by Shukuru Amos
There are few markets in the world with as much untapped potential for electric car adoption as Africa. The continent has a growing middle class, a rapidly expanding fleet of new cars, and an urgent need to reform its energy sector.
But can electric vehicles help solve these problems? Or is it not yet time for the electric car in Africa?
These are some of the questions that many auto executives and investors have been asking recently. After all, in other emerging markets such as China, India, and Latin America, sales of electric cars have surged thanks to government incentives and other support programs. In comparison, sales of electric cars remain very low in Africa — in part due to challenges with local production and lack of charging infrastructure.
With a population of around 1 billion people, Africa is one of the regions with the highest growth potential for electric vehicles. Here’s how it could help expand adoption.
What is holding back the electric car in Africa?
Despite several advantages — such as air pollution reduction and lower total cost of ownership — the electric car is yet to become as popular in Africa as in other emerging markets. One of the main reasons is a lack of support from national governments.
While several countries in Asia and Latin America have implemented ambitious plans to promote the electric car, African countries have so far been less active in this regard. Without clear support from governments, consumers are unlikely to embrace electric cars.
Another factor that might be holding back the electric car in Africa is the lack of local production facilities. Most of the electric vehicles sold in Africa are imported from Europe and the US — and this could significantly increase the costs of EV ownership.
Finally, the lack of charging infrastructure is another significant obstacle to the wider adoption of electric cars in Africa.
In some countries, such as Nigeria, there is simply no charging infrastructure at all. In others, such as South Africa, charging stations are starting to appear. But in most African countries, there are not nearly enough charging points for electric cars to become mainstream.
Improving local manufacturing capacity
The lack of local manufacturing capacity is one of the main barriers to the wider adoption of electric cars in Africa. To increase the number of EVs on their roads, countries need to build a local market for electric cars. This requires the government to invest in R&D to create a local supply chain for EV parts and build a network of charging stations in cities. For example, the government of Tanzania is actively pursuing this strategy to promote electric cars. It is supporting the development of local charging infrastructure, including partnerships with private companies.
The government of Tanzania is also helping companies to set up R&D facilities in the country, to help local businesses to produce batteries and other EV components. This approach should help to reduce the costs of EVs and encourage more people to buy them.
The government of Rwanda is another country actively promoting electric cars. It recently built a factory that produces batteries for EVs — and plans to ramp up production to 10,000 units per year by 2020. These are significant steps that could help Rwanda to expand its fleet of EVs from a few hundred to several thousand units shortly.
It’s worth noting that similar efforts are underway in several other African countries, including Ghana, Kenya, Botswana, Morocco, and Nigeria. So, there is a good chance that we will see more electric cars on the streets of African cities in the next few years.
Enabling infrastructure
Another challenge to the wider adoption of electric cars in Africa is a lack of charging infrastructure. Many African countries have no or very few charging stations. This could significantly hamper the growth of the electric car market and prevent consumers from switching to cleaner modes of transport.
To encourage consumers to buy electric cars, governments need to invest in setting up charging infrastructure. Some African countries are already actively working on this. For example, Kenya is building a network of charging stations at various points along the country’s main roads.
In addition, Kenya is also working with the UN to launch a program for charging stations across Africa. Other countries are also making efforts in this direction. For example, Nigeria is also building a network of charging stations, and Mali is expected to have a charging station in each of its largest cities. These are positive trends that could help to grow the electric car market.
Environmental benefits of electric cars
Finally, the growing adoption of electric cars is expected to improve air quality in major African cities. The emissions from gasoline-powered cars and other vehicles have been identified as one of the major sources of air pollution in many African countries. They contribute to the rising number of respiratory and cardiovascular diseases in the region, which led to 2.7 million deaths in 2016.
Boosting the number of electric cars on the road could thus help to improve air quality in African cities. This would in turn help to reduce medical costs and improve the quality of life in many African countries. Also with EVs adoption, Africa could be joining global forces to curb climate change, which affects the continent the most.
Summing up
In many ways, Africa is the ideal market for electric cars. The continent has a growing fleet of new cars, a rapidly expanding middle class, and a pressing need to reform its energy sector. And while many African countries are yet to embrace the electric car, there are several reasons to expect a rise in EV adoption shortly.
Local governments are taking steps to boost R&D and infrastructure, while businesses are making efforts to produce more affordable EVs. When it comes to the electric car, Africa has all the potential to become the next big thing.
by Shukuru Amos
African startups founded by whites may be winning the funding and PR game, but the local market (which these founders are dimly aware of) delivers the final judgment.
As for Kune Food, the markets have spoken. The startup did not do its homework. Kune Food started off on the wrong foot when its founder tried to come up with a false narrative that he launched the startup after failing to get affordable ready-to-eat meals in Nairobi. A blatant lie that immediately backfired on social media. Kune Food later apologized but the damage was done.
