INDEX
Note: page numbers followed by f refer to figures.
acquisitions strategy, 31, 89, 103
Addis Ababa, Ethiopia, 41, 43, 64, 94
Adesina, Akinwumi, 58, 152, 154
Affordable Housing Hub, 116
Africa
business opportunities in. See business opportunities
cities in. See cities; urbanization; and specific cities
land area comparisons for, 83, 84f
long-term growth prospects for, 7
population growth in, 4, 8, 9, 12–14, 40–41, 85
strategies for managing challenges in, 144–145, 145f
working-age population in, 40
Africa50 (infrastructure investment platform), 63–64
African-based companies. See also specific companies
annual spending by, 44
lag in number of large companies, 20–22
revenue and growth expectations of, 12, 13f
African Battery Metals, 73
African Continental Free Trade Area, 15, 16
African Development Bank (AfDB), 16, 63, 64, 152, 154
African Leadership University (ALU), 129–130, 160, 181
African Stability Index, 141–143, 142f
Africa Tech Challenge, 166
African Visa Openness Index, 16
Afrobarometer, 153
agency banking, 112–114, 118–119
agriculture
commercialization of small-scale farming in, 70, 75
development opportunities in, 67–70
digital technology adoption in, 75, 76
funding access in, 70
income from shift to higher-value crops in, 69
innovation opportunities in, 68–69
investment opportunities in, 23–24
Japanese investment in, 68
new crop development in, 69–70
private-sector firms’ role in, 69
shift to urban economy from economy based on, 41–43
smallholder farmers in Nigeria and, 67–68
Algeria, 11
aluminum-can manufacturing, 52
Ambode, Akinwunmi, 44
Angola, 11, 86, 88, 90, 99, 139, 143
apparel manufacturing, 49–50, 53, 56, 107, 156
Arla Foods, 104
Aspen Pharmacare, 18
Atlas Mara (financial services group), 137, 158
Attijariwafa Bank, 91
automotive industry, 50, 54, 55, 56, 58, 107–108
Aviation Industry Corporation of China (AVIC), 165–166
AXA, 76
backward integration, 120, 144
banks and banking
agricultural lending by, 70
cellphone-based. See mobile payment services
expansion strategy of, 91, 92–93
performance of, 28
beverage industry, 23, 45, 50, 52, 54, 169–170. See also Coca-Cola
Billon, Jean-Louis, 100
Black Rhino, 147
Blackstone, 147
Botswana, 47
Bowman, Mark, 4–5, 6, 139, 147, 151, 170
brands
Coca-Cola’s diverse markets and tailoring of, 95–96, 101–103
Coca-Cola’s standards for, 101
consumer income and spending differences and, 6
SABMiller’s development of, 4, 5–6, 31
breweries, 52, 151. See also SABMiller
BRIC countries, infrastructure in, 58–60
Bridge International Academies, 65–66
broadcasting companies, 122–123, 170–171
Bryant, John, 111
business costs, and electricity supply, 60
business environment (ease of doing business), 14–15, 147, 185–186
adjacent industry sectors or new customer segments in, 132
business objectives and social purpose intertwined in, 185–188
engaging customers by rethinking, 114, 118–121
Equity Bank’s agency banking model and, 112–114, 118–119
four innovation practices for, 32f, 114
Indomie instant noodles marketing and, 119–120
lean business practices and, 114, 121–123
PZ Cussons’ distribution network and, 120
resilience in, 135–136, 183. See also resilience
strategy for innovating, 31, 32f, 111–132
technology adoption and, 79, 114, 123–132
challenges to, 14
digital and mobile technologies as, 125
ease of doing business and, 14–15
economic and political volatility and, 11–12
geographic and industry trends and, 30, 31
growth and profitability possibilities and, 7, 27–33
lag in number of large companies and, 20–22
market size and growth in, 7, 8–16
profitability and strategy and, 29–30
regional integration and, 15–16
resources needed for, 30
retail outlet expansion and, 25
revenue and growth expectations and, 12, 13f
room for new companies and, 7, 16–22
strategic guide for winning in, 29–33
strategic moves and, 30, 31–33, 32
urbanization and population growth and, 12–14
cacao (cocoa) production, 69–70, 99–100
Cargill, 100
cement industry, 50, 115–116, 134, 152
Chandaria, Manu, 188
CHI (juice and dairy company), 103
China
Africa’s land area compared with, 83, 84f
consumer spending related to income in, 48
foreign direct investment from, 137–138
Fortune 500 companies in, 20
income growth in, 8
infrastructure financing by, 123
internet-related services and growth in, 77
labor costs in, 55
mobile phones from, 116
online sales in, 25
