The economic slowdown caused by the pandemic has disproportionally impacted the most marginalized countries and individuals of the world. According to the International Monetary Fund (IMF) the economic losses are expected to be much higher in emerging markets than in advanced economies. On an individual level, the virus has deepened inequality across sub-Saharan Africa with young and low-skilled workers, women and refugees bearing the brunt of the downturn.

Looking ahead, the opportunity to interrupt virus transmissions and initiate social and economic recovery in sub-Saharan Africa largely hinges on the availability and distribution of vaccines. The pandemic, however, has also exposed global inequalities in health care. At this point there are simply not enough doses available to inoculate entire African nations in the near term. The spread of false information and conspiracy theories has also led to an increase in vaccine hesitancy, further complicating vaccination efforts.

After living with the pandemic for more than a year, many questions and uncertainties remain. As a follow up to GeoPoll’s 2020 reports on the impact of COVID-19 in sub-Saharan Africa, GeoPoll conducted a survey to assess the ongoing effects of the pandemic on respondents’ finances, spending, and health, their thoughts and concerns about the vaccine, and their hopes for the future. This report details the results from that survey.

The study was conducted in March 2021 in Côte D’Ivoire, the Democratic Republic of Congo (DRC), Kenya, Mozambique, Nigeria, and South Africa. The main topics covered include:

• Changes to consumer finances, spending, and mobile money usage
• Perceptions about the government response to the virus and the trustworthiness of information available
• Anticipation about the availability and willingness to take the vaccine
• Adherence to public health measures and changes to mental and physical health

Findings from this study illustrate the ongoing disruption of COVID-19 in sub-Saharan Africa. Incomes and spending continue to fall since our study in November 2020, while prices have risen. The percentage likely to take the vaccine if it was available has decreased since November, as has optimism about when that might be. Despite these hardships, several positive trends surfaced in this study, including improvements in emotional and physical health.

Click below to download GeoPoll’s full written report, or view data in the interactive dashboard.

Data: Financial Impact, Government Response, Likelihood to Take the Vaccine, and more.

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As a follow up to GeoPoll’s earlier reports on the impact of the coronavirus pandemic in sub-Saharan Africa, we conducted the GeoPoll Year-End survey evaluating the year that has been and the outlook for the coming year.

The Economic Impact of COVID-19 in Sub-Saharan Africa

When asked about the coronavirus pandemic’s biggest challenges, finances stood out as the overwhelming challenge (55%), with ‘staying home’ trailing at 23% as the second biggest challenge. This finding could be tied directly to findings surrounding income changes since June, as 79% stated that their income had decreased since June. This percentage is even higher than the 76% who reported income decreases in our previous study. In addition, 65% state that they are more concerned with paying their expenses now than in June 2020, when 71% were already more concerned with paying expenses than pre-COVID.

These findings demonstrate that even though restrictions have been loosened in all six countries studied, the pandemic’s economic impacts continue to be felt and, for many, have worsened over time. While all countries reported high levels of income decrease, Kenya had the highest percentage of respondents who said their income had decreased a lot compared to June 2020, at 64%.

Even though restrictions have been loosened in all six countries studied, the economic impacts of the pandemic continue to be felt and for many have worsened over time – GeoPoll

Changes to Consumer Habits Due to COVID-19

Given the decreases in income observed, it is not surprising that we also observe changes in spending patterns, with consumers focusing more on essential items than non-essentials. In addition, one of the effects of the pandemic has been a scarcity of products due to disruptions in supply chains, which has resulted in rising prices of various commodities. These factors could be some of the reasons most respondents (60%) in the GeoPoll study reported spending more this year compared to last year on essential items such as food, while just 23% are spending less.

The report also shows a large shift away from non-essentials, with 59% saying they are spending less on clothes and beauty products than last year.

In contrast with several other countries where online shopping has increased during the pandemic, it has dropped in Sub-Saharan Africa. Nearly 60% report that they are shopping online less frequently than last year, which could be related to the overall decrease in purchasing of non-essential items. Compared to the previous year, 45% report they are using mobile money less frequently on mobile money usage, while 21% say they are using mobile money at about the same rates and 35% are using it more regularly.

It must be noted that, as with other findings in this summary, some of the considerations vary from country to country. For example, while online shopping decreased overall, more respondents in Kenya and South Africa reported shopping online more frequently, and over half (51%) of those in Kenya said that they are using mobile money more than the previous year, while 42% in Mozambique reported increasing their mobile money usage.

To see the statistics breakdown for each country and demographic, refer to this interactive report.

2020 Holiday Spending

Consumer spending is also experiencing changes; as the holiday season approaches, McKinsey’s study in South Africa found ongoing reductions in discretionary spending and that 88% of households expect to spend the same or less on the holidays as they did last year.

