Seeds of Opportunity: The African Growth Series
June 2023 | Issue 2
In this week's issue, you will learn more about:
- BUSINESS DAY TV INTERVIEW: The Practical Use of AI in Africa
- AFRICA OPPORTUNITY: African Smart Cities
- PE FUNDRAISING CHALLENGE: Proving Africa has a depth of opportunity
- AFRICA OPPORTUNITY: Looking to Expand Your Business in Africa?
- YOUR AFRICA EXPANSION: Go slow to go fast?
- UPCOMING EVENT: The African Continental Free Trade Area (AfCFTA) Conference 2023
- UPCOMING EVENT: Transport Evolution Africa Awards
BUSINESS DAY TV INTERVIEW: The Practical Use of AI in Africa
Artificial Intelligence is expected to boost the global economy by nearly $16 trillion by 2030, amid increased adoption to provide practical solutions for existing challenges.
Business Day TV spoke to Sisonke Mgwebi, Consultant at Frost & Sullivan Africa to get more insight into the practical uses of AI and how it can be used to solve African challenges.
Learn more: https://youtu.be/JQXfLgpyuTM
Growing in Africa?
To take hold of opportunities in Africa, please contact Lynne Martin at lynne.martin@frost.com.
#helpingAfricaGrow #artificialintelligence #ai #investment #opportunity
AFRICA OPPORTUNITY: African Smart Cities
Africa is the second most populous continent and faces rapid urbanisation. By 2050 African cities are forecasted to accommodate an additional 950 million residents. This brings challenges and opportunities, including infrastructure management issues and potential energy crises due to limited grids. To handle this influx, African cities must transition into Smart Cities, using digital technologies to address challenges, optimise resources, and reduce emissions. Renewable energy plays a key role in Smart Cities, ensuring sustainability.
Learn more in this short clip by Consultant Yaa Ngonyama: https://youtu.be/eFPGQ5dhizc.
On the 28th of June, join her and other key experts at the African Smart Cities Summit (co-located at Big 5 Construct Southern Africa) in a panel discussion that will investigate how renewable energy and sustainable solutions can be used to develop Smart Cities in Africa.
Looking to enhance your business? Then the African Smart Cities Summit is a must-attend on your calendar!
Register now at https://www.thebig5constructsouthernafrica.com/african-smart-cities-summit/delegate-registration/
📍 GALLAGHER CONVENTION CENTRE
JOHANNESBURG, SOUTH AFRICA
📅 27-29 JUNE 2023
PE FUNDRAISING CHALLENGE: Proving Africa has a depth of opportunity
Global Private Equity (PE) and Venture Capital (VC) firms have increasingly been targeting Africa in recent years for growth investments. However, convincing large institutional investors to commit capital to the region is still challenging. This is especially true for impact and/or green industry funds where concerns are often raised about the continent’s ability to absorb large-scale capital.
How can this be mitigated?
Third-party validation - Frost & Sullivan Africa has been actively working with several PE firms in the region to support Private Placement Memorandum (PPM) development by quantifying the level of opportunity available in specific sectors/sub-sectors, and profiling the nature of these opportunities and how they will change over time. This provides institutional investors with independent, third-party validation of the level and direction of very specific and addressable opportunities to ensure Africa has the depth to absorb the proposed fund comfortably.
This approach, combined with economic multipliers and some existing/on-the-ground case studies, can provide a strong case for impact investors which is an increasing global requirement.
AFRICA OPPORTUNITY: Looking to Expand Your Business in Africa?
Africa presents a distinctive emerging market with substantial growth prospects for companies seeking to expand their operations in the region. With generous resources and developing skills, the continent has unique comparative advantages and significant returns on investment. Its strategic centrality further positions it as an ideal hub for global reach. However, expanding a business across the region necessitates applying business models that can adapt to challenging operating environments across countries and regions.
Businesses often encounter significant challenges employing growth strategies across Africa, where sufficient data is lacking and requires specialised market understanding with primary research and industry expertise. As a result, businesses need a strategic growth partner such as Frost & Sullivan that offers industry-specific expertise across multiple African countries.
Frost & Sullivan is a specialised strategy consulting firm that employs a multi-faceted approach with proven methodologies and on-the-ground presence to formulate growth strategies tailored to each company's market expansion goals. Whether you are contemplating business expansion into Africa or seeking growth opportunities, Frost & Sullivan Africa can provide invaluable strategic insight. Contact us to unlock the strategy and market understanding needed for a successful venture into Africa.
YOUR AFRICA EXPANSION: Go slow to go fast?
Many of Africa’s 54 markets are showing rapid growth and upward potential albeit often from a low base. Why do we then have so many geo-expansion failures in Africa?
One of the reasons is the inability to displace existing competitors. This is often despite having technically superior products and/or the ability to deliver these at a more competitive price compared to existing players.
A very significant proportion of Frost & Sullivan Africa’s work focuses on crafting geographic expansion strategies for companies across the region, and one principle remains – Africa has very good brand memory. Switching criteria are not always obvious and hence local operating conditions need to be understood before crafting marketing and sales strategies (and the resultant revenue targets).
Entering new markets in Africa requires longer-term thinking and commitment. Local customers will often stick with existing suppliers they know are committed to the country and will be able to provide the relevant support services over the lifecycle of the investment. New entrants need to show/prove their commitment first before switching suppliers is even considered.
Your geographic expansion strategy therefore needs to take this switching cycle timeline into account and not create a burning platform by over-investing in on-the-ground infrastructure. Addressable market over time is the crucial metric to understand…
UPCOMING EVENT: The African Continental Free Trade Area (AfCFTA) Conference 2023
The African Continental Free Trade Area (AfCFTA) Conference 2023 is happening on 28-29 June 2023 in Cape Town, South Africa.
Join Research Director for Frost & Sullivan Africa, Craig Parker, on 29 June at 09h00 as he presents on ''Logistics Infrastructure is the Cornerstone to Sustainable African Trade''.
Click here to register: https://lnkd.in/dXwUnEtm.
For further inquiries, please get in touch with Mr. Mlambo at +2721 556 9253, alternatively WhatsApp at +2779 013 7629.
UPCOMING EVENT: Transport Evolution Africa Awards
The Transport Evolution Africa Awards will take place on 21 September at the Durban ICC, South Africa.
Looking for more information or have a nominee in mind? Click the link below to learn more about the Awards and to submit your entry!
Please note: Nominations close on 23 June 2023.
To find out more about opportunities in Africa, please get in touch with Lynne Martin.
