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UTILIT-EASERSHow utilitarian brands are easing the strain of everyday life in Africa.
AfricA TrEND BULLETiN
June 2014
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Many Africans have had enough!
Africans, like their global counterparts, lead busy,
busy lives. And the disruptions that occur when
basic services don’t work means that many are
happy (as well as increasingly able) to spend on
products and services that make everyday life
faster and easier.
Now, they’re looking to innovative brands and
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.
Rising numbers are unwilling to accept unreliable utilities and lack of basic infrastructure.
UTiLiT-EASErSwww.trendwatching.com/trends/utilit-easers 2
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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
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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.
DEFINITION
UTiLiT-EASErSwww.trendwatching.com/trends/utilit-easers 4
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Since 2005, a net 8 million people in Africa have moved out of poverty.
THE AFRICAN DEVELOPMENT BANK, MAY 2014
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Three forces are driving UTILIT-EASERS into the mainstream in 2014:
Industry, government and archaic institutions
just aren’t delivering.
Startups and industry giants are finally
innovating to meet consumer expectation.
Today, everyone aspires to best-in-class
products, services and experiences.
1. Increasing dissatisfaction
2. era of innovation
3. everyone wants in
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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!
1. Increasing dissatisfaction
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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
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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.
2. Era of innovation
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76% of Kenyans believe that becoming an entrepreneur is a desirable career choice.
OMIDYAR NETWORK, APRIL 2013
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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.
3. Everyone wants in
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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
28%40%
50%
1980 2030NOW
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We obviously offer much more
than monthly Trend Bulletin’s...
Your complete trend and innovation solution.
Introducing our 2014 Premium Service
Find out more
2014 Trend Report
Trend Framework Innovation Database
Industry Updates Apply Toolkit
Monthly Updates 1-page Trend Handouts
1
2 3
4 5
6 7
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So let’s have a look at the savviest UTILIT-EASERS and the various ways
they are serving African consumers.
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UTILIT-EASERS AT HOME
FEATURED INNOVATIONS
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.
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The household electrification rate in Africa stands at just 43%, leaving 600 million people without access
to electricity.THE AFRICAN DEVELOPMENT BANK, MAY 2014
43%
600 million
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UTiLiT-EASErS AT HOME
MTN Nigeria & Nova-LumosMobile home power station kit provides alternative solar electricity supply
UTiLiT-EASErSwww.trendwatching.com/trends/utilit-easers 17
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UTiLiT-EASErS AT HOME
DryBathSouth African waterless showering aid for those lacking access to clean water
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UTiLiT-EASErS AT HOME
FOUFOUMIXTogolese appliance quickly pounds tubers into foufou
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UTiLiT-EASErS AT HOME
M-KOPA SolarKenyan startup provides solar home systems via M-PeSA payment plan
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UTILIT-EASERS OUT & ABOUT
FEATURED INNOVATIONS
From mobile devices to traffic jams, there’s a pressing need for innovations that make life less stressful, more convenient
and safer.
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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
225,000 deaths
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UTiLiT-EASErS OUT & ABOUT
CladLightKenyan smart-jacket reduces motorbike accidents
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UTiLiT-EASErS OUT & ABOUT
Rlg CommunicationsGambian solar-charging phone kiosks introduced in Ghana
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UTiLiT-EASErS OUT & ABOUT
Traffic Butternigerian traffic information app crowdsources updates
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UTILIT-EASERS IN EDUCATION
FEATURED INNOVATIONS
Lack of teachers, schools, textbooks, learning resources – the list goes on: a big challenge for the continent, and a great
opportunity for UTILIT-EASERS.
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Half of all African children reach adolescence without achieving literacy or numeracy.
THE AFRICAN DEVELOPMENT BANK, MAY 2014
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UTiLiT-EASErS iN EDUcATiON
Via Afrika & Breadline Africaupcycled shipping containers converted into digital learning centers in South Africa
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UTiLiT-EASErS iN EDUcATiON
ObamiSouth African mobile tutor and student study platform
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UTiLiT-EASErS iN EDUcATiON
Beni American Universitynigeria’s first private online university
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UTiLiT-EASErS iN EDUcATiON
QurioFree academic scholarships in return for community knowledge transfer
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UTILIT-EASERS FOR WORK & PLAY
FEATURED INNOVATIONS
Tools and services that improve work efficiency and enhance leisure time will forever be in demand.
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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
2040NOW
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UTiLiT-EASErS fOr WOrK & PLAY
Duma WorksKenyan website assists job-hunters
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UTiLiT-EASErS fOr WOrK & PLAY
KeepodLow-cost ‘operating-system-on-a-stick’ first tested in nairobi
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UTiLiT-EASErS fOr WOrK & PLAY
MallforAfricaShopping platform connects global e-tailers with nigerians
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UTILIT-EASERS IN MONEY MATTERS
FEATURED INNOVATIONS
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.
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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
46.3%
20%
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UTiLiT-EASErS iN MONEY MATTErS
NomaniniSouth African POS device announces expansion into Mozambique
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UTiLiT-EASErS iN MONEY MATTErS
LendicoOnline marketplace allows investors to directly fund the loans of South Africans
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UTiLiT-EASErS iN MONEY MATTErS
VeriFone & Teasy MobileCollaboration sees the expansion of mobile money services in nigeria
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UTILIT-EASERS IN SICKNESS & IN HEALTH
FEATURED INNOVATIONS
Wellness is a fundamental human desire. Across the continent, the race continues to close the gaps between this desire and
available solutions.
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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
24
12.1
7.5
30
1.6
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UTiLiT-EASErS iN SicKNESS & iN HEALTH
Wireless ReachKenyan based technology intervention programme for HIV patients
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UTiLiT-EASErS iN SicKNESS & iN HEALTH
Hello Doctor‘Doctor in your pocket’ app provides health information to South Africans
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UTiLiT-EASErS iN SicKNESS & iN HEALTH
WinSengaugandan startup launches mobile phone-based fetal heart rate momnitor
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UTiLiT-EASErS iN SicKNESS & iN HEALTH
Unjani ClinicsSouth African health organization launches ‘clinics-in-a-box’
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NEXTA few things to consider for all you aspiring
UTILIT-EASERS...
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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?
Scrutinize everything
NEXT
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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.
BOP = TOPNEXT
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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.
Global brands: Get in!
NEXT
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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!
Local brands: Get out!
NEXT
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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.
Be GoodNEXT
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