trendwatching.com's 2014 06 utilit-easers

UTILIT-EASERSHow utilitarian brands are easing the strain of everyday life in Africa.

AfricA TrEND BULLETiN

June 2014

Many Africans have had enough!

Africans, like their global counterparts, lead busy,

busy lives. And the disruptions that occur when

basic services don’t work means that many are

happy (as well as increasingly able) to spend on

products and services that make everyday life

faster and easier.

Now, they’re looking to innovative brands and

entrepreneurs to step up, and start improving

local services and systems. And as the continent

continues to develop, this desire to engage with

such brands – plugged into their localities and

equipped with a broader purpose to do good –

only intensifies.

Rising numbers are unwilling to accept unreliable utilities and lack of basic infrastructure.

UTiLiT-EASErSwww.trendwatching.com/trends/utilit-easers 2

Almost one in two people in sub-Saharan Africa report having paid a bribe in the last 12 months when interacting with key public

institutions and services.THE AFRICAN DEVELOPMENT BANK, MAY 2014

UTILIT-EASERS | Utilitarian brands that are easing the lives of Africans by saving them time, putting them in control, and enabling consumer independence. These brands are ultimately bridging the gap between basic infrastructure and the burgeoning expectations of citizens across the continent.

DEFINITION

Since 2005, a net 8 million people in Africa have moved out of poverty.

THE AFRICAN DEVELOPMENT BANK, MAY 2014

Three forces are driving UTILIT-EASERS into the mainstream in 2014:

Industry, government and archaic institutions

just aren’t delivering.

Startups and industry giants are finally

innovating to meet consumer expectation.

Today, everyone aspires to best-in-class

products, services and experiences.

1. Increasing dissatisfaction

2. era of innovation

3. everyone wants in

Consumers are becoming more and more skeptical about the current offerings from big industry, government and archaic institutions. No longer willing to tolerate poor utility services and infrastructure, Africans are expecting brands to step in… And step it up!

1. Increasing dissatisfaction

Over half of sub-Saharan Africa respondents believe that their government is largely run by big entities

acting in their own best interests, instead of the public good.

From start-ups to conglomerates, organizations in Africa are finally realizing that in order to solve local challenges and meet new expectations, they need to innovate. That means new products, business models, service delivery ideas, and more.

2. Era of innovation

76% of Kenyans believe that becoming an entrepreneur is a desirable career choice.

OMIDYAR NETWORK, APRIL 2013

Today, the less prosperous are aspiring to own the best-in-class products, services and experiences. Even those living in rural areas will at least know about (if not have visited) nearby urban cities where the opportunities for consumption are endless.

3. Everyone wants in

In 1980, only 28 percent of Africans lived in cities. Today, 40 percent of the continent’s one billion people do. By 2030, that share is projected to rise to 50 percent, and

Africa’s top 18 cities will have a combined spending power of USD 1.3 trillion.

MCKINSEY, JUNE 2010

28%40%

1980 2030NOW

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So let’s have a look at the savviest UTILIT-EASERS and the various ways

they are serving African consumers.

UTILIT-EASERS AT HOME

FEATURED INNOVATIONS

Home life for consumers throughout the continent is still as challenging as it gets, with basic utilities unreliable and the regular

need to resolve domestic issues, too.

The household electrification rate in Africa stands at just 43%, leaving 600 million people without access

to electricity.THE AFRICAN DEVELOPMENT BANK, MAY 2014

600 million

UTiLiT-EASErS AT HOME

MTN Nigeria & Nova-LumosMobile home power station kit provides alternative solar electricity supply

DryBathSouth African waterless showering aid for those lacking access to clean water

FOUFOUMIXTogolese appliance quickly pounds tubers into foufou

M-KOPA SolarKenyan startup provides solar home systems via M-PeSA payment plan

UTILIT-EASERS OUT & ABOUT

From mobile devices to traffic jams, there’s a pressing need for innovations that make life less stressful, more convenient

and safer.

Road fatalities on the continent result in 225,000 deaths every year – about one-fifth of total fatalities

from road crashes worldwide.THE AFRICAN DEVELOPMENT BANK, MAY 2014

225,000 deaths

UTiLiT-EASErS OUT & ABOUT

CladLightKenyan smart-jacket reduces motorbike accidents

Rlg CommunicationsGambian solar-charging phone kiosks introduced in Ghana

Traffic Butternigerian traffic information app crowdsources updates

UTILIT-EASERS IN EDUCATION

Lack of teachers, schools, textbooks, learning resources – the list goes on: a big challenge for the continent, and a great

opportunity for UTILIT-EASERS.

