Africa is a continent brimming with creativity, innovation, and natural resources. From traditional crafts to modern innovations, African products are gaining recognition and popularity worldwide. This article explores the diverse range of products made in Africa, highlighting their significance and impact on local communities and the global economy.
The Rise of African Brands
African brands are increasingly asserting their presence in the global market. In 2022, African brands increased their share of the Top 100 most admired brands in Africa by 4%, comprising 17% of the total. This is a notable improvement from the all-time low of 13% in 2020 and 2021.
Several factors contribute to this resurgence:
- Increased Intra-African Trade: The acceleration of the African Continental Free Trade Area (AfCFTA) is driving greater trade within Africa, bolstering local brands.
- Local Solutions: Following the pandemic, countries and consumers are increasingly looking to local solutions.
- E-commerce Growth: E-commerce platforms are enabling local brands to reach global markets.
- Retail Expansion: Despite the pandemic, many African brands have experienced massive growth in retail footprint and marketing spend.
Notable African Brands
Several African brands have made significant strides in recent years:
- Bathu and Drip: South African lifestyle footwear brands that have rocketed into the Top 100.
- Glo: Nigerian telecommunications giant, which has climbed 31 spots in the rankings.
- Ethiopian Airlines: Ethiopia’s global airline brand, up 24 spots, is arguably the only African airline that effectively weathered the Covid storm.
- Jumia: E-commerce giant that has expanded its reach across 11 African markets.
- Kasapreko Drinks: Ghana’s Kasapreko Drinks, the highest returning entry after a five-year absence.
- MTN and Dangote: South Africa’s MTN and Nigeria’s Dangote continue to be the standard bearers of African brands.
What does Glocal mean to investment in Africa?
Most Admired African Brands
Brand Africa also produces rankings focusing on the most admired African brands. These rankings are based on both spontaneous recall and prompted recall of African brands.
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MTN has consolidated its status as the #1 African brand, switching places with Dangote as the #1 African brand (recalled when prompted).
South Africa remains the leading brand-building nation in Africa, with brands like MTN and DSTV establishing themselves in the African psyche. South African brands represent 41% of African brands in the Top 100.
Non-African Brands Still Dominate
Despite the rise of African brands, non-African brands continue to dominate the African market. Nike has led the ranking for the fifth consecutive year, with non-African brands holding 83% of the most admired brands in Africa.
However, Asia has increased its share of the Top 100, representing 20% of the brands at the expense of European and North American brands.
Financial Services: Telcos Compete with Banks
African brands dominate the financial services sector, holding 68% of the share in the ranking of most admired financial services brands. Telecommunication brands like Safaricom’s Mpesa, Econet’s Ecocash, Airtel, MTN, and Orange Money are becoming significant competitors to traditional banks.
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With their deep pockets, innovation, and reach, telcos are driving change in financial services, challenging the status quo and forcing legacy financial institutions to become more agile. The Covid-19 pandemic has accelerated the cashless mobile money space, a trend that appears irreversible.
Media: Trend Towards Digital and Mobile
In the media landscape, non-African global brands like BBC, CNN, and Al Jazeera continue to dominate the ranking of most admired media brands. However, the trend is firmly towards digital and mobile in terms of news consumption.
While subscription-based media consumption appears to be declining, there has been an increase in the number of new Over-The-Top (OTT) platforms entering Africa. African OTT movie and TV episode revenues are estimated to reach $2 billion by 2027.
Riding the African Pride Wave
A recent report by Africa No Filter found that most young Africans are optimistic about the continent and eager to experience it for business and pleasure. Building on this optimism, Brand Africa sought to establish which brand best symbolizes pride in Africa.
The same names keep cropping up - South Africa’s MTN, Nigeria’s Dangote, and Ethiopia’s Ethiopian Airlines.
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Value-Add Products Exported From Africa
Africa is home to some of the world’s most incredible value-add products, transforming local communities and contributing to the global economy. According to the International Trade Centre, exports of value-add products from Africa were worth an estimated $180 billion in 2017.
From cocoa and coffee beans to handcrafted jewelry and textiles, African entrepreneurs are leveraging their creative resources to create merchandise that is attractive to global buyers. Organizations that purchase African exports can help to support sustainable livelihoods, create jobs, and promote economic development.
Examples of Value-Add Products
Here are some impressive examples of value-added products exported from Africa:
- Shea Butter: Used in various skincare products, with Nigeria and Ghana being major producers.
- Tea: Kenya is a successful example of smallholder farmers' inclusion in the tea value chain.
- Spices: Africa exported more than $2.2 billion worth of spices in 2018, with Madagascar leading in vanilla production.
- Coffee: Ethiopia is the birthplace of coffee and the fifth-largest producer in the world.
- Textiles: Egypt is one of the largest producers of textiles in Africa.
- Cocoa: Ghana is the second-largest producer of cocoa beans in the world.
- Organic Honey: Zambia is known for producing high-quality organic honey.
- Marula Oil: Derived from the nuts of the marula tree in Southern Africa, used in skin care and hair products.
- Baobab Powder: High in vitamin C, fiber, and antioxidants, making it a popular superfood.
- African Black Soap: A natural product made from plantain skins, cocoa pods, and other natural ingredients.
- Rubber: In 2018, Africa exported more than $1.2 billion worth of rubber.
- Fruits: The continent exported more than $3.3 billion worth of fruits in 2017.
- Teak Wood: In 2018, Africa exported more than $1.3 billion worth of teak wood.
- Essential Oils: In 2017, the continent exported more than $1.3 billion worth of essential oils.
- Cotton: The continent exported more than $2.2 billion worth of cotton in 2018.
- Wine: South Africa is the world’s seventh-largest producer of wine.
- Groundnuts: Senegal is the world’s fourth-largest producer of groundnuts.
- Olive Oil: Tunisia is the world’s fourth-largest producer of olive oil.
What does Glocal mean to investment in Africa?
These examples demonstrate the potential of value-added products from Africa to transform local economies and contribute to the global market. By adding value to raw materials and other products, African countries can increase their export profits and help local producers.
| Product Category | Examples | Key Producing Countries |
|---|---|---|
| Agricultural Products | Cocoa, Coffee, Tea, Spices, Fruits, Groundnuts | Ghana, Ethiopia, Kenya, Madagascar, Morocco, Senegal |
| Oils & Extracts | Shea Butter, Marula Oil, Essential Oils, Olive Oil | Nigeria, Ghana, Southern Africa, Tunisia |
| Textiles & Fibers | Cotton, Fabrics | Egypt, Tanzania |
| Wood & Minerals | Teak Wood, Rubber | Various African countries |
| Processed Foods & Soaps | Wine, Organic Honey, African Black Soap | South Africa, Zambia, Various African countries |
The Challenge of Transforming Local Communities
Despite the abundant natural resources, the African continent faces challenges that prevent its people from fully benefiting from trade. The lack of economic growth and investment opportunities limits access to education, health care, and other essential services.
Multinational corporations and Western investors often exploit the continent’s weak governance systems and lack of resources to extract natural resources without providing the necessary investments in infrastructure and human capital.
Solutions for Transforming Local Communities
To ensure that the benefits of trade and investment reach local communities, several solutions can be implemented:
- Viable Value-addition Practices: Adopting value-addition practices can generate up to 50% more income for African countries.
- Trickle Down Trade and Investment: Strengthening governance systems, improving access to basic services, and providing incentives for local businesses to access export markets.
- Fair Trade: Ensuring that trade policies are fair, transparent, and beneficial to the people.
By implementing these solutions, African countries can create a more equitable and prosperous future for their people and fully realize the economic potential of their exports.
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