working-age population in, 40, 158
chin chin packaged snacks, 115
Chinese-owned companies
African infrastructure construction by, 123
capital-intensive investments by, 138
competition between African companies and, 122, 150
import substitution by, 53
infrastructure construction and, 123
percentage of Africa’s industrial production handled by, 53
Choppies, 47
Christensen, Clayton, 60
cities. See also urbanization and specific cities
Coca-Cola’s marketing in, 95, 98
growth strategy focus on, 98–99
with more than 5 million inhabitants, 41, 42f
population growth in, 41, 42f, 43
retail outlet expansion and, 25
shift from rural economy and, 41–43
urban sprawl challenges in, 65
acquisitions strategy of, 89, 103
Africans on leadership team of, 102
brand portfolio held by, 102–103
brand standards maintained by, 101
business objectives and social purpose intertwined by, 185
cities as marketing focus of, 95, 98
distribution systems for, 105, 120–121
Ebola epidemic response of, 101–102
expansion strategy of, 89, 95–96, 98, 101
pan-African strategy of, 87–88, 89–90
partnerships used by, 103, 105
tailoring offerings to diverse consumers by, 102
cocoa (cacao) production, 69–70, 99–100
Commercial Bank of Africa, 28
Community Development Committees (CDCs), 74–75
community programs
building trust using, 150
business objectives and social purpose intertwined in, 185
need for companies’ involvement in, 184–185
Congo, Democratic Republic of the (DRC), 73–74, 96, 101, 134, 142f
Consol Glass, 23
construction industry, 11, 20, 61, 93–94, 123, 165
consumer goods companies, 45, 92, 104, 105, 120, 140
consumers
affordability as decisive factor for, 121
brand consciousness of, 101
business opportunities from unmet demand from, 7, 22–27
Coca-Cola’s products tailored to range of, 95–96, 101–103
creating products and services for unmet needs of, 114–117
Equity Bank’s agency banking model and needs of, 118–119
growth in number of, 12
income and spending differences among, 6
Indomie instant noodles marketing to, 119–120
longer-term view on, 48
population growth and increase in, 40, 41
rethinking business models to engage, 114, 118–121
top items sought by, 45
consumption
economic growth and changing patterns in, 96, 97
income and wealth disparities and, 47
increase in amounts spent in, 44
Continental Free Trade Area, 15, 16
Coolworld stores, Nigeria, 120
Côte d’Ivoire, 17, 69, 70, 104
cacao production in, 69–70, 100
palm oil production in, 100, 104
rubber production in, 100
as stable grower, 143
toll bridges in, 63
Cummings, Alex, 88, 89–90, 95, 96, 101–103, 105
customers. See consumers
dairy companies, 103, 104, 144
Dangote, Aliko, xiv, 152
businesses of, 27–28, 133, 134–135
food self-sufficiency and, 144
government’s relationship with, 152
long-term view of, 135–136, 138
resilience in business models of, 134–135
Dangote Academy, 167
Dangote Group, xiv, 53
supply chain integration by, 144
talent development by, 167
delivery systems in companies, 45, 47, 76, 120–121, 147
Descalzi, Claudio, 71
Development Bank of Ethiopia, 23
Diamond, Bob, 137
digital technology
Africa’s lag in penetration of, 77
agricultural use of, 75
banks’ cost reduction using, 121–122
as biggest business opportunity, 125
economic growth and, 123–125, 124f
growth trend from rapid adoption of, 40, 75–79
infrastructure expansion for, 77–78
investment increases in, 12
mobile money and, 123, 125–126, 128
productivity gains from using, 79
underfunding of, 76
distribution networks
Indomie instant noodles and, 119–120
last mile delivery in, 105–106, 120–121
multinationals’ local partnerships for, 104, 105–106
PZ Cussons’ innovations in, 120
complexity and, 142
examples of, 140
growth and risk profiles for, 139–144, 142f
non-African countries added for, 138–139
diversity
profitability and, 172–174, 173f
as strategic priority, 172, 175
driver’s license processing, 117
Dufil Prima Foods, 112
ease of doing business, 14–15, 147, 185–186
East Africa
consumption patterns in, 96, 97
mobile money accounts in, 78, 78f, 125
East African Community, 15
Ebobissé, Alain, 64
Ebola epidemic (2014–2015), 101–102, 184
Ecobank, 122
e-commerce
growth of, 78
Econet Group, 184
economic development
flying geese paradigm on, 55–56
mining and, 73
urban sprawl and planning for, 65
economic growth. See also growth trends
adjacent industry sectors or new customer segments and, 132