Half of all African children reach adolescence without achieving literacy or numeracy.

UTiLiT-EASErS iN EDUcATiON

Via Afrika & Breadline Africaupcycled shipping containers converted into digital learning centers in South Africa

ObamiSouth African mobile tutor and student study platform

Beni American Universitynigeria’s first private online university

QurioFree academic scholarships in return for community knowledge transfer

UTILIT-EASERS FOR WORK & PLAY

Tools and services that improve work efficiency and enhance leisure time will forever be in demand.

Africa’s current working population of 600 million is set to double by 2040, overtaking both China’s and India’s.

2040NOW

UTiLiT-EASErS fOr WOrK & PLAY

Duma WorksKenyan website assists job-hunters

KeepodLow-cost ‘operating-system-on-a-stick’ first tested in nairobi

MallforAfricaShopping platform connects global e-tailers with nigerians

UTILIT-EASERS IN MONEY MATTERS

With the plethora of cash-only, informal markets and unbanked citizens, Africans still can’t get enough of UTILIT-EASERS that

tap into mobile banking, cashless transacting and microloaning.

The Nigerian Financial Inclusion Strategy (NFIS) aims to reduce the percentage of financially excluded adults in Nigeria

from 46.3% to 20% by 2020.CENTRAL BANK OF NIGERIA, JULY 2013

UTiLiT-EASErS iN MONEY MATTErS

NomaniniSouth African POS device announces expansion into Mozambique

LendicoOnline marketplace allows investors to directly fund the loans of South Africans

VeriFone & Teasy MobileCollaboration sees the expansion of mobile money services in nigeria

UTILIT-EASERS IN SICKNESS & IN HEALTH

Wellness is a fundamental human desire. Across the continent, the race continues to close the gaps between this desire and

available solutions.

Africans with diabetes: 12.1 million patients today, 24 million by 2030. Africans with cancer: 681,000 new cases

in 2008, 1.6 million new cases a year by 2030. Africans needing antiretroviral treatment (for HIV and AIDS): 7.5

million today, 30 million by 2022.

WORLD HEALTH ORGANIZATION, AUGUST 2013

UTiLiT-EASErS iN SicKNESS & iN HEALTH

Wireless ReachKenyan based technology intervention programme for HIV patients

Hello Doctor‘Doctor in your pocket’ app provides health information to South Africans

WinSengaugandan startup launches mobile phone-based fetal heart rate momnitor

Unjani ClinicsSouth African health organization launches ‘clinics-in-a-box’

NEXTA few things to consider for all you aspiring

UTILIT-EASERS...

Analyze how your customers interact with you

– from start to finish. Think about what you can

do to make their lives even easier. What extra

benefits will they appreciate? How can you

enhance their experiences and make them that

little bit more memorable?

Scrutinize everything

Of course the masses in Sub-Saharan Africa

still don’t earn much. But their expectations

are rising, and even their more affluent peers

yearn for relevant, effective solutions that are

affordable, too. Put all that together, and the

market size is undeniable.

BOP = TOPNEXT

For aspiring foreign uTILIT-eASeRS, consider

which issues are unique to the local market

you’re targeting and think about how you can

most pragmatically solve them. Want a hint?

See Huawei’s latest phablet (the Ascend Mate

2) that charges other devices.

Global brands: Get in!

If you’re a locally successful uTILIT-eASeR, why

stop there? If M-PeSA can target Romania’s

unbanked citizens, there’s nothing stopping you

from identifying similar markets outside your

locality, region, country or even continent!

Local brands: Get out!

One of the understated benefits of being a

uTILIT-eASeR is that it should ensure your new

products and services are created sustainably,

ethically and responsibly. If this is not the case,

then you may need to reconsider your strategy.

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PAUL BACKMANChief Client Officerpaul@trendwatching.com

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trendwatching.com's 2014 06 utilit-easers

african development

archaic institutions

work amp

basic infrastructure

south africansutilit

sickness amp

class products

amp

Business

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