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African Consumers Ignored By the West

african-consumers
Frank Braeken, the executive VP of Unilever in Africa, believes that Western companies have long underestimated Africa’s consumers. He believes that Western companies have failed to realize Africa’s potential as a diverse, multifaceted market and that African consumers have been, “underestimated, underserved, and underserviced.” He feels the West has maintained a patronizing and generic outlook about the opportunities available in Africa.

Unilever has been working in and with African communities for more than a century. They have a presence in 15 countries, employing thousands of African workers.  Yet, even Braeken acknowledges that Unilever struggled to utilize the diversity of consumers across the continent.

Unilever is just now beginning to vary their company policy and strategy, breaking Africa into several distinct chunks, such as East Africa, West Africa, and South Africa. They are working to make their products and distribution strategies relevant for the different types of consumers across the continent.

Nielsen recently released a survey about the types of consumers in African markets. The results indicate that instead of simply being viewed as a continent, Africa should be viewed as, “54 separate and distinct countries with a wide array of political, economic, geographic, cultural, and social features.” They have indicated that Western companies need to stop thinking of Africa as one single consumer.

Western markets would be smart to tap into the African market as it has been and is projected to continue growing in spending on consumer goods, telecoms, and banking. This growth sets Africa apart as an attractive new business proposition for Western companies.

While economic growth and increased knowledge of the prospect of Western companies investing in Africa is growing, there are still problems that Braeken warns need to be addressed. Africa, for the most part, lacks adequate infrastructure, good governance, and states free of corruption. However, Braeken believes that if Western states continue to talk about Africa and the real issues then not only will his company grow, but many other companies will as well.

– Caitlin Zusy 
Source: CNN
Photo: Bloomberg

Colon Misses Out on Panama’s Economic Growth

Colon Misses Out on Panama's Economic Growth
The Panama Canal is framed by Panama’s two largest cities. At one end is Panama City, a vibrant, bustling metropolitan center that is currently experiencing some of Latin America’s greatest growth. At the Canal’s other end, just forty miles away, lies the city of Colon, where potable water, electricity, structurally sound buildings, and meaningful work are all in short supply for the city’s 220,000 residents.

Panama has had an average economic growth of nine percent every year for the last five years. This is due in large part to foreign investment and development in Panama City, where Central America’s first subway is currently under construction. The tallest building in Latin America, a 70-story Trump hotel and condominium, is not out of place among newly constructed skyscrapers, malls, and restaurants.

But Colon has not enjoyed the same booming industrial and commercial development. The city has the largest duty-free trade zone in the Western hemisphere, which has long been a point of contention between residents and developers. Recent development within the zone has benefited businesses there, but not the city at large. The duty-free zone caused social unrest last year when Panama’s president passed a law allowing sale of land in and near the zone. Residents feared this would displace them from their homes and hurt their incomes. Several were killed in the protests.

The economic inequality between Colon and Panama City stems in part from racial segregation and discrimination. Racism is a long-standing problem in many Latin American countries, and Panama is no exception. Those with light skin are often viewed more favorably than those with dark skin in terms of wealth, attractiveness, and ability.

Colon is predominantly black, while Panama City has a larger percentage of European descendants. Many believe that racial discrimination has played a role in Colon’s economic depression.

The stark disparity between Panama City and Colon is an example of the unequal economic growth occurring all over the world. In many places, wealth remains concentrated where it is already abundant, while the poor remain poor, and grow poorer. Correcting this imbalance will require a multifaceted, in-depth, strategic approach that the world’s poor are unable to implement themselves. Therefore, those who have the means to do so are responsible for working to make humane living conditions and economic security realities for every person on the planet.

– Kat Henrichs

Source: NY Times
Photo: AP