African Stability Index on, 141–142, 142f
Africa’s opportunities for, 33
creating products and services for unmet needs as strategy for, 115
diversification strategy related to, 141–144, 142f
efficiency and slowdown in, 122
internet services as catalyst for, 76–77
large companies as drivers of, 22
mobile technologies key to, 123–125, 124f
smaller and medium-sized companies and, 23
stable, slow, and vulnerable grower categories, 143
Economist, The (journal), 155
Egypt, 11, 12, 50, 85, 95, 143, 162
electricity supply
business development priority and, 58
companies’ support for, 62, 63, 64
generator-based power in, 60
local context for, 152
manufacturing hubs and, 57
variations among countries in, 60
electronic payments. See mobile payment services
emerging markets
income increases with urbanization in, 41
large companies in, 20
rebalancing of global economy toward, 12–14
Eni, 71
entrepreneurs, job creation by, 27
Equitel cellphone banking app, 113–114, 122, 128
Equity Afia medical centers, 131
agency banking model of, 112–114, 118–119, 128
digital channels used by, 121–122
high efficiency and low cost of, 121, 122, 128
unmet consumer needs met by, 186
Ethiopia
Coca-Cola’s expansion into, 95
Dangote Cement company in, 134
digital payments in, 35
electricity supply in, 60
glass-bottle manufacturing in, 23, 169–170
greenfield industrial hub in, 107
labor-intensive manufacturing exports from, 55
mobile phone use in, 116
population of, 85
as stable grower, 143
textile hubs in, 49–50, 53, 107
urban infrastructure in, 43, 64
Exim Bank of China, 61
exports
industrial development and, 50, 54–56
Kenya horticultural products as, 69
labor-intensive products and, 55
liquefied natural gas and, 71
mining and, 74
Morocco’s revenue from, 54
Facebook, 78
fertilizer production, 68, 71, 74, 134
Fettah, Nadia, 85–86, 90, 94, 161, 169, 170
financial services firms, 85–86, 91, 92, 161
FirstRand Bank, 28
food companies, 22, 27–28, 45, 56, 69, 104, 111–112, 115, 144, 146
foreign direct investment (FDI), 9, 74, 137–138
foreign-owned companies. See also Chinese-owned companies; multinationals
growth markets and, 98
long-term thinking by, 137
percentage of large companies as, 20
ways to increase revenue by, 53–54
Fortune 500 global companies, 20
free-trade zones, 107
Gabon, 166
gas industry, 70–71, 72, 99–100
business objectives and social purpose intertwined at, 185
career development program of, 169
health-care partnership of, 66
Nigeria’s infrastructure upgrades and, 62–63, 152, 185
size of African investment by, 31
talent development by, 167
gender diversity
profitability and, 172–174, 173f
as strategic priority, 172, 175
Generation youth skills program, 156–157, 158, 164–165, 176
GetSmarter, 130
Ghana
Africa Tech Challenge in, 166
Coca-Cola’s expansion into, 95
consumption patterns in, 99
Dangote Cement company in, 134
economic growth of, 12, 96, 98
palm oil production in, 100
rubber production in, 100
solar energy kits in, 126, 140
Gilchery Skip-Trace, 164
glass-bottle manufacturing, 23, 169–170
government policies, 148–150. See also regulation
companies’ relationships and, 151–152
corruption issues and, 152–154
Dangote Group in Nigeria and, 134
data-driven solutions in transportation and, 75
ease of doing business and, 14–15, 147, 179–180
industrial acceleration plans in, 54
local managers and leaders and, 151
manufacturing incentives under, 53
multinationals’ local partnerships and, 104
private operators of schools and, 66
skilled labor training and, 57–58
visa-free travel and, 14, 16, 186
greenfield industrial hubs, 23, 49–50, 107
Gro Intelligence, 23–24, 25, 75, 166–167
growth trends, 35–79. See also economic growth
business opportunities in, 38, 39f
digital payments example of, 35–37
industrial revolution and, 38, 49–58
infrastructure gaps and, 38, 58–66
mobile and digital technologies and, 40, 75–79
natural resources and, 40, 66–75
urbanizing population with spending power and, 38, 40–48
Guaranty Trust Bank (GTB), 28
Guinea, 101
Guinness, 52
GZ Industries (GZI), 52
Harambee Youth Employment Accelerator, 165
Harvard Business Review, 7
Hawassa Industrial Park, Ethiopia, 49–50, 53, 57, 107, 108
health care
business opportunities in, 41, 44
consumer spending on, 58
Equity Bank’s support for, 131
gaps in, 184
GE’s partnership in, 62, 66, 185
new technologies in, 79, 130–131
