Skip to Content
  • Offices

    Offices

    North & Latin America
    • Atlanta
    • Austin
    • Bogota
    • Boston
    • Buenos Aires
    • Chicago
    • Dallas
    • Denver
    • Houston
    • Los Angeles
    • Mexico City
    • Minneapolis
    • Monterrey
    • Montreal
    • New York
    • Rio de Janeiro
    • San Francisco
    • Santiago
    • São Paulo
    • Seattle
    • Silicon Valley
    • Toronto
    • Washington, DC
    Europe & Africa
    • Amsterdam
    • Athens
    • Berlin
    • Brussels
    • Copenhagen
    • Dusseldorf
    • Frankfurt
    • Helsinki
    • Istanbul
    • Johannesburg
    • Kyiv
    • Lisbon
    • London
    • Madrid
    • Milan
    • Munich
    • Oslo
    • Paris
    • Rome
    • Stockholm
    • Vienna
    • Warsaw
    • Zurich
    Middle East
    • Doha
    • Dubai
    • Riyadh
    Asia & Australia
    • Bangkok
    • Beijing
    • Bengaluru
    • Brisbane
    • Ho Chi Minh City
    • Hong Kong
    • Jakarta
    • Kuala Lumpur
    • Manila
    • Melbourne
    • Mumbai
    • New Delhi
    • Perth
    • Shanghai
    • Singapore
    • Sydney
    • Tokyo
    See all offices
  • Alumni
  • Media Center
  • Subscribe
  • Contact
  • Colombia | Español

    Select your region and language

    Global
    • Global (English)
    North & Latin America
    • Brazil (Português)
    • Argentina (Español)
    • Canada (Français)
    • Chile (Español)
    • Colombia (Español)
    Europe, Middle East, & Africa
    • France (Français)
    • DACH Region (Deutsch)
    • Italy (Italiano)
    • Spain (Español)
    • Greece (Elliniká)
    Asia & Australia
    • China (中文版)
    • Korea (한국어)
    • Japan (日本語)
  • Saved items (0)
    Saved items (0)

    You have no saved items.

    Bookmark content that interests you and it will be saved here for you to read or share later.

    Explore Bain Insights
  • Industries
    Main menu

    Industries

    • Aeroespacial y Defensa
    • Agroindustria
    • Químicos
    • Construcción e Infraestructura
    • Productos de Consumo
    • Servicios Financieros
    • Salud y Ciencias de la Vida
    • Maquinaria y Equipo Industrial
    • Medios y Entretenimiento
      Industries
      Medios y Entretenimiento
      • Media Lab
    • Metales
    • Minería
    • Petróleo y Gas
    • Papel y Empaque
    • Private Equity
      Industries
      Private Equity
      • Due Diligence
      • Exit Planning
      • Firm Strategy & Operations
      • Portfolio Value Creation
    • Sector Público y Social
    • Retail
    • Tecnología
    • Telecomunicaciones
      Industries
      Telecomunicaciones
      • Capital Expenditure
      • Telco Digital Transformation
    • Transporte
    • Viajes y Turismo
    • Servicios Públicos y Energías Renovables
  • Consulting Services
    Main menu

    Consulting Services

    • Customer Experience
    • Sustainability
    • Innovation
    • M&A
    • Operations
    • People & Organization
    • Private Equity
    • Sales & Marketing
    • Strategy
    • AI, Insights, and Solutions
    • Technology
    • Transformation
  • Digital
  • Insights
    Main menu

    Insights

    • Industry Insights
    • Services Insights
    • Bain Books
    • Webinars
    • Bain Futures
    View all Insights
    Featured topics
    • Tariff Response
    • Artificial Intelligence
    • Thriving in Uncertainty
    • Executive Conversations
    • Macro Trends
    • Private Equity Report
    • M&A Report
    • Healthcare Private Equity Report
    • Paper & Packaging Report
    • Technology Report
    • CEO Insights
    • CFO Insights
    • COO Insights
    • CIO Insights
    • CMO Insights
    View all featured topics
  • About
    Main menu

    About

    • What We Do
    • What We Believe
    • Our People & Leadership
    • Client Results
    • Awards & Recognition
    • Global Affiliations
    Further: Our global responsibility
    • Sustainability
    • Social Impact
    • World Economic Forum
    Learn more about Further
  • Carreras
    Main menu

    Carreras

    • Trabaja con Nosotros
      Carreras
      Trabaja con Nosotros
      • Find Your Place
      • Nuestras Áreas de Trabajo
      • Equipos Integrados
      • Estudiantes
      • Internships & Programs
      • Eventos de Reclutamiento
    • La Vida en Bain
      Carreras
      La Vida en Bain
      • Blog: Inside Bain
      • Historias Profesionales
      • Nuestra Gente
      • Dónde Trabajamos
      • Apoyando tu Crecimiento
      • Grupos de Afinidad
      • Beneficios
    • Impact Stories
    • Nuestro Proceso
      Carreras
      Nuestro Proceso
      • Qué Esperar
      • Entrevistas
    FIND JOBS
  • Offices
    Main menu

