Two Studies, Same Verdict On India's Africa Potential
ACCRA: Africa offers India Inc. a $180-billion market by 2025 waiting to be tapped as the one billion people of this 54-nation continent are set to double their net annual spending to over $1.2 trillion by then, as per two recent authoritative studies.
An African Union book, "Africa 2050 - Realising the Continent's Full Potential", spells out its vision, while a McKinsey report, "Joining hands to unlock Africa's potential", shows how Indian companies can strategise to further their foothold in Africa.
"Africa's consumer goods market will have more than doubled to around $1.2 trillion by 2025 and 30 cities spread across Africa will witness a consumption growth of more than $2 billion in the next five years," says McKinskey Asia Centre.
It says Indian companies like Dabur, Godrej, Marico and Emami that have limited presence in Africa's consumer goods landscape at present, along with others, will stand to gain a lot by strengthening their presence or marking their entry, as the case may be.
"Success for Indian companies in African consumer goods sectors requires long-term brand building, especially brand promise and identity, which is then consistently advertised, balancing quality with price for aspirational products and build consumer trust."
It also calls for more robust investing in the distribution channels, especially through partnerships, proactive management of supply chain by working with local providers where possible and leveraging the online channel.
In the case of the African Union book, one of its authors, Callisto Madavo, says Africa is at a critical point today and what its leaders do will determine where the continent is headed for, socially and economically, by 2050.
This will determine if the fast-rising aspirations of Africans are met and suggests how to go about this task: "Africa needs capable states that deliver security, have strong institutions, rule of law, and are accountable to their citizens."
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