African brands

Africa is one of the fastest-growing consumer markets in the world.

A recent report revealed that non-African brands account for a whopping 84% of the top 100 most admired brands in Africa.

 

HARMONIZING THE INTERESTS OF SMALL AND MEDIUM COMPANIES WITH THE INTERESTS OF THE LARGER COMPANIES ALLOWS THE GROWTH OF LOCAL BRANDS IN LINE WITH THE PHILOSOPHY OF THE LOCAL CONTENT.

 

In light of the increasing affluence, population growth, urbanization rates, and rapid spread of access to the internet and mobile phones on the continent, Africa’s emerging economies present exciting opportunities for expansion in retail and distribution.

By 2030, the largest consumer markets will include Nigeria, Egypt, and South Africa.

African business leaders and investors such as Aliko Dangote are aggressively investing across the continent, which is a sign of their confidence in the future for growth in African consumerism.

 

Indeed, Africa’s longer-term economic prospects can be safeguarded by making bold and well-informed decisions today, which, in turn, can transform the current crisis into a catalyst for innovation.

Policymakers must continue to support businesses—both smaller enterprises and larger firms!

The greatest priority must be to bolster the micro, small, and medium-sized enterprises that are key to African commerce and account for 83 percent of private-sector employment in Africa.

There are several steps that governments can take to provide financial support to MSMEs. One option is to assist MSMEs through larger firms in their value chains, which might include upstream suppliers and downstream buyers.

Governments can provide easier liquidity and working-capital terms to these larger players, and they can make such support conditional upon these firms’ providing favorable financial terms to MSMEs. Governments can also consider providing risk guarantees or first-loss mechanisms while requiring banks to on-lend under the chosen set of criteria and guidelines in order to encourage banks to lend to MSMEs.

To bolster large firms, governments can consider two approaches. First, in a few situations, countries may designate certain sectors as “strategic” and develop support packages—potentially including short-term loans, payroll support, and debt-to-equity swaps. In Nigeria, for example, the government has designated key agricultural value chains and the cement industry as strategic; in addition, their broader economic relevance, those sectors are particularly important in the country’s drive to substitute imports. In addition, governments can help a broader set of companies conserve cash and survive the crisis.

THE ABILITY OF MANAGERS TO PROMOTE AND MANAGE BRANDS WILL BE ESSENTIAL FOR THE DEVELOPMENT OF EVERY SECTOR

 

PRESENTED BY ROMANO PISCIOTTI

Rome Nig African brands

Romano Pisciotti copia 300x228 African brands

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