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The rhetoric of building “X for Africa” implies one has to capture the entire continent in order to build a valuable business. Africa is home to 400 companies earning revenues of $1 billion or more, and nearly 700 companies with revenue greater than $500 million. None of them are in all 55 countries. While the opportunity in Africa is evaluated as the sum of her countries, each country represents a different market with its own local context . Most business models will need to adapt in some form when they enter a new market. This could mean looking at a different set of primary customers, adapting to different cultural norms or pivoting the product entirely to adhere to local regulations. Local context creates friction for companies looking to expand beyond one primary market. But it also serves as a moat for companies based in that market. The high friction expansion process is creating a ripe environment for market consolidation. This is further catalyzed by increased competition, ... Full story

5 March