June 2014 Afric a TREND BULLETIN UTILIT-EASERS
How utilitarian brands are easing the strain of everyday life in Africa. Africans, like their global counterparts, lead busy, Many Africans have busy lives. And the disruptions that occur when had enough! basic services don’t work means that many are happy (as well as increasingly able) to spend on Rising numbers are unwilling to products and services that make everyday life accept unreliable utilities and faster and easier. Now, they’re looking to innovative brands and lack of basic infrastructure. 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.
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 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
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 3 DEFINITION
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.
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 4 Since 2005, a net 8 million people in Africa have moved out of poverty.
THE AFRICAN DEVELOPMENT BANK, MAY 2014
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 5 Three forces are 1. Increasing dissatisfaction Industry, government and archaic institutions driving just aren’t delivering. UTILIT-EASERS into 2. Era of innovation
the mainstream in Startups and industry giants are finally 2014: innovating to meet consumer expectation. 3. Everyone wants in
Today, everyone aspires to best-in-class products, services and experiences.
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 6 1. Increasing dissatisfaction
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!
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 7 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.
THE AFRICAN DEVELOPMENT BANK, MAY 2014
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 8 2. Era of innovation
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.
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 9 76% of Kenyans believe that becoming an entrepreneur is a desirable career choice.
OMIDYAR NETWORK, APRIL 2013
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 10 3. Everyone wants in
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.
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 11 50% 40% 28%
1980 NOW 2030
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
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 12 1 2014 Trend Report
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6 Monthly Updates 7 1-page Trend Handouts So let’s have a look at the savviest UTILIT-EASERS and the various ways they are serving African consumers.
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 14 FEATURED INNOVATIONS UTILIT-EASERS AT HOME
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.
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 15 43%
600 million
The household electrification rate in Africa stands at just 43%, leaving 600 million people without access to electricity.
THE AFRICAN DEVELOPMENT BANK, MAY 2014
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 16 UT ILIT-EASERS AT HOME MTN Nigeria & Nova-Lumos
Mobile home power station kit provides alternative solar electricity supply
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 17 UT ILIT-EASERS AT HOME DryBath
South African waterless showering aid for those lacking access to clean water
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 18 UT ILIT-EASERS AT HOME FOUFOUMIX
Togolese appliance quickly pounds tubers into foufou
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 19 UT ILIT-EASERS AT HOME M-KOPA Solar
Kenyan startup provides solar home systems via M-PESA payment plan
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 20 FEATURED INNOVATIONS 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.
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 21 225,000 deaths 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
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 22 UT ILIT-EASERS OUT & ABOUT CladLight
Kenyan smart-jacket reduces motorbike accidents
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 23 UT ILIT-EASERS OUT & ABOUT Rlg Communications
Gambian solar-charging phone kiosks introduced in Ghana
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 24 UT ILIT-EASERS OUT & ABOUT Traffic Butter
N igerian traffic information app crowdsources updates
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 25 FEATURED INNOVATIONS 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.
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 26 Half of all African children reach adolescence without achieving literacy or numeracy.
THE AFRICAN DEVELOPMENT BANK, MAY 2014
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 27 UT ILIT-EASERS IN EDUCATION Via Afrika & Breadline Africa
U pcycled shipping containers converted into digital learning centers in South Africa
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 28 UT ILIT-EASERS IN EDUCATION Obami
South African mobile tutor and student study platform
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 29 UT ILIT-EASERS IN EDUCATION Beni American University
N igeria’s first private online university
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 30 UT ILIT-EASERS IN EDUCATION Qurio
Free academic scholarships in return for community knowledge transfer
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 31 FEATURED INNOVATIONS UTILIT-EASERS FOR WORK & PLAY
Tools and services that improve work efficiency and enhance leisure time will forever be in demand.
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 32 NOW 2040 Africa’s current working population of 600 million is set to double by 2040, overtaking both China’s and India’s.
THE AFRICAN DEVELOPMENT BANK, MAY 2014
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 33 UT ILIT-EASERS FOR WORK & PLAY Duma Works
Kenyan website assists job-hunters
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 34 UT ILIT-EASERS FOR WORK & PLAY Keepod
Low-cost ‘operating-system-on-a-stick’ first tested in Nairobi
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 35 UT ILIT-EASERS FOR WORK & PLAY MallforAfrica
Shopping platform connects global e-tailers with Nigerians
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 36 FEATURED INNOVATIONS 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.
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 37 46.3%
20%
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
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 38 UT ILIT-EASERS IN MONEY MATTERS Nomanini
South African POS device announces expansion into Mozambique
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 39 UT ILIT-EASERS IN MONEY MATTERS Lendico
Online marketplace allows investors to directly fund the loans of South Africans
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 40 UT ILIT-EASERS IN MONEY MATTERS VeriFone & Teasy Mobile
Collaboration sees the expansion of mobile money services in Nigeria
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 41 FEATURED INNOVATIONS 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.
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 42 30
24
12.1
7.5
1.6
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
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 43 UT ILIT-EASERS IN SICKNESS & IN HEALTH Wireless Reach
Kenyan based technology intervention programme for HIV patients
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 44 UT ILIT-EASERS IN SICKNESS & IN HEALTH Hello Doctor
‘Doctor in your pocket’ app provides health information to South Africans
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 45 UT ILIT-EASERS IN SICKNESS & IN HEALTH WinSenga
U gandan startup launches mobile phone-based fetal heart rate momnitor
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 46 UT ILIT-EASERS IN SICKNESS & IN HEALTH Unjani Clinics
South African health organization launches ‘clinics-in-a-box’
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 47 NEXT
A few things to consider for all you aspiring UTILIT-EASERS...
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 48 NEXT Scrutinize everything
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?
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 49 NEXT BOP = TOP
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.
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 50 NEXT Global brands: Get in!
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.
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 51 NEXT Local brands: Get out!
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!
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 52 NEXT Be Good
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.
www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 53 www.trendwatching.com/trends/utilit-easers UTEASEILIT- RS 54 NwMORE...o ... Enjoyed this Trend Bulletin? Want more?
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