The 2020 holiday season is expected to be impacted by COVID-19, both socially and economically. Countries like Kenya have restrictions on night movement, meeting numbers, and hospitality business operations in place and studies have found that those in South Africa and other countries are planning to spend less on the holidays this year than in the past. GeoPoll’s research found similar results, with 40% overall stating that they will spend much less than last year, and 28% stating they will spend a bit less. Just under a quarter of respondents report they will spend more on the holidays this year, indicating that retailers should expect a decrease in holiday spending in 2020.

Economic Predictions for Next Year

As 2020 comes to a close, GeoPoll also examined the outlooks for next year. GeoPoll asked about the length of financial impacts of COVID-19, finding that almost half (45%) think economic effects will last at least six months, and 27% believe that the economic impacts will last over a year.

Despite this, there are signs of encouragement regarding respondents’ perceptions of their finances. A big majority (65%) believe that their finances will get better in the next year, compared to just 17% who think they will worsen, and 51% believe their country’s economy will get better in the next year. In comparison, 26% believe it will get worse.

Conduct Further Research with GeoPoll

These findings on consumer behavior are part of GeoPoll’s report on the impact the coronavirus pandemic has had on various life spheres. Download the full report here or dive more in-depth into the full dataset with the interactive dashboard here.

GeoPoll conducts surveys globally through multiple mobile-based methods, remotely reaching any population. GeoPoll can conduct research to enable brands, international development organizations, and governments better understand realities on the ground, even in the face of the challenges the world is undergoing. To request more information on our capabilities or get a quote for an upcoming project, please contact us.

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Consumer spending is also experiencing changes; as the holiday season approaches, a study from McKinsey in South Africa found ongoing reductions in discretionary spending, and that 88% of households expect to spend the same or less on the holidays as they did last year. In the meantime, news of pending vaccines is bringing hope that normalcy may return in 2021.

With these topics in mind, in November 2020 GeoPoll conducted a study in Côte D’Ivoire, the Democratic Republic of Congo, Kenya, Mozambique, Nigeria, and South Africa to gauge how lives have changed in 2020, people’s views on the future, and their willingness to take a vaccine.

This report compares results from this most recent study with GeoPoll’s previous studies, which covered topics from the perception of the disease to the economic impacts of COVID-19 in multiple African countries. The main topics covered in this study are:

• Changes to routines, mental and physical health since COVID-19
• The ongoing economic impact of COVID-19
• Changes to consumer spending, ecommerce and mobile money usage during COVID-19, and predicted holiday spending in 2020
• Perceptions of vaccines and willingness to take a COVID-19 vaccine

Findings demonstrate that COVID-19 continues to have huge impacts on the financial stability of those in sub-Saharan Africa, and that these financial impacts are leading to mental health challenges for many. The effects of the virus are especially pronounced in Kenya and South Africa, where restrictions have been the most severe.

Click below to download GeoPoll’s full written report, or view data in the interactive dashboard.

Data: Financial Impact, Vaccine Acceptance, and more in 6 African Nations

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In March, GeoPoll ran a comprehensive study on consumer behavior and purchasing decisions in Kenya’s FMCG space. As this study occurred before the pandemic spread widely, we decided to utilize that data for a comparison study of the FMCG space and how it has changed during COVID-19. So, we ran the same questionnaire again and analyzed the differences in reported purchase decisions. This report will outline what was found, like an increased influence placed on the quality of disinfectants and more people making purchases based on convenience.

Methodology

This report will compare results from two rounds of survey research that were conducted in Kenya. Both the first round and second round of the study were conducted via mobile web and the questionnaires were identical. Round one of the studies ran from March 10^th to March 16^th, meaning the results reflect purchasing behavior before COVID-19 related stay at home guidelines were enacted by the Government of Kenya. As such, the results from round one will serve as a baseline for purchasing decisions on FMCG products in Kenya before the coronavirus pandemic. The second round ran from October 3^rd through October 6^th and the results from this round will reflect the changes in purchasing behavior of FMCG products due to the coronavirus pandemic.

Both round one and two had 400 respondents located in the following urban centers throughout Kenya: Mombasa, Nairobi, Nakuru, Nyeri, Kiambu, Kisumu, Machakos, Meru, Uasin Gishu, Bungoma, Homa Bay, Kilifi, Vihiga. The gender split was 50% male and 50% female in the first round and 51% male and 49% female in the second round. There were 33% of respondents in each of the following age groups for the first round, 18-24, 25-34, 35+. In the second round, 18% of respondents were 18-24, 42% of respondents were 25-34, and 31% of respondents were over 35.