Heineken, 52
Helios, 36
high-performing companies
diversification strategies of, 140
internships used by, 169
local knowledge used by, 149
long-term view of, 137
strategies for managing challenges in Africa, 144–145, 145f
technology in growth strategy of, 123–125, 124f
training programs of, 167, 168f
hospitals, GE’s partnership with, 66, 185
housing, brick-making process for, 115–116
Huang Shiyi, 94
Ibrahim Index of African Governance, 141, 152–153
iCow app, 108
iHub, 108
imports
consumption growth and, 50, 54
local manufacturing as substitution for, 50, 52–54
packaging and, 52
India
Africa’s land area compared with, 83, 84f
electricity supply in, 61
Fortune 500 companies in, 20
internet-related services in, 77
online sales in, 25
working-age population in, 40, 158
Indomie brand instant noodles, 111–112, 115, 119–120, 121, 147
industrial revolution, 38, 49–58
doubling manufacturing output in, 50, 51f
export opportunities from, 50, 54–56
Hawassa Industrial Park, Ethiopia, and, 49–50
local manufacturing and import substitution in, 50, 52–54
obstacles to manufacturing growth in, 56–58
skilled labor force needed in, 57–58
industrial tourism, 170
infrastructure development
Africa50 investment platform for, 63–64
business challenges from gaps in, 118, 121
Chinese government and, 123
data-driven solutions in, 75
digital technology’s need for, 77–78
GE’s support for Nigerian development of, 62–63, 152, 185
greenfield industrial hubs with, 107
mining’s need for, 73
other emerging markets compared with, 58–60, 59f
private sector’s role in, 62–64
public-private partnerships in, 65–66, 44, 147
special economic zones with, 108
toll bridges and toll roads in, 63
transportation needs and, 64–65
water supply issues and, 64
innovation
agricultural opportunities for, 68–69
brick-making process and, 115–116
chin chin packaged snacks and, 115
driver’s license processing and, 117
M-Kopa’s solar-power kits with financing and, 125–128
mobile money services and, 125, 127–128, 132
PZ Cussons’ distribution network and, 120
smartcard manufacturing and, 116–117
smartphone features and, 116
insurance companies, 85–86, 90, 103
Intel, 108
international companies. See multinational companies
International Monetary Fund, 161
internet
Africa’s lag in penetration of, 77
as catalyst for economic growth, 76–77
e-commerce costs and, 26
investment
Chinese-owned companies and, 138
diversification strategy for volatility and instability in, 144
foreign direct (FDI), 9, 74, 137–138
infrastructure development and, 63–64
in Jumia e-commerce site, 26, 76
last-mile digital connectivity and, 78
local partnerships for guidance in, 104–105
long-term approach to, 138
mining and, 74
investment companies, 23, 56, 67
Ivory Coast. See Côte d’Ivoire
Jepkemboi, Stellah, 165
job creation
agriculture and, 68
corporate growth and, 33
double manufacturing output and, 50
entrepreneurs and, 27
midsized companies and, 23
Johannesburg, South Africa, 16, 64
Jumia (e-commerce site), xiv, 47, 75, 185
size of African investment by, 31
talent development by, 166, 169
Kaberuka, Donald, 40–41, 106, 107, 147, 148
Kellogg Company, 104, 111–112, 120
Kenya
Africa Tech Challenge in, 166
annual GDP per capita of, 96
banking in, 28
Coca-Cola’s expansion into, 95
electricity supply in, 60
Equity Afia medical centers in, 131
Equity Bank in, 112–114, 121–122
Generation youth skills program in, 156–157, 164–165
horticultural exports of, 69
hospital diagnostic equipment in, 66
industrial clusters in, 108
investment in manufacturing in, 53
local languages in, 118
M-Kopa’s penetration in, 127–128
mobile money service in, 125–126, 128
railway construction in, 61
Saham Finances’ expansion into, 90
as stable grower, 143
Subway restaurant employment in, 163–164, 164–165
Kigali, Rwanda, 43
Kilimall (e-commerce site), 47
Kwesé (media business), 184
labor costs
Africa versus China for, 55
Chinese-owned companies and, 53
flying geese paradigm for, 55–56
labor-intensive products, 55
Lagos, Nigeria, 8, 43–44, 65, 95, 98, 99, 102, 160
leaders
business objectives and social purpose intertwined and, 185–188
community involvement of, 184–185
companies’ use of local teams of, 88, 90, 102, 151
development and training of, 132, 151, 170–171
engagement of local leaders, 74
meaningful transformation by, 187–188
need for gender diversity in, 172–174, 175
