forget bric - will the middle east & africa please stand up. sxsw 2014 presentation
DESCRIPTION
This presentation was created for SXSW 2014, held in Austin, Texas. The focus of the presentation was to highlight the huge opportunities for businesses looking to break into the Middle East and African markets.TRANSCRIPT
@Dubai_CEOs
FORGET BRIC!Will the Middle East & Africa
Please Stand Up
Amit Vyas – Nexa, Dubai
Is the Middle East & Africa a good market for
technology companies?
What is the potential?
How?
The Lands of Opportunity
orThe Lands that
Time Forgot?
Technophilesor
Technophobes?
“At a regional level, internet users in the Middle East and
Africa are the most likely to be on the major social networks, indicating how
enthusiastically networking has been embraced by digital audiences in this region.”
Global Web Index 2014
Social Networks DO NOT come
with a user manual
Fans for life
Think about this for a second…
Mobile Penetration Rates Higher than
Anywhere Else in the World
Over 200% in some parts of the Middle East80% in Africa
TheOpportunity
Ref: Arabnet
Regional online shopping didn’t really exist until 2010
Today, online shopping in the Middle East and North Africa is estimated at $1Bn, and
online transactions (including flights, hotels, etc) more
broadly have reached $15Bn.
Ref: Arabnet
Ecommerce Average Order Value is $115 in MENA
There is a variation between countries in ecommerce
value: highest is Qatar/UAE around $150, lowest is Egypt
$79 Saudi Arabia, UAE, and Egypt make up 93% of ecommerce
business
Ref: Arabnet
What has caused the change?
Simple:
Understanding regional differences
Ref: Arabnet
75% Cash on Delivery versus
25% Online Payments
From necessity comes
innovation
M-PESA promotes online (mobile)
transactions
M-SHWARI: On-demand loans and savings. 2-5%
returns
Sustainability
Ref: MXit
“Barring catastrophe, Africa's population will reach 2 billion by 2050. To get a sense of this kind of increase, consider that in 1950
there were two Europeans for every African; by 2050, on present trends, there will be
two Africans for every European”
The Economist
Government’s now understand the value of technological and
online innovation …
…even in resource rich countries
Ref: MXit
1990
2012
Where do I start?
Take time to understand the market and the right market for your business
If you don’t have time, find a partner
that does and understands how the region works
Don’t be scared of the language
differences
Don’t try to define how the market should use your product – let the
market do that for you
Is it safe?