Most Frequently Purchased FMCG Products in Kenya

Both of the questionnaires began with a list of over 30 FMCG products that fall into seven categories: dental hygiene, soap, hair care, cleaning, beauty, food, and beverages. Respondents were asked to indicate whether or not they had purchased each of the items listed within the past 30 days. The table included above shows the top 10 most purchased items from each of the studies.

The top two most purchased items were toothpaste and bread in both rounds of the study and the percentages did not fluctuate more than 2% each. Although the percentage of respondents that purchased laundry soap within the 30 days preceding the survey remained the same, laundry soap dipped from 3^rd place to 5^th place from pre- to post-COVID. Converse ranking changes occurred for meat purchases from the first to the second round, although meat purchases were made 9% more in the post-COVID round than in the pre-COVID round. Also notable is the increased purchases of grains and beans, which replaced toothbrushes on the top 10 list.

Factors Influencing Purchase Decisions of FMCG Products in Kenya

In past studies on Kenyan consumer behavior, it has been found that consumers are price-aware and brand loyal, yet tend to justify paying higher prices in exchange for quality products. The data collected in both rounds of these studies generally reflect such findings.

Overall, the results of the studies showed that quality was by far the key driver of FMCG purchases. In every product category other than beverages, quality influenced purchases at least 20% more than any other factor in both rounds. When comparing the studies against one another, there was even a slight increase in the role that quality played in the purchases reported in round two, which indicates that quality plays an even more important role in FMCG purchasing decisions in a post-COVID era than the pre-COVID era.

Considering the charts above, the most important factors that influenced purchasing decisions from round one to round two were minimal; however, when the results are looked at by item individually rather than by category, there are some interesting insights about how COVID has changed consumer’s buying behavior.

Within the cleaning category, disinfectant cleaner and floor cleaner had somewhat opposite changes from before the pandemic to after the pandemic. Disinfectant cleaner purchases were driven 5% more by quality after the pandemic than before, while floor cleaner purchases were driven 2% less by quality, 5% less by brand, and 10% more by price. These changes are likely due to the pandemic and consumer’s general concern about killing the coronavirus.

Although the differences were rather small, similar differences in key influences of purchasing decisions before verses after the pandemic began were seen for other products as well. For example, the influence of price increased for non-essential FMCG items, like window cleaner, hair oils, and mouthwash, while the influence of quality increased for health-related items like produce, meat, and disinfectant cleaner. Interestingly, the influence of quality did not increase for one of the most essential items during the COVID pandemic: hand soap. The largest change seen for hand soap was an increase in the influence convenience had on purchases, which is likely due to consumers needing to purchase more frequently than usual due to diligent hand washing practices for virus prevention.

Key Takeaways: GeoPoll Research Solutions for the FMCG Space in Kenya

GeoPoll’s mobile research solutions are a flexible resource for gathering insights on consumer behavior. Data-driven decision making is crucial when adapting to a rapidly changing market, like the market during the ever-evolving coronavirus pandemic. For more information on how GeoPoll can gather valuable data for your team, contact us today.

The post Drivers of FMCG Purchase Decisions in Kenya Before and During COVID-19 appeared first on GeoPoll.

mPharma – A mHealth tool for Africans

mPharma is a startup electronic pharmaceutical platform developed for African countries that is available on desktop and mobile. Healthcare providers, pharmacies, and insurance companies use the mPharma platform to source prescription drugs at a more reasonable cost than any other drug sources, and no payments are required up-front. This model is aimed to alleviate financial barriers that are inhibiting Africans from accessing life-saving healthcare treatments.

mPharma also has a free mobile application for healthcare-seeking patients. This app, which is called Mutti, allows patients to pay for medications using mobile money, with only a small amount of money required upfront. The rest of the cost can be paid back incrementally on a flexible timeline.

In a time when medical resources are limited due to a pandemic, mPharma’s platform for healthcare providers and patients is incredibly important. Accessibility of medication for the treatment of non-coronavirus related health issues is integral to keeping valuable space available in hospitals for patients that need emergency care.

Well Beyond – An educational mobile app for Water, Sanitation, and Hygiene

Well Beyond, short for “well beyond water”, is a free mobile application that emerged as an educational tool in the wake of the coronavirus pandemic. The mobile application provides people living in with practical knowledge and hygiene recommendations for staying protected from the coronavirus. The app is unique because the hygiene recommendations are specifically designed for people with minimal resources available and the app’s content explains how to use available resources as effectively as possible.

To reach people that don’t own smartphones, Well Beyond partners with NGOs. These partnerships allow Well Beyond to train the NGO staff on-the-ground in vulnerable communities on how to best educate residents on how to prevent the spread of coronavirus. The trainings are optimized for the specific region the NGO staff are working in and take into consideration what resources residents have access to, which informs action plans the NGO staff can recommend to the vulnerable communities.

