- Learn about the key factors in assessing the African middle class - Identify the political and social dynamics that may influence business in the region - Assess the growth opportunities in various countries and key focus areas of future development
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Transcript
Assessing Opportunities Within the Rising Assessing Opportunities Within the Rising African Middle ClassAfrican Middle Class
Ghana is ranked 1/103 countries as most The cost of
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Note: Mortgage as Percentange of Income is a the ratio of the actual monthly cost of the mortgage to take-home family income. Average monthly salary is used to estimate family income. It assumes 100% mortgage is taken on 20 years for the house(or apt) of 90 square meters which price per square meter is the average of price in city center and outside of city center.
Ethiopia
Kenya
Brazil
Tunisia
India
Turkey
Mortgage as Percentage of Income
Source: Numbeo and Frost & Sullivan
countries as most expensive to pay a
mortgage
The cost of living and
buying groceries is almost equal in Nigeria and
the United Kingdom
We Should Not Confuse Per Capita Consumption Expenditure As Middle Class Growth
NigeriaGhana
Rising per capita incomes translates into greater demand
potential
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2001
2011
Population in MillionGDP Per Capita in US$
South Africa
Kenya
South Africa has high GDP per capita, but the top income decile earns 60% of income and has increased in the past decade
Tertiary Education Levels and ICT Development Are A Strong Indicator of Middle Class Growth and Size
Tertiary sector growth
Infrastructure development
Tertiary Enrolment and Mobile Subscriber Correlation to Spending ($10 to $20 Per Day)
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Source: Africa Development Bank, World Bank and Frost & Sullivan
Infrastructure development
Urbanisation
Geographic Expansion
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Frost & Sullivan’s Strategic Approach to Geographic Expansion
Test expansion options
againstt market information
and internal analysis
Country Selection
Strategic Options
Quick wins
Commercial feasibility
Business Case
Phase 1: Building the Fact Foundation
Phase 1: Building the Fact Foundation
Phase 2: Recommended
Strategic Options
Phase 2: Recommended
Strategic Options
Phase 3: Business Case DevelopmentPhase 3: Business Case Development
Phase 4: Implementation
Phase 4: Implementation
• Develop rollout plan• Design systems and
procedures• Support on the ground roll-out
(structures, asset rollout and staff)
• Establish relationships with
Initiate Operations
• Assess internal strength & capabilities
• Operational review • Growth strategy and goals• Resource Availability• Readiness for change
Internal Analysis
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Country specific analyses will be developed for each key business category: