Africa’s market expansion services growth opportunities

Posted on September 5, 2014 12:29 am

Mobile market expansion services will drive sub saharan Africa’s mobile commerce, according to a report by a telecom consultant and market expansion services. While traditional sales channels continue to dominate and mobile commerce still only accounts for less than 10% of total sales in the region, companies are increasingly recognising that digitisation is the way to go. ICT sector currently accounts for 20 % of most developed African countries gross domestic product.The aim is to grow this to 30% by the year 2020, according to the researcher. In the report that I have managed to obtain a copy, which focuses on the transformation of business process in sub saharan Africa through digital technologies, reveals that the major driving force for growth will depend on mobile commerce and also the smart infrastructure as well as business intelligence. Business intelligence in the form of big data analytics will help consumers to compare prices and online retailers to analyse customer behaviour as the case in England’s premier football competition. Researchers estimate that half of all smartphone users will be mobile shoppers in the next three years, which is quite a large number in this continent where smartphone penetration stands at about 20%.

In countries like Nigeria, South Africa and Mauritius, smart infrastructure technology, such as cloud services, automation and mobile payments in countries like Uganda, Kenya and Tanzania are playing an important role expected to drive growth.Sadly, plenty of traditional brick-and-mortar companies lack the resources and capabilities to drive a digital expansion strategy themselves, and this is where companies that offer market expansion services. There is no doubt market expansion service providers in Africa are operating along the entire value chain. Others are offering marketing, distribution and logistics to support not just brick-and-mortar outlets, but also online sales and services like its happening in East African region.Overall the industry is projected to achieve an average growth rate of 18% by 2016, where the total market size of the industry is expected to reach US$15 billion.

Contador Harrison