In addition, global businesses often find it difficult to break into markets that operate so differently from those in more developed regions. Poor infrastructure, disparate access to technology, and a reliance on informal trade to sell goods make the African landscape unique. The diversity of the continent, which is made up of 54 countries ranging from more developed nations such as Tunisia to the extremely poor such as South Sudan, also makes it difficult to understand the continent in its entirety. A lack of readily available market research compounds this problem. Below we go through some of the challenges and opportunities surrounding market research in Africa.

Challenges of Market Research in Africa

Market research is used by companies looking to gain a better understanding of a market and consumer base, but in Africa, research is challenging to conduct due to multiple factors, including:

Disparate Communications and Technology Access: Access to communications tools such as mobile phones and the Internet is varied across Africa. While both basic mobile penetration and smartphone penetration rates are growing among wealthier and urban populations, in rural areas, mobile phone penetration often remains low. Access to the Internet also varies widely depending on the population studied. Access to technology limits the modes through which research can be conducted in Africa, especially when researchers are looking to gather a nationally representative sample or one that reaches lower socioeconomic groups.

Infrastructure Challenges: Inadequate roads and maps and a lack of access to clean water and electricity in certain areas can pose a challenge to researchers, especially those looking to conduct face-to-face research. It can take months for a team of researchers to cover the vast areas of land necessary to gather an adequate sample size in many countries in Africa, especially when collecting data from rural populations.

High Number of Languages and Cultural Context: There are estimated to be at least 1,500 languages spoken throughout Africa, with many people speaking multiple languages or dialects that can be extremely specific to a region. This diversity means that research often needs to be conducted in multiple languages at once. Additionally, certain populations in Africa have a distrust for outsiders that can further hinder market research efforts. Due to these factors, in-person or telephone enumerators must be specifically recruited and trained for the population they are interviewing.

Opportunities for Market Research in Africa

Despite these challenges, there is a need for more accurate market research data for the global and local corporations moving into the region to understand their specific markets and audiences. While getting a full picture of the sub-Saharan African landscape for fast-moving consumer goods products would be a challenge, companies can gain insights on specific segments, such as the Kenyan landscape for beverage products. To conduct effective market research in Africa, researchers should keep the following guidelines in mind:

Narrow audience targeting: Due to the diversity of Africa as a whole, applying a research study to the entire continent is unlikely to yield useful results unless they are split into smaller sub-populations. Researchers should focus on a specific country, a region such as East Africa, or demographic group, such as urban youth populations. Those who are looking to conduct broader studies should ensure their sample sizes are large enough to compare results by country, region, or demographic group.  

Consider methodology and mode challenges: Researchers should consider what methodology will best suit their project and the population they are trying to reach. Projects with higher budgets and those looking to reach rural or illiterate populations may be better suited to an in-person method such as CAPI (Computer Assisted Personal Interviewing) or voice call method such as CATI (Computer Assisted Telephone Interviewing). Those with lower budgets may choose to conduct research via SMS or online through web-based links. Focus groups administered either in-person or via online or mobile-based focus groups may also be appropriate for certain projects.

Hire local experts: Leveraging the experience of local market research firms is extremely valuable when researching in Africa. Market research companies who operate out of the countries they conduct research in will have a stronger knowledge of the local market than outside groups, and often have their own trained enumerators. GeoPoll has offices and call centers throughout East, West, Southern, and Central Africa, and can bring valuable local knowledge to any research project.

Conduct Market Research in Africa

GeoPoll has a wide range of experience conducting research throughout Africa utilizing our database of respondents and mobile-based research methodologies. To learn more about GeoPoll’s capabilities in Africa, please contact us today.

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Jumia’s revenue growth truly is impressive but it also displays the growth of the consumer market in Africa overall. Consumer spending throughout Africa has grown 3.9 percent each year since 2010. 53% of income earners in Africa are between 16 and 34 years old and these consumers are predicted to spend exponentially in the coming years. According to a report by McKinsey from 2015, “…. consumers will contribute to more than $400 billion in total consumption growth in the next decade….” All the while, Jumia is building a brand that is making online shopping, and product delivery, accessible to Africans.

The prominence and potential profitability of online shopping in Africa is likely surprising to some. We may know that the world wide web does indeed stretch across the globe, but Internet penetration rates have historically been low throughout Africa. However, access to the Internet is rapidly changing throughout the continent and it is now safe to say that Africa’s digital revolution is thriving.

According to Internet World Stats, on June 30^th 2018, Africa had a 36.1% rate of Internet penetration, which indicates 464,923,169 Internet users. Additionally, at 10,199% growth in Internet users between 2000 and 2018, Africa’s Internet user growth rate is higher than the Internet user growth rate of the rest of the world combined. Despite this, Africa still has the lowest percentage of population online compared to the rest of the world, which indicates how much potential the market has for expansion of Internet connectivity, and subsequent online shopping, in the coming years.

As the continent becomes more and more connected to the Internet and the consumer class continues to grow, Africans are going to become an even more valuable consumer market. Jumia’s growth and development of online shopping infrastructure is aligning perfectly with Africa’s digital revolution. The company’s current online sales are likely from individuals living within the top tier socio-economic classes in Africa, which only shows that Jumia’s billion-dollar valuation is a modest beginning when considering where the valuation may end up in the next five-to-ten years when Internet penetration rates and consumer spending intersect.

Beyond e-commerce, expanding brands interested in emerging markets should be paying special attention to Africa as a continent full of revenue opportunity. The consumer base in the continent skews young and these teenagers and young adults are becoming more equipped with disposable income and the desire to spend. Many FMCG companies have already expanded into Africa so the time is nigh to impact consumer perceptions of your company’s brand before the continent is flooded with competition.

To learn more about African consumers, hire the experts. GeoPoll specializes in conducting market research in emerging markets, with a special focus on Africa. We use multi-modal mobile survey research solutions to gather valuable data from consumers in hard to reach areas of the world. Our team can help your company navigate the cultural challenges that come with developing questionnaires for an unfamiliar market and can assist with drawing conclusions from a survey project’s resulting data. GeoPoll does all of this quickly and in real-time. To learn more about how GeoPoll can help your company accomplish goals, contact us today!

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