culture
- Become familiar with local languages and nuances
- Africa is unique with diverse traditions and it is respectful to be aware and know what is acceptable and not
- Learn about the business etiquette in office and out of office
- Establish key ways to build and maintain relationships
- Connect with the right people and influences to make introductions and give valuable insights
Customise Products or Services to the Local Market in Africa
The data and knowledge has been digested. It is inspiring and motivating to move into the African market.
The key success factor is to ensure that your products and services meet the preferences and expectations of the targeted African region. A thorough understanding of the local culture, needs, wants and their perceived value of your business is critical for success.
Customising your products and services for local marketing and consumption is not as simple as it sounds.
One must engage in mindful research, planning, testing, feedback and collaborate with local expertise and businesses.
Adjustments may be required in design, language, packaging, pricing, promotion and distribution. Ensure that the messaging and communication is apt to reflect the target customers culture and language.
A key step for consideration would be to plant roots in the African region from having an office, to factory or warehousing. This provides a foundation to be on the ground and shows commitment to establish and sustain presence of your business products and services.
If you are certain you want to expand your business...
Leveraging Relationships for Business Success in Africa
The power of connections in Africa matters immensely.
Personal interactions is an adamant business practice not to be taken casually. The people and businesses in Africa dress for success and take the time to build trust and establish rapport with business partners.
Harnessing a robust strategy and effort to develop and maintain strong relationships will make or break deals.
This step in equally systematic. To leverage relationships, consider mapping out a Relationship Matrix for the Africa Region/s, and plan to cultivate and nurture them for mutual benefit.
The advantages of relationships in Africa can never be underestimated or underplayed if you want to be a mover and shaker in this dynamic environment.
Building and maintaining relationships in Africa is an investment of time, effort and trust.
Relationships are not just a means to an end. The relationship matrix is dynamic and has be spread from local customers, government, communities, suppliers, distributors, media and every possible channel relevant to your business.
The effect of strong business relationships, along with the information, know-how and network it offers provides a competitive edge for business success in Africa.
Building relationships is a valuable element that can be leveraged on every level to support long-term partnerships for business growth and positive spin-offs for the African region and its stakeholders.
Case Studies of Successful Corporate Relationships in Africa
Unilever’s Africa success lies in adopting a decentralised approach to management. The company empowers local managers to make decisions that are tailored to the local market, which has helped Unilever to establish strong relationships with local suppliers, distributors, and customers. Unilever also invests in sustainability initiatives and has set a goal to make all of its products in Africa sustainable by 2030.
Proctor & Gamble has been successful in Africa by building strong relationships with local distributors and suppliers. Proctor & Gamble approach is to build relationships based on trust and mutual benefit. The company invests in local communities by providing job opportunities and supporting education and healthcare initiatives. Proctor & Gamble also leverages technology to improve its supply chain, enabling the company to quickly respond to market changes and customer needs.
General & Electric has been operating in Africa for over 100 years and has a deep understanding of the local business landscape. General Electric has established partnerships with local businesses and governments to provide solutions for infrastructure, healthcare, and power needs. To build trust and credibility in Africa, General Electric has established local offices and has hired a large number of African employees. The company also invests in local training programs to develop local talent and foster long-term relationships with its African partners.
Leveraging the Knowledge of Innovation in Africa for Business Success
Innovation in Africa is rising.
Businesses need to be in the know of ground-breaking technology and creativity. Leveraging this knowledge can lead to advancements in business growth and to have the competitive edge in the African region.
Knowledge of Some of the Game-Changing Innovations in Africa (2024)
Innovation: KongaTV
Country of origin: Nigeria
Company/organisation/inventor responsible: The Konga Group
Launched in October 2023, Konga TV has arisen from Nigeria and expects to revolutionise online broadcasting and e-commerce in the region. Konga TV has pioneered this innovative platform, a 24-hour Buyer & Seller TV marketplace for a wide range of products and services, along with streaming services promoting African narratives, entertainment and knowledge sharing. The content is diverse and localised, fostering cultural exchange and connectivity.
The potential impact of Konga TV can increase e-commerce business activity, reach remote areas and enhance product access to potential buyers in Africa.
Innovation: Flood Risk Insurance Product
Countries of origin: South Africa
Company/organisation/inventor responsible: African Risk Capacity Group (ARC)
Launched in June 2023, this is a first Flood Risk Insurance Product to provide speedy and accurate financing for flood related disasters. It is an inventive product that is practical and customisable.
This knowledge can help businesses prepare for the calamity of floods and mitigate financial vulnerability of the people, land and its business operations.
This Flood Risk Insurance is currently available in Côte d’Ivoire, Ghana, Madagascar, Malawi, Mozambique and Togo, but will soon be offered in other African countries. The benefits includes reducing death and displacement during floods and protects the exposed communities by reducing post-disaster health risks.
Leveraging Relationships for Business Success in Africa
Innovation: Max it
Country of origin: Morocco
Company/organisation/inventor responsible: Orange
Developed in Africa for African customers, Max it, is a super-app that combines telecoms, fintech, and e-commerce on one platform. Launched in November 2023, it is currently available in five African countries, that is, Botswana, Burkina Faso, Cameroon, Mali and Senegal.
Max it super-app has features that manage mobile and fixed lines, as well as payment and mobile money transfer options aimed to be a one-stop shop that is customisable and user-friendly. Even amidst IT infrastructure and some local environmental challenges, Max it super-app is scalable to encourage innovation, partnerships and economic growth.
Leveraging Local Knowledge for Business Success in Africa is a multi-dimensional systematic planning of data gathering from relevant resources, and analysing it to make informed decisions.
Potent and effective knowledge of Africa, its people and target customers grooms businesses to engage the right marketing mix to reach customers and satisfy the needs by providing solutions that matter.
The power of building and sustaining relationships is greatly important, along with understanding innovations that would heighten market access and economic growth.
The effective leveraging of local knowledge for business success in Africa can be attributed to a clever amalgamation of the techniques and people involved in the acquisition and application of it.
Speak to us, Africa’s leading market advisory firm
We are a hands-on on-the-ground team operating from our head office in Kenya, with regional representations in Nigeria, Ghana and South Africa.
Our knowledge about the continent and its people is rich and diverse. Our years of working in Africa boasts a brilliant network of relationships in private and public sector.
Let us help you gain the information and understanding needed for business success in Africa. We will hold your hand every step of the way.