Liberia, 65–66, 90, 96, 100, 101
Lions on the Move (Roxburgh), xiii, 11, 50
long-term view of business, 135–139
Ma, Jack, 58
manufacturing businesses
Chinese-owned manufacturing firms’ percentage of, 53
flying geese paradigm for, 55–56
greenfield hubs in, 23, 49–50, 107
Hawassa Industrial Park, Ethiopia, for, 49–50
import substitution and, 50, 52–54
labor-intensive products and, 55
long-term view in starting, 134–135
manufacturing hubs in, 49–50, 53, 57
opportunity to double output in, 50, 51f
skilled labor force needed in, 57–58
special economic zones for, 107–108
manufacturing plants
aluminum-can, 52
investment in, 23
textiles, 150
Mara Corporation, 136–137, 158
marketing
of Indomie instant noodles, 119–120
multinationals’ local partnerships for, 104
SABMiller’s approach to, 5
markets
Coca-Cola’s distribution in, 105
Coca-Cola’s product offerings tailored to, 95–96, 101–103
digital technology for access to, 75
economic growth and changing consumption patterns in, 96, 97f
expectations for growth in, 12, 13f
geographic mapping needed for, 85
longer-term view on consumers in, 48
online. See e-commerce
partners for last mile delivery in, 105–106
prioritizing, in strategy, 89, 95–100
regional integration and trading blocs of countries and, 15–16
satellite television pricing and, 122–123
small-scale farmers’ access to, 70
Mars, 69
McKinsey & Company, ix, xiii, xvi
African offices of, 16–17, 160
African Stability Index of, 141–143, 142f
African Visa Openness Index and, 16
bribery attempt and, 153
Generation youth skills program and, 156
global citizen survey of, on optimism for next generation, 12
global banking database of, 121
percentage of women at, 175
Strategy Practice of, 29
Women Matter initiative of, 171, 174
McKinsey executive survey replies
on African workforce expansion, 157
on Chinese-owned companies’ investments in Africa, 138
on corruption, 153
on digital and mobile technologies, 123, 125
on diversification strategies, 138, 139
on finding and hiring workers, 157, 166, 167
on growth markets, 98
on internal training programs, 169
on local knowledge sources, 149
on long-term view, 137
on opportunities in megatrends, 38
on revenue increases and profitability, 122
on supply chain integration, 144
McKinsey research
on cereal production, 68
on consumer spending, 45
on demand for electricity, 61
on diversity and women employees, 172
on Ethiopia as attractive country for sourcing opportunities, 107
on expansion strategies, 91–92
on export revenue, 55
on gender diversity, 172
on high-growth companies, 33
on internet-related services, 76–77
on internet use and companies’ growth, 77, 79
on long-term approach, 138
on midsized companies’ job creation, 23
on multinationals with pan-African businesses, 86–87, 87f
on natural gas market growth, 71
on picking geographic and industry trends, 30
on profitability and corporate strategy, 29, 30
on public transportation and urban development, 65
McKinsey Global Institute (MGI), xiii, 11, 62, 162
meat supply companies, 45, 146
medical center network, 131
MeTL (Tanzanian conglomerate), 146, 148, 149–150
Mitsui, 68
background to founding of, 126–127
consumer data collection by, 128
diversification and, 140
second purchases in, 127
solar-power kits from, 127–128
Mlambo-Ngcuka, Phumzile, 174–175
mobile payment services (mobile money services; mobile transfer services), 92, 132
Equity Bank’s efficiency using, 131
Jumia e-commerce site’s use of, 76
M-Kopa’s solar-power kits with payments using, 125–131
M-Pesa in Kenya for, 125, 126–127
number of active users of, 78, 78f, 125–126
Paga in Nigeria for, 132
mobile phones
economic impact of, 79
growth in number of, 17
mobile technology
as biggest business opportunity, 125
economic growth and, 123–125, 124f
infrastructure expansion needed for, 77–78
productivity gains from using, 79
projected increase in data traffic on, 77
rapid adoption of, as growth trend, 40, 75–79
Mombasa-Nairobi Standard Gauge Railway, 61
money transfer services. See mobile payment services
Moore, Jesse, 126–127, 128, 140–141, 179
automotive industry in, 50, 54, 58, 107
financial services firms in, 85–86, 91, 161
higher-value crops in, 69
industrial acceleration plans of, 54
phosphate mining and fertilizer production in, 74
skilled entry-level workers in, 162
smallholder farm crops in, 69
special economic zones in, 107–108
as stable grower, 143
Mozambique, 70, 71, 95, 143, 146
mPedigree Network, 131
M-Pesa (mobile money service), 125, 127–128
MTN (mobile phone company), xiv, 17, 26, 60, 76, 148, 167, 186
multinational companies
local knowledge used by, 149
pan-African business strategy of, 86–87, 87f
partnerships with local companies by, 104
percentage of, in Africa, 20
Mwangi, James, 112–113, 114, 118, 121, 129, 131
MyDawa, 47
Nairobi, Kenya, 8, 41, 46–47, 62, 65, 99, 108, 118
Nampak, 52
natural resources development. See also gas industry; mining; oil industry
Africa’s GDP growth and, 11
companies’ expansion strategy in, 99–100
investment increases in, 12
Neotel, 103
Nestlé, 45
Newton-King, Nicky, 158
Nigeria
agricultural lending in, 70
aluminum-can manufacturing in, 52
barriers to business in, 134
cities with more than 5 million inhabitants in, 41, 42f
Coca-Cola’s expansion into, 95, 103
competition in, 27
consumption patterns in, 96, 97f
Dangote businesses in, 27–28, 133–134, 138–139, 152
digital payments in, 35–38, 148
distribution networks in, 120–121
driver’s license processing in, 117
ease of doing business in, 14, 185–186
electricity supply in, 60, 62, 63, 134, 147
fertilizer industry in, 134
food companies in, 111–112, 119–120, 144
GE’s businesses in, 151–152, 185
GE’s support for infrastructure development in, 62–63, 152, 185
government policies in, 134, 148
Hero brand beer developed in, 5–6
Indomie instant noodles marketing in, 119–120
Lagos’s urban planning and, 43–44
local languages in, 118
long-term view of starting businesses in, 135–136
mobile payments company in, 92, 132
oil price collapse and, 11, 28, 143
online retailers in, 78
optimism of citizens of, 12
Paga mobile money transfer service in, 92, 132
petroleum industry in, 134
population of, 85
risks in, 134
rubber production in, 100
Saham Finances’ expansion into, 90
smallholder farms in, 67
smartcard manufacturing in, 116–117, 148
sugar refinery project in, 136
as vulnerable grower, 143
Nigerian Breweries, 52
Obama, Barack, 64
OCP, 74
oil industry
Africa’s GDP growth and, 11
companies’ expansion strategy in, 99–100
new sources of growth in, 71, 72
price collapse and, 11, 28, 71, 90, 143
retail distribution network for, 71–72
Okonjo-Iweala, Ngozi, 136, 150, 151
online payments. See mobile payment services
online sales. See e-commerce
Paddock, Sam and Rob, 130
Paga (mobile money transfer service), 92, 129
palm oil production, 100, 104, 150
pan-African companies
Coca-Cola as example of, 87–88
geographic expansion using, 86–87, 87f
pan-African expansion as business strategy, 86, 91, 92, 103
talent strategy as key part of, 161, 170
partnerships
business objectives and, 105
expansion strategy using, 94
GE’s health-care products and, 66
infrastructure development using, 65–66, 44, 147
Kellogg’s use of, 111
last mile delivery using, 105–106
multinationals’ use of local companies as, 104
palm oil production and, 100
payment services. See mobile payment services
petroleum industry. See oil industry
Peugeot, 54
pharmaceutical companies, 17–18, 105, 131
Poignonnec, Sacha, 24–26, 75–76, 166, 169, 185
political volatility, 7, 11, 28, 73, 89, 95, 137, 141
Port Harcourt, Nigeria, 95, 99
population growth
in Africa, 4, 8, 9, 12–14, 40–41, 85
Power Africa program, 64
primary schools
average time spent in, 157
marketing campaign in, 119
state-funded private operators of, 66
profitability
business opportunities, 7, 27–28
creating products and services for unmet needs and, 115
efficiency improvements and, 122
geographic and industry trends and, 30
McKinsey’s research on corporate strategy and, 29–30
Prudential, 9
Public Investment Corporation (PIC), South Africa, 104–105
PZ Cussons, 120
regional markets
broad or narrow focus in expansion into, 91–93
government policies to integrate, 15–16
community involvement to build trust and, 151
companies’ relationship with governments and, 151–152
corruption issues and, 152–154
dealing with shifts in, 148
ease of doing business and, 14–15, 147, 185–186
expansion strategy and, 93
local managers and leaders and, 151
MeTL’s example of staying ahead of, 148, 149–150
mining and, 100
multinationals’ use of local board members for, 149
Dangote Group’s businesses as example of, 135–136, 137–138
diversification in, 135, 144–147
four cornerstones of, 32f, 135
integrated supply chain in, 135, 144–147
local context and government relations in, 135, 147–155
strategy for building in business models, 32, 132–154, 183
restaurant chains, 163–164, 165
retail
expansion strategies in, 92
Indomie instant noodles marketing in, 119–120
online sales in, 25
unmet demand and outlet expansion in, 25
risk
African Stability Index on, 141–143, 142f
diversification strategy and, 94–95, 139–141, 142f
infrastructure development and, 63
long-term thinking and, 144
manufacturing success and, 52, 56
natural resources development and, 73, 74
road building
data-driven solutions in, 75
Lagos, Nigeria, government and, 43
private sector construction in, 63
SABMiller breweries and, 147
Rocket Internet, 76
rural areas
e-commerce in, 76
Equity Bank’s agency banking model and needs of, 118
infrastructure expansion needed for digital access in, 77–78
M-Kopa’s solar-power kits for, 127–128
mobile money services in, 125
shift to urban economy from, 41–43
business environment improvements in, 15
cluster of suppliers and business partners in, 106
ease of doing business in, 15
economic growth of, 96
Saham Finances’ expansion into, 90
satellite television in, 122–123
as stable grower, 143
urban infrastructure in, 43
brewery-building program of, 5, 31
diversification by, 139
geographic diversification by, 139
internal infrastructure of, 147
local brands built by, 5–6, 31
local brewery acquisition by, 5
recognition of African business opportunity by, 4–5, 31
size of African investment by, 31
success of, 4
talent development by, 170
winning mindset of, 7
Safaricom, 125
Saham Finances
acquisitions by, 103
expansion strategy of, 88, 93, 94
talent strategy at, 161, 169, 170
Sanlam (insurance company), 86
SA SME Fund, 186
schools
entry-level job applicants from, 160
job shortages and underperformance of, 157
marketing campaign in, 119
state-funded private operators of, 66
Singhal, Deepak, 112, 115, 119–120, 154
skilled labor force
entry-level workers in, 162, 163
Generation youth skills program and, 156–157, 158
manufacturing’s need for, 57–58
training programs and, 160–161
vocational skills and, 162–166, 163f
slow-grower countries, 143
small and medium-sized enterprises (SMEs)
economic development and, 23
internet benefits for, 77
smartcard manufacturing, 116–117
smartphone manufacturing, 116
social development
African-led private sector and, 27
internet-related services as catalyst for, 77
social purpose
business objectives intertwined with, 185–188
LafargeHolcim’s cement products and, 116
social responsibility
business philosophy and, 188
investment in local communities and, 74
social compact to solve social and economic challenges and, 187
society, companies’ holistic view of, 187
solar energy kits, 60, 125–126, 127–128, 140, 179
solar-power industry, 76
Somalia, 88
South Africa
aluminum-can manufacturing plant in, 52
annual GDP per capita of, 96
automotive industry in, 50
banking in, 28
Coca-Cola’s expansion into, 95
companies’ difficulties filling jobs in, 157
companies’ growth opportunities in, 98
consumption patterns in, 96
Dangote Cement company in, 134
economic growth of, 11–12, 186
electricity supply in, 60
employment issues in, 157, 186
labor costs in, 50
McKinsey’s first African office in, 16
number of big firms in, 20, 21f
SABMiller’s beer brand in, 6
skilled entry-level workers in, 162
as slow grower, 143
women board members in, 172
youth employment in, 165
Southern Africa, mining in, 73
Southern African Development Community, 15
special economic zones (SEZs), 107–108
stability of African countries
index measuring, 141–143, 142f
political volatility and, 7, 11, 28, 73, 89, 95, 137, 141
stable-grower countries, 143
StarTimes (broadcasting company), 122–123, 170–171
startups
cross-border expansion by, 139
health-care opportunities for, 129
Nairobi’s tech ecosystem and, 47, 108
broad or narrow geographic focus in, 91–93
clusters of suppliers and business partners in, 106
Coca-Cola’s expansion approach in, 87–88, 89–90, 102–103, 105
creating products and services for unmet needs and, 115
defining how to achieve scale and relevance using, 89, 101–103
four navigation tools for, 32, 88–89
geographic mapping needed in, 85
home market expansion first in, 92
identifying and building ecosystem needed for, 89, 103–109
industry clusters (hubs) and, 106–108
location decisions in, 106–107