To me, if the problem statement was based on a lie, then Kune Food was a dead startup before it even launched. The only reason it even managed to go that far is because of a white founder. The startup overlooked a lot of market realities.
Starting with the food pricing; If you ask salaried guys in Nairobi or Dar es Salaam whether they are willing to spend $3 per meal, these are common replies you would get:
“Bro, spending $3 on a single meal is a once-in-a-while thing for the majority of us”
“If you are looking for repeat business, try to innovate something around Mihogo or Mandazi”
“Three dollars on one meal? That’s two meals at Mama Aisha’s eatery”
You may argue that the price was not an issue, which may be true. After all, Kune Food sold more than 55,000 meals and acquired more than 6,000 individual customers and 100 corporate customers. So the price was not an issue, right?
My contention is that it is easy to be fooled by first-time orders coming in droves based on the marketing hype you have done. But as soon as people start seeing the hole you are digging into their personal finances with that $3 per meal, they go back to Mama Aisha. You are easy to replace.
Another major challenge that led to their demise is a logistics issue. A B2C startup with a delivery component in Africa is destined to fail. It is not about fancy slogans with nice apps and a great e-commerce website, the real deal is logistics. Maybe it works in South Africa but in other places, the cost of running such a business is too high.
All of these of course could have been addressed if Kune Food did their homework. Not everything that looks like a business is a business. More importantly, people do not use a tech-based business for the sake of “tech”. So nice apps and websites do not work if you don’t bring new value from what people are already getting.
The lesson from Kune Food’s collapse is that we should not do our ROI and feasibility studies while seated in fancy hotels. Go and talk to real people down the street. They have the answers. Avoid “peer-reviewed” market research papers. Talk to people.
Another lesson: be grateful your business is taking longer to grow. You can only break your business by trying to move things too fast. Kune Food was in a hurry to nowhere, the hiring spree was crazy, and the marketing hype was too flashy. It is always wise to take things slow.
Markets don’t care how many rounds of funding you have nailed. You may have that privilege to easily access funds but unless you have a solution people want, your days are numbered. Business is hard.
by Shukuru Amos
The job of marketers is to keep up with evolving marketing trends. We need to ensure that we remain updated about algorithmic changes, revise our advertising to adhere to new policies, and many more changes. We do all this over and over again so we can adjust our strategies to improve the outcomes for our clients and our own companies.
Unfortunately, not all trends work. Here are some of the marketing trends to watch in 2022, that we believe will actually
Focus on Mobile-first marketing
By 2025, an estimated 73% of people will access the internet on mobile-only. Always consider how something will appear on mobile devices. Try to use long, horizontal videos and images because they look best on mobile screens. Take advantage of app-exclusive features, such as audio posts and Fleets on Twitter; live video and Reels on Instagram, and Stories on YouTube and Instagram. Always focus on mobile-only features to create a more seamless experience for mobile users
Focus on Social Commerce
Social media has become the heart of the post-pandemic shopping experience. Platforms such as Instagram, Facebook, and Pinterest have given brands the opportunity to create a seamless experience for users to buy products directly within a social channel without being taken outside. Brands need to capitalize on the growing social commerce trend.
Brand and Creators collaboration
Brands and creators’ collaboration is an important marketing strategy marketers are expecting to use in 2022. Brands need faces and voices that can tell their message, values, and mission. Online content creators are best positioned to drive ROI for B2C brands. Creators have existing loyal communities that brands should creatively tap into instead of building a community from scratch.
Making Social Ads that blend in
Marketers need to intuitively understand a particular platform as a user, not just as a marketer. This will help in creating ads that do not interrupt people’s experience but seamlessly fit in. Today’s consumers are smarter and more empowered. Brands will have to think hard about whether they want to be embraced or tolerated on a particular platform.
Social media means business
Social media has finally matured to find its place in business. Marketers are not just raising awareness on social media but expect to derive tangible ROI from it. According to Hootsuite Social Trends 2022, 83% of marketers are confident about quantifying the ROI of social media. This was not the case over a decade ago when marketers struggled to measure ROI from social. But both the pandemic and social platforms’ advanced features have forced marketers to rely on social as it became a primary source to keep up with customers.
Building trust with first-party data
With the elimination of third-party cookies in 2021, marketers are turning to first-party data in 2022. Companies will focus on collecting data directly from their users for retargeting purposes. Online data about customer interaction on a website or an app will be collected through subscriptions, product views, and inside queries. In a world of growing privacy concerns, first-party data will enable businesses to operate in a privacy-compliance and cost-effective way.
