Africa has a fast-growing, rapidly urbanizing population with big unmet needs. This means there is a trillion-dollar opportunity to industrialize Africa, to meet rising domestic demand and create a bridge-head in global export markets. In addition, there has been a big push by governments and the private sector to close infrastructure gaps. There is a continued resource abundance in agriculture, mining, and oil and gas, with innovation and investment in these sectors unlocking new production on the continent. The rapid adoption of mobile and digital technologies could leapfrog Africa past many obstacles to growth.
Mckinsey believes that building a successful business in Africa requires a long-term approach and four essential practices:
- Mapping an Africa strategy – setting a clear aspiration, prioritising markets, defining how to achieve scale and relevance and creating an ecosystem to thrive.
- Innovating business models – truly engaging with customers, creating products and services to fulfill unmet needs, getting lean to drive down costs and price points, and harnessing technology.
- Build resilience for the long term – riding out short-term volatility, diversifying portfolios, integrating up and down the value chain, understanding local context and engaging with governments.
- Unleashing talent – developing skills in frontline workers, creating robust talent development processes and harnessing the power of women’s advancement
Source: McKinsey Newsletter