Creating Value in Africa
unlocking unprecedented potential
An estimated 90% of urban growth worldwide will occur in developing countries. The United Nations stated in a 2007 report that the urban
population in African and Asian cities will double by the year 2030, adding 1.7 billion people to these cities. That is more than the
combined population of present day China and The United States. Nighty five percent (95%) of the population on the African continent
falls within the emerging market and is responsible for 71% of the African Market. The average emerging market consumer is a debt- free
consumer with a growing expendable income. Over 250 million Africans will have disposable income for the first time within the next
decade.
As stated by Dr. Andrew Kuper in a McKinsey & Company insight in February 2014: “In fact, as books like “Portfolios of the Poor show”,
85 percent of low-income and emerging consumers are not destitute, are not pure recipients. They are working, striving people who are
managing money and who are typically engaged in 16 financial transactions at any one time—borrowing from here, promising to pay
there, protecting themselves here and there. There is an opportunity to serve them with much more efficient tools."
The article also states that - "once you put this synergistic combination together of profit and purpose, the results you get on both sides are
stronger. Since the Industrial Revolution, this notion of a trade-off that has been practiced has actually been a fetter on humanity. And we
can liberate businesses, we can liberate investors, and we can really liberate societies to invest in a very different way because of this
demonstrated performance of the purpose-driven business."
The Global Economic Pyramid:
Underserved = Opportunity
Focussed products and services: Only 3-5% of formal sector
products and services aimed at this market
Top and Middle Class:
Customers: 30-40% of global customers
Income: more than $300 per month products and services aimed at this market
Focussed products and services: 95-97% of formal sector
Population: ±2.3 Billion
Economic Influence: ±$15-25 trillion
Bottom of the Pyramid Market:
Customers: 60-70% of global customers
Income: $50 - $300 per month
Population: ±4.7 Billion
Economic Influence: ±$5 trillion
The combination of the immanent growing opportunities in the emerging consumer market and a profit-with- purpose approach, EmpiriQ is
strategically positioned to contribute to socio economic change in Africa. EDS leverages its knowledge and experience in the emerging
consumer markets to tailor business models and strategies in collaboration with its clients, that are uniquely contextualised for the specific
needs of underdeveloped urban African communities across various market sectors.
 EmpiriQ; methodology in an African context
EmpiriQ’s methodology involves a unique combination of the following Key Solution Elements* to develop sector specific market solutions. These elements include:
- Quantum jumps in economic efficiency: Price/Performance - Price/Value Ratio
- Hybrid solutions blend old and new technologies/business models
- Scalable and transportable operations across borders and languages
- Reduce resource intensity – Eco friendly
- Radical product redesign
- Build tailored logistical and service infrastructure
- Process innovation is as important as the product
- Deskill processes and professionalise through smart systems
- Education in product use
- Design for hostile environments
- Adaptable across cultures and languages
- Appropriate, tailored distribution methods: spread out rural & high density
- Focus on broad architecture and integrated platforms
- Design for rapid changes and improvements
- Challenge existing paradigm e.g grid based electricity.
- Localised Value creation
- Unconventional partnerships – NGO’s/Governments/FBO’s/Communities
* Adapted from Fortune at the Bottom of the Pyramid, by C.K. Prahalad
Methodology:
EmpiriQ combines these solution elements in appropriate business delivery platforms to provide market-driven business solutions that provide:
innovation to unlock
potential with a
holistic approach
financial engineering
to provide tailored
funding solutions
mentorship and
organisational
capacity to ensure
resilience and
scalability
Structuring
and
Integration