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Market entry project

SOTM November. Market entry project for a US communication company

africon was contracted to carry out a market assessment and recommend a suitable Africa strategy for a major international player in the two-way radio communication industry. The project had 7 countries of focus where a total of 184 interviews were conducted with the relevant players in the industry. The results concluded from the analysis of all interviews and market data was clear; South Africa dwarfs its counterparts in terms of market size and market maturity. Nigeria, Kenya and Angola on the other hand offer the greatest potential going into the future. Quality was found to be the key determining criteria for consumers when purchasing two-way radios. This is mainly due to fact that main users of two way radios tend to be in critical sectors where quality cannot be compromised including law enforcement, private security, mining, oil and gas. Customers in this sectors are willing to pay a premium for the guarantee of a reliable products. Africon can provide value to other radio communications companies by evaluating the market potential for their product, analyze the value chain and identify suitable distribution partners in the key market in sub Saharan Africa

africon consulting

africon carried out a successful market entry strategy in a new industry.

africon was contracted to carry out a suitable go-to market Africa strategy for a major international player in the two-way radio communication industry (LMR). The project covered 7 countries where a total of 184 interviews were conducted with relevant players in the industry. The results concluded from the analysis of all interviews and market data was clear; South Africa dwarfs its counterparts in terms of market size with at market of more than 30 mio Euro. Nigeria, Kenya and Angola on the other hand offer the greatest growth potential going forward. Quality was found to be the key determining criteria for consumers when purchasing two-way radios. This was due to fact that the main users of two-way radios use them in critical situations where quality cannot be compromised including law enforcement, private security, mining, oil and gas. Customers in these sectors are willing to pay a premium for the guarantee of a reliable products. These still hold a market share of more than 80% compared to cheap products from China. Another finding has been that local system partners are key to success where africon identified more than 30 locally in key markets

neue Büro

africon GmbH has founded a new branch in Bremen

New year, new places: africon GmbH has decided to establish a broader regional presence and therefore opened a branch in Bremen’s heart on January, 1st, 2018. Right next to the Bremen Town Musicians is africon’s office:

in the Carl-Ronning-Straße 1, 28195 Bremen.

In Bremen sits the administration with focus on accounting, personnel administration and general administration.

Your prinicipal contact in Bremen is our Administrative Manager Karolin Heinrich.


 

Slide of the month September – Woodworking machinery importation

During a recent project conducted by africon with focus on the wood working machinery market in Nigeria, africon GmbH identified 107 furniture manufacturing companies and 14 machine distributors focusing specifically on the furniture manufacturing market.

By holding expert interviews with a big number of manufacturers and distributors it became quite clear that the furniture manufacturing sector in Nigeria is very much quality oriented when it comes to purchasing machinery. This stands in contrast to many other industrial sectors that are clearly driven by price when it comes to purchasing e.g. in the steel industries.

The slide of the month August 2017 shows that during economically difficult periods price is starting to become the underlaying factor even though quality is still considered to be very important. Therefore, the countries exporting high quality machinery have lost a big market share to countries exporting low price machinery. Consequently, it would be important for high quality machinery suppliers to widen their portfolio containing a lower priced machine that still meets all basic quality requirements.

 

Marc Zander, Partner of africon presents in Sweden

Doing business in the Middle Eastern and African region delivers results when you have the right information and tools at hand. Marc Zander, Partner at africon spoke in Sweden on the set up of distribution in Africa. At the MEA Summit visitors got the chance to directly engage with prominent business leaders and industry experts with extensive experience from doing business in the region.

MEA Summit is Sweden’s largest business event geared towards the MEA region, delivering insights, tools and clues as to how market transformation in the region will place future demands on business innovation. During two days in Stockholm, participants engaged in presentations from world-renowned speakers, panel discussions and interactive workshops with top executives and industry experts as well and met with an estimated 200 other Swedish companies who share your interest in the region.