long-term focus on tomorrow’s growth markets in, 96–97
multinationals with pan-African businesses as, 86–87, 87f
partnerships in, 94, 103, 104, 105
prioritizing markets in, 89, 95–100
risk diversification in, 94–95
Saham Finances’ geographic expansion in, 85–86
setting a clear aspiration to guide, 89–95
size (land area) of Africa and, 83, 84f
sub-Saharan Africa
internet growth in, 77
mobile money accounts in, 78, 78f
Saham Finances’ strategy in, 86
Subway (restaurant chain), 163–164, 164–165
sugar production, 133, 134, 136, 144
Sun, Irene Yuan, 55
supermarket chains, 17, 45, 47, 102, 146–147
supply chains
backward integration of, 120, 144
business clusters and, 106
companies; electric power and water supply infrastructure for, 147
Dangote Group’s example of, 144
examples of integration of, 146–147
Indomie instant noodles distribution and, 120
multinationals’ local partnerships for, 104
resilience from integration of, 135, 144–147
Sustainable Development Goals, UN, 187
TA Associates, 36
brain drain and shortage of, 157–158
companies’ support for women’s advancement and, 162, 174–175
diversity and profitability and, 172–174, 173f
education underperformance and, 157
examples of recruiting and interviewing, 163–165
Generation youth skills program and, 156–157, 158, 164–165, 176
geographic mobility in, 170
internal processes for growing, 162, 166–167
SABMiller’s international program in, 170
Saham Finances’ strategy for, 161, 169, 170
skills shortages and, 157
three imperatives for unleashing, 32, 33, 162
training programs and, 160–161, 165–166
vocational skills and, 162–166, 163f
women’s participation and, 162, 171–176
working-age population and, 40, 158–159, 159f
Tanger Automotive City, Morocco, 107–108
Tangier, 107
Tanzania, 5, 55, 95, 97, 123, 125, 134, 139, 140, 143, 146, 149, 150
technology. See also digital technology; mobile technology
as biggest business opportunity, 125
economic growth and, 123–125, 124f
Jumia e-commerce site as example of success of, 75–76
productivity gains from using, 79
rapid adoption of, as growth trend, 40, 75–79
Tecno, 116
television sets, online sales of, 126–127
textile hubs, in Ethiopia, 49–50, 53, 107
textile industry, 49, 146, 150
Thakkar, Ashish J., 136–137, 158
Tolaram Africa, 104, 111–112, 114, 115, 119–120, 132, 147
toll bridges and toll roads, 63
Tony Elumelu Foundation, 27, 186
training
for entrepreneurs, 27
internal processes for growing, 166–167, 168f
SABMiller’s international program in, 170
for skilled labor force, 58
talent development and, 160–161
vocational skills and, 162–166, 163f, 165–166
transfer services. See mobile payment services
Transparency International, 153
Tripartite Free Trade Area, 15
2U (educational technology company), 130
Uber, 122
Uganda, 95, 125, 126, 140, 146, 166
UN-Habitat, 116
United Bank for Africa, 27, 186
Economic Commission for Africa of, 57
Sustainable Development Goals of, 187
US Department of Agriculture, 69
universities
GE’s support for curriculum development at, 185
job applicants from, 160, 170–171
online courses in, 130
urbanization. See also cities
challenges to cities from, 43–44
growth strategy focus and, 98–99
income and wealth disparities and, 46–48
infrastructure investment and, 43, 44
longer-term view on consumers and, 48
population growth in cities and, 41, 42f, 43
shift from rural economy and, 41–43
working-age population increase and, 40–41
Verheijen, Danladi, 52
Verod Capital Management, 52
visa requirements, 14, 16, 186
vision
Coca-Cola’s strategy with, 89
Saham Finances’ strategy with, 90
vocational skills, 162–166, 163f
vulnerable-grower countries, 143
Wanjohi, Ng’ang’a, 105
Washington, Brooks, 23, 56, 169
West Africa
air travel connections in, 19
consumption growth in, 96
Dangote’s growth in, 134
mining in, 73
palm oil industry in, 100
rubber-production facilities in, 17
Saham Finances’ expansion into, 90
Tolaram food products in, 111, 115
Wilmar International, 100, 104
women
companies’ support for advancement of, 162, 174–175
diversity and profitability and, 172–174, 173f
empowerment programs for, 174
percentage of positions held by, 171–172
World Bank, xiii, 12, 14, 23, 108, 123, 185
World Economic Forum, xi, 16
Zambia
Africa Tech Challenge in, 166
annual GDP per capita of, 96
Dangote Cement company in, 134
SABMiller’s brewery in, 6
as vulnerable grower, 143
Zimbabwe, 88