Contact Tracing Apps—Go.Data by the World Health Organization

The World Health Organization worked with the Global Outbreak Response Network, as well as other partners, to develop a mobile application called Go.Data. Although a contact tracing app, Go.Data is not the same Bluetooth-to-Bluetooth tracker that is popular in advanced economies. The Go.Data app actually facilities public health workers, called Contact Tracers, who battle the spread of highly infectious viruses on-the-ground in outbreak hot spots.

Contact Tracers in this context work in LMICs going door-to-door screening for symptoms, collecting data, and tracking down anyone who may have been exposed in order to curb the spread. Until Go.Data, Contact Tracers used pen and paper for every aspect of the job, which was time-consuming. Go.Data speeds up the process significantly, which is of paramount importance during outbreaks of highly contagious diseases.

The app has already proven quite effective. Go.Data was released in September of 2019 and was used in managing the Ebola outbreak in the DRC and has been used successfully in the Maldives combatting the spread of Coronavirus.

GeoPoll’s Mobile Research Platform

GeoPoll’s  mobile research platform is also fighting against coronavirus in emerging markets. Our unique survey research methodology utilizes mobile phones for remote data collection, which is the quickest and safest way for development and humanitarian aid organizations to conduct research during this crisis. Since the pandemic began, our platform has conducted 2,409,077  interviews across 88 countries and the resulting data has informed countless decisions. To learn more about how GeoPoll’s data collection platform can be a resource for your organization, contact us today.

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Now, with the global coronavirus pandemic and oil crisis that are expected to push SSA into a recession, the steps taken to stimulate the region’s economies are even more critical than they were only six months ago. The pressure on sub-Saharan Africa has drastically increased. An area that has focused on growth alone must now face a daunting economic recovery.

To face such a challenge, SSA will need to use the limited resources available as efficiently as possible. This need for efficiency is what has electrification on development experts’ minds as a critical tactic for sub-Saharan Africa to pull itself back up economically. In this post, we will explore why the electrification of SSA is more crucial than ever before.

Unreliable Electricity’s Impact on Sub-Saharan Africa

Despite progress in the electrification of SSA, more than 600 million people are still without electricity, and the available electricity is costly and unreliable. According to Energy for Growth, an organization focused on energy poverty, African companies average being without power for 50 hours per month. Such outages have cost companies as much as 31% in their sales.

The lack of reliability at this capacity increases business costs and creates uncertainty surrounding overhead expenses for business owners; this makes being a business owner less accessible and desirable. In turn, it affects how many jobs business owners can provide. A World Bank report on Africa as a whole claimed that power outages in the continent limited employment opportunities in highly skilled jobs by 35-41% and limited self-employment by 32-47%. Additionally, research has shown that costly and unreliable energy is one of the primary limitations for job creation for almost every country in Africa.

Electrification for Industrialization

Although electrification can create job opportunities that are crucial for economic recovery, this is due primarily to electrification’s role in industrialization. Industrial processes require human labor, but, more importantly, industrial processes require large amounts of energy to function.

Reliable and cost-effective energy for manufacturers would positively impact SSA’s economy because it would allow for increased production volumes, profit margins, and job availability. Additionally, industrialization can bring an increase in self-reliance for economies and present opportunities for international trade—both of which are positive for economic recovery. Beyond this, manufacturing can also help a nation accumulate capital, which can be re-invested back into long-term economic growth tactics.

Electrification for Healthcare

Electrification is necessary to stimulate job creation and capital accumulation for economies in SSA, but without a healthy population of citizens, electrification can only go so far in aiding economic recovery. In order to combat the coronavirus pandemic, healthcare facilities in SSA need electricity. Only about 60% of healthcare facilities in the region have electricity. Out of the minority of facilities with electricity, only 34% of hospitals and 28% of other healthcare facilities have reliable electricity. Even if a vaccine for the virus is just around the corner, healthcare facilities without reliable electricity will not be able to keep vaccines cold—which will mean coronavirus can threaten the lives of populations in SSA until the problem is solved.

Takeaways of Reliable Electricity Access for Economic Recovery

Sub-Saharan Africa faces an upward battle to recover from the economic impact that coronavirus has had on the region. Experts have spoken out on the various tactics SSA could use to grow economically for years now, but the recession has increased the pressure to change quickly. When seeking solutions to economic recovery, the increase in access and reliability of electricity presents multi-prong benefits that make the tactic a potentially powerful use of limited resources.

At GeoPoll, we specialize in remote data collection in areas of the world that are hard to reach through traditional methods. For this reason, we conduct monitoring and evaluation campaigns for a variety of development organizations. Projects like these track progress of development initiatives, like the expansion of electricity access and reliability. To learn more about our research capabilities, contact us today.

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