The metaverse to enhance customer experience
Many businesses are expected to enter the metaverse in 2022 and years to follow. That is because the metaverse has mouthwatering promises to businesses, it is expected to bridge the gap between traditional and digital marketing. From improved customer experience to selling virtual products, and from virtual concerts and branded shops within games, the metaverse is everything marketers have ever dreamed of. Brands will be able to create virtual stores or exhibitions and people, through their virtual presence (avatars), will visit the stores and have an experience of the product just like they would physically.
It is important for marketers to understand the fluidity of marketing. New best practices and policies come and go, algorithms are getting smarter and harder to predict. Marketers must always be ready to discard their once working strategies in the face of new changes.
by Shukuru Amos
The eCommerce industry has seen a significant boost in the past two pandemic years. As people started spending much of their life indoors, online shopping became the norm. According to UNCTDA, global e-commerce has jumped to $26.7 trillion, as COVID-19 boosted online sales.
Despite this dramatic increase in online sales, the eCommerce industry is not without challenges. The following seems to be eternal challenges for online store owners.
D2C retailers are posing stiff competition
Your e-commerce business is running a risk to be in competition with the manufacturer and other retailers who sell directly to consumers. To avoid this to happen, try to look for manufacturers who are not selling their products directly to consumers. Also, try to offer a lower price and reward your loyal customers.
SEO is evolving and getting more complex
Search Engine Optimization has moved past keywords. Algorithms have gotten smarter and favours websites with great user experience. The old tricks of keyword stuffing and buying low-quality backlinks do not apply anymore. And that is not to mention voice search which is entirely a different SEO game for e-commerce businesses to brace for.
Carts are still being abandoned
It is incredibly frustrating to have managed to take the customer through the funnel only to lose them on a check-out stage. E-Commerce brands lose $18 billion in sales revenue each year because of cart abandonment. Mobile users have an even higher abandonment rate compared to desktop users. However, these challenges can be minimized with proper checkout optimization. First, understand what is going wrong and optimize accordingly.
Customers don’t want to read product descriptions, they want to see them
This is a very solvable challenge if the store is backed by advanced technology.
Customer Experience Opportunities for eCommerce Brands
Just as the pandemic helped to boost eCommerce sales, the industry is about to see another boost from the next iteration of the internet –the Metaverse. In the metaverse, customers will no longer be reading about product descriptions, they will see the product, feel it, and test it using their virtual avatars.
With the metaverse, e-commerce brands will be able to create virtual stores or exhibitions and customers, through their virtual presence, will visit the store and have a rich experience of the products nearly the same as they would by physically visiting the actual store.
Social media shopping is also a huge opportunity for e-commerce businesses. The average internet user uses social networks for about 2 hours and 15 minutes daily, according to ReadyCloud. Social media is where most of the shopping will be taking place.
Most social media platforms such as Instagram, Facebook, and Snapchat have integrated commerce features that help users purchase products without leaving the social platform. According to Think With Google, 43% of internet users in the U.S. are classified as “social media shoppers.”
Moreover, with e-commerce giants like Alibaba and Amazon solving the last mile challenge, the possibility of selling across borders is promising now more than ever. Shippings will likely take shorter times in the future and that will provide fertile grounds for e-commerce brands to thrive.
As the world spends much of its time on digital platforms, e-commerce brands are better positioned to benefit from it. But online store owners need to first deal with existing challenges that are plaguing the industry.
by Shukuru Amos
In one of my articles about Marketing in the Metaverse, I wrote; “I am not sure what will be left about meaningful human interaction if a substantial part of our day-to-day life will be conducted virtually. That will depend on whether virtual reality is better than reality.
But since we now care about nothing else other than profit-making, the metaverse has mouth-watering promises to businesses”.
Well, the father of PlayStation, Ken Kutaragi, has recently expressed similar concerns. He is not impressed with our new favorite buzzword — the Metaverse.
“Being in the real world is very important, but the metaverse is about making quasi-real in the virtual world, and I can’t see the point of doing it,” he said
You would rather be a polished avatar instead of your real self? That’s essentially no different from anonymous messageboard sites. Headsets would isolate you from the real world, and I can’t agree with that. Headsets are simply annoying.
Ken Katuragi
He especially finds the idea of wearing VR and AR headsets in order to experience the metaverse “simply annoying”. The 71-year-old Kutaragi believes that people would rather have tech blend in with the existing reality.
I agree with him. If our agreed mantra is to be “realistic with oneself”, then the metaverse may not be such a good idea. Because it separates you from reality.
What do you think of the Metaverse? I personally think each one of us will have to wait and find out whether a “polished avatar” of you is better than “the real you”.
Join the conversation about this topic on my Linkedin page HERE.