 

 

Cédrick Lukusa participates in panel of Africa Business Forum in Cologne

Cédrick Lukusa, Principal at africon participated as panalist in the 5th Africa Business Forum. Within the discussion on Africa Mr. Lukusa shared insights of ongoing projects, news on latest company Africa strategies and shared sector insights related to the steel and aluminium industry.

The Forum brought together government, business and finance leaders from acrooss Africa and Germany/EU to explore how the can work together in finding and leveraging business opportunity.

 

The forum has organized in partnership with the Association of German Family-Owned Businesses BJU/ASU -http://www.familienunternehmer.eu- and Africa 2.0 -http://www.africa2point0.org.

The target was to establish business partnerships via engagement and business exchange between African and German/EU companies and entrepreneurs. Thanks to the strategic support of the German Chamber of Commerce and the Federal Parliarment, the forum has an extensive outreach which includes the 4000  members of the Die Familienunternehmer.

 

“Germany Touts Africa Investment as Signature Issue at G-20 Meeting”

A new approach to foreign investment and aid in Africa by the world’s richest nations is being called for by Germany’s chancellor, before she hosts a meeting of the world’s 20 wealthiest nations next month. The so-called “Merkel plan” calls for more investment in Africa, as a way of stemming African migration to Europe. Marc Zander, CEO of africon was asked by VOA News from America to comment on the current interest of German companies on Africa. Read the full Article.

 

Marc-Peter Zander in the interview with Forbes Afrique

Marc-Peter Zander,

PDG du cabinet Africon

A la tête d’Africon, un cabinet qui conseille les entreprises allemandes souhaitant s’implanter en Afrique, Marc Zander figurait dans le panel des intervenants du Germany-Africa Business Forum, qui s’est tenu fin mars à Francfort. Pour Forbes Afrique, il évoque les opportunités d’affaires qu’offre le continent, tout autant que la grande prudence des investisseurs allemands. Morceaux choisis.

PAR PATRICK NELLE

(Marc-Peter Zander,
CEO of africon
At the head of africon, a company that advises German companies that want to settle in Africa, Marc Zander presented himself to the trade fair participants of the Germany-Africa Business Forum, which was held in Frankfurt at the end of March. For Forbes Africa, he discusses the business opportunities offered by the continent as well as the caution of German investors. Excerpts.
BY PATRICKNELLE)

Find the original articel here Read more

africon in “Märkte weltweit”

africon has published its slide of the month in the economic daily paper “Märkte Weltweit”. In the article, difficulties of doing market research in African countries are underlined and an “African approach” is presented. This has been illustrated on the example of a big IAM automotive aftermarket study.

German investors are still cautious when it comes to the African market. Differences in culture and doing business are big and scare many companies. Corruption and the importance of the black market seem to be unmeasurable. For these reasons, African business seems to be unpredictable. However, the africon article shows that extensive research on the ground can complete lacks in traditional statistical studies. The slide of the month that was published in “Märkte Weltweit” indicates that about 59 % of the spare parts in automotive aftermarket in Nigeria come from the open market. In order to raising reliable numbers, africon visited about 150 workshops and interviewed 48 experts as well as 500 consumers. Also, we created our own data base on the existing automotive brands evaluating more than 12 500 photos of the cars in Nigeria’s streets. That’s what we call an African approach for a study on the African market. And that is the reason why the regional knowledge and presence on the ground are that important when it comes to business in Africa. For a market entry, German companies should have partners with a very good knowledge of the African continent by their sides. That is one of the strengths of africon.

Slide of the month November – Steel industry and governmental decisions

While the slide of the month October showed an increasing demand of steel in African countries, the slide of the month November analyses the government’s role in steel projects. A serie of 101 interviews with executive managers in the steel industry showed, that in countries having an incentive program for steel projects, politicians have real influence on the sector’s decisions. Politics and economy can be linked strongly in these countries, a factor that must be considered when choosing geographical centers for the market entry of your company.

 

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