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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.
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.
Fraym offers two critical improvements on previous studies of African consumers:
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.
In addition to national, regional, and city-level analyses, Finding the Dynamic African Consumer includes key insights for business such as:
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.”
Leo adds, “As a report, Finding the Dynamic African Consumer cuts through the buzz, headlines and anecdotes, and provides concrete, granular information on African consumers, and their behaviour. I believe it has value for any business, whether you’re developing your growth strategy or go-to-market plan, or even if you just want to deepen your understanding of this complex and fascinating continent.”
To read the full report, visit fraym.io/consumerreport.
To view the technology behind these insights, visit fraym.io/demo.
Fraym is a geospatial data company that delivers hyper-local insights for 50+ African countries. Their platform helps fast-growing companies, development organisations, and government agencies answer high-priority questions about where to focus and how to reach specific populations. The company’s leadership has focused on the African continent for decades, holding senior positions in The White House, the African Development Bank, the Center for Global Development and the ONE Campaign. From offices in Lagos, Nigeria, Nairobi, Kenya and Washington, D.C., Fraym is committed to empowering African businesses and communities through precise, localised data.
Top Fifty Urban Markets in Africa
Nigeria has 10 cities among the Top 50 Urban Consumer Markets in Africa
Powerful new technology makes it possible to identify, locate, and reach valuable consumers across Africa. Consumer-facing companies typically target those who can purchase ‘premium products’ - here, we call segments of this group the Consumer Class, or ABC1 consumers.
While country-level insights can be useful for prioritizing market entry and expansion, understanding precise geographic concentrations of target consumers is essential for an effective go-to-market strategy. This is where some firms have made costly mistakes. The most accurate approaches require identifying the characteristics of consumers in specific urban clusters. Powerful new technology can locate different consumer segments in almost any urban area across the African continent—looking at the actual city “footprint,” including suburbs and informal settlements.
Among the continent’s major cities, Cairo is home to the largest Consumer Class by far, comprising 16 million people. Cairo also has the greatest number of premium “A category” consumers, or those with the most spending power, at 3.5 million. Nigeria’s fast-growing commercial capital of Lagos is next with 9 million ABC1 consumers -- or those who can afford premium products. Johannesburg, despite its outsized global profile and role in African business, comes in third with 8.5 million ABC1 consumers.
Kinshasa, the capital of the DRC, is a vast city in a country with very little traditional market data. New data and methods, however, have found 5.5 million ABC1 consumers, putting the city firmly in fourth place among urban consumer markets on the continent. Moving down the list, there are several other cities that may be surprising as well, such as Luanda, Khartoum, and Yaoundé. The data also reveal a number of sizeable Consumer Class populations in non-capital cities, such as Alexandria (Egypt), Durban (South Africa), Port Harcourt (Nigeria), Ibadan (Nigeria), and Douala (Cameroon).
When creating expansion plans or optimizing distribution channels, companies need to transcend aggregated data and understand regional trends and local market dynamics. For 50+ countries, creating consumer profiles, mapping hotspots, and sizing markets with precise, accurate data is now an option. To read more about the latest consumer insights from the continent visit, fraym.io/consumerreport. To view the technology behind these insights, request a demo at fraym.io/demo.
Two-Thirds of Africa’s Consumers Live in Fifteen Markets
Top Fifteen African Markets with Purchasing Power
Powerful new technology makes it possible to identify, locate, and reach valuable consumers across Africa. Consumer-facing companies typically target those who can purchase ‘premium products’ - here, we call segments of this group the Consumer Class, or ABC1 consumers.
The Frontier Fifteen
The newly coined ‘Frontier Fifteen’ markets are a diverse and rapidly growing set of consumer markets. Each of these countries are home to at least two million ABC1 consumers. Ethiopia is the largest of this group with a Consumer Class exceeding 10 million people, followed closely by seven markets with at least 8 million: Angola, Kenya, Ghana, Tanzania, Sudan, Tunisia, and the Democratic Republic of Congo. These markets are less likely to be on the radar of major companies and investors, but each represents significant growth opportunities for consumer-facing products and services. This group is also rich in regional diversity, with the Frontier Fifteen spread across each major sub-region on the continent.
When creating expansion plans or optimizing distribution channels, companies need to transcend aggregated data and understand regional trends and local market dynamics. For 50+ countries, creating consumer profiles, mapping hotspots, and sizing markets with precise, accurate data is now an option. To read more about the latest consumer insights from the continent visit, fraym.io/consumerreport. To view the technology behind these insights, request a demo at fraym.io/demo.
