New technology helps companies break into African markets

Organizations have reported on the growing African middle class for almost a decade. However, no one has provided the recipe to unlock the potential that lies within them.

Until now.

Fraym’s groundbreaking report, Finding the Dynamic African Consumer Class, uses geospatial data to identify, locate, and reach 330 million valuable African consumers -- with precision down to 1x1 square kilometers.

Expert Authors

The authors of this report worked in the White House, at the African Union, the African Development Bank, the U.S. State Department, the World Bank, and the U.S Treasury advising leaders on economics, development finance, and African political and security issues. In this signature study, they provide powerful insights that will help all companies, including major multinationals, accelerate their growth in Africa.

The Fraym Approach

Fraym offers two critical improvements on previous studies of African consumers:

Fraym looks at more than income--they understand consumers using data on spending, asset ownership, education, and other characteristics that give a more robust view of consumer  power.

Fraym produces insight with neighborhood level precision--far more detailed than the national-level research that many companies currently rely on.

The African Consumer Class is one of the largest remaining prizes for consumer-facing companies and investors in the world. While changes in dynamic African markets are exciting, trends are highly uneven— both across the continent, and inside individual countries. Companies wanting to invest, operate and grow in these markets have traditionally lacked reliable, hyper-local data on rapidly shifting consumer demands and purchasing power. Such information – crucial to decision-making around manufacturing, distribution and marketing – has either been absent or limited to blunt national averages.

Released on 8 October, the Finding the Dynamic African Consumer report, from geospatial data company Fraym, demonstrates consumer profiling and segmentation, hotspot mapping, and market sizing at a hyper- local level. Building on decades worth of best practices, Fraym defines the Consumer Class as ABC1 consumers, or those who can purchase ‘premium’ products.

Key report insights

In addition to national, regional, and city-level analyses, Finding the Dynamic African Consumer includes key insights for business such as:

  • Ninety-five percent of the African Consumer Class is located in just 20 countries.
  • The ‘Power Five’ country markets— Egypt, Nigeria, South Africa, Morocco and Algeria—have a combined Consumer Class of 219 million people.
  • The ‘Urban Fifty’ account for 80% of the continent’s urban Consumer Class, with 10 of these largest African markets located in Nigeria.
  • Outside of South Africa, the top 5 urban markets of Southern Africa are Luanda, Lusaka, Maputo, Huambo and Harare, and together they account for 8.4 million consumers (roughly equivalent to Johannesburg’s consumer potential).

Ben Leo, CEO of Fraym explains, “Our company came into being as a solution to the problem of previously simplistic market assessments in Africa. Over the last five years, we have built the most powerful database on African consumers ever produced, combining the resources of cloud computing, satellite imagery and geo- tagged household surveys. During this period, we also spoke to numerous consumer-facing companies and they all asked a variant of the same question: Is it possible to segment and definitively locate African consumers at the city or neighbourhood level across the entire continent? This report was born out of those discussions.”

To read the full report, visit fraym.io/consumerreport.

 

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