Those who are willing to embark on an investment adventure and grow their brands in Africa in a sustainable manner must do their homework properly, warned Nomahlubi Simamane, CEO and founder of Zanusi Brand Solutions.
Simamane was speaking at the Brands & Branding for Good conference currently taking place at Gallagher Estate in Midrand, Johannesburg.
“Africa is not a consumer-led society and [is] a continent where corporates are not trusted, so an aggressive consumer education is required,” she said.
Redistribution of income is almost non-existent in many parts of the continent as ‘power-hungry' and ‘greedy' leaders, watched over by their families and friends, mismanage state resources and livela vida loca, leaving millions to starve in shantytowns and rural areas without running water, basic healthcare and electricity.
“The have-nots, mostly unemployed with little income and deprived of adequate education, survive in a cycle of poverty, are powerless, and are also the lowest consumers of media” Simamane explained, adding that their focus is on bread-and-butter issues.
“There is also a strong bias towards women and single parents.”
However, a new social class of nouveaux riches (as they are known in francophone Africa) or “black diamonds” (in South Africa) is rising and taking Africa by storm.
Simamane said that these people are aspirational, seeking prestige and exclusive status and busy acquiring materials to impress, and have a euro-centric stance.
The implications are that a business should know its consumers and analyse its needs.
“Who are they? How are they currently served? How important are they? And what is important to them?
“You should know that sustainability in Africa is multi-faceted. Add ethical value besides the unique selling proposition to give relevance to your brand, and choose areas you can impact positively,” Simamane advised.
“Here are some ideas,” she said.
“Ensure that there is market stability, reinvest into the country, employ local people and create partnerships with local people - you cannot go to those countries and believe that you can do everything on your own.
“Become a good corporate citizen, pay your taxes, respect the environment and address welfare and health issues of staff.
“Utilise eco-friendly materials and packaging, manage waste efficiently and effectively. Don't go into Africa with an arrogant attitude. Instead, engage people like real people and not like your slaves.
“Ensure future talent, offer bursaries, develop future skills and improve lives in the countries where you operate. Give excess stock to needy people, get involved in community projects, source from poor communities and establish standards and train.”
Simamane also called on potential investors to learn from others, to understand local market and act to support their brands.
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