    Offices

    • North & Latin America
      Offices
      North & Latin America
      • Atlanta
      • Austin
      • Bogota
      • Boston
      • Buenos Aires
      • Chicago
      • Dallas
      • Denver
      • Houston
      • Los Angeles
      • Mexico City
      • Minneapolis
      • Monterrey
      • Montreal
      • New York
      • Rio de Janeiro
      • San Francisco
      • Santiago
      • São Paulo
      • Seattle
      • Silicon Valley
      • Toronto
      • Washington, DC
    • Europe & Africa
      Offices
      Europe & Africa
      • Amsterdam
      • Athens
      • Berlin
      • Brussels
      • Copenhagen
      • Dusseldorf
      • Frankfurt
      • Helsinki
      • Istanbul
      • Johannesburg
      • Kyiv
      • Lisbon
      • London
      • Madrid
      • Milan
      • Munich
      • Oslo
      • Paris
      • Rome
      • Stockholm
      • Vienna
      • Warsaw
      • Zurich
    • Middle East
      Offices
      Middle East
      • Doha
      • Dubai
      • Riyadh
    • Asia & Australia
      Offices
      Asia & Australia
      • Bangkok
      • Beijing
      • Bengaluru
      • Brisbane
      • Ho Chi Minh City
      • Hong Kong
      • Jakarta
      • Kuala Lumpur
      • Manila
      • Melbourne
      • Mumbai
      • New Delhi
      • Perth
      • Shanghai
      • Singapore
      • Sydney
      • Tokyo
    See all offices
  • Alumni
  • Media Center
  • Subscribe
  • Contact
  • Colombia | Español
    Main menu

    Select your region and language

    • Global
      Select your region and language
      Global
      • Global (English)
    • North & Latin America
      Select your region and language
      North & Latin America
      • Brazil (Português)
      • Argentina (Español)
      • Canada (Français)
      • Chile (Español)
      • Colombia (Español)
    • Europe, Middle East, & Africa
      Select your region and language
      Europe, Middle East, & Africa
      • France (Français)
      • DACH Region (Deutsch)
      • Italy (Italiano)
      • Spain (Español)
      • Greece (Elliniká)
    • Asia & Australia
      Select your region and language
      Asia & Australia
      • China (中文版)
      • Korea (한국어)
      • Japan (日本語)
  • Saved items  (0)
    Main menu
    Saved items (0)

    You have no saved items.

    Bookmark content that interests you and it will be saved here for you to read or share later.

    Explore Bain Insights
  • Industries
    • Industries

      • Aeroespacial y Defensa
      • Agroindustria
      • Químicos
      • Construcción e Infraestructura
      • Productos de Consumo
      • Servicios Financieros
      • Salud y Ciencias de la Vida
      • Maquinaria y Equipo Industrial
      • Medios y Entretenimiento
      • Metales
      • Minería
      • Petróleo y Gas
      • Papel y Empaque
      • Private Equity
      • Sector Público y Social
      • Retail
      • Tecnología
      • Telecomunicaciones
      • Transporte
      • Viajes y Turismo
      • Servicios Públicos y Energías Renovables
  • Consulting Services
    • Consulting Services

      • Customer Experience
      • Sustainability
      • Innovation
      • M&A
      • Operations
      • People & Organization
      • Private Equity
      • Sales & Marketing
      • Strategy
      • AI, Insights, and Solutions
      • Technology
      • Transformation
  • Digital
  • Insights
    • Insights

      • Industry Insights
      • Services Insights
      • Bain Books
      • Webinars
      • Bain Futures
      View all Insights
      Featured topics
      • Tariff Response
      • Artificial Intelligence
      • Thriving in Uncertainty
      • Executive Conversations
      • Macro Trends
      • Private Equity Report
      • M&A Report
      • Healthcare Private Equity Report
      • Paper & Packaging Report
      • Technology Report
      • CEO Insights
      • CFO Insights
      • COO Insights
      • CIO Insights
      • CMO Insights
      View all featured topics
  • About
    • About

      • What We Do
      • What We Believe
      • Our People & Leadership
      • Client Results
      • Awards & Recognition
      • Global Affiliations
      Further: Our global responsibility
      • Sustainability
      • Social Impact
      • World Economic Forum
      Learn more about Further
  • Carreras
    Popular Searches
    • Agile
    • Digital
    • Strategy
    Your Previous Searches
      Recently Visited Pages

      Content added to saved items

      Saved items (0)

      Removed from saved items

      Saved items (0)

      Article

      How companies can overcome Africa's five great challenges

      How companies can overcome Africa's five great challenges

      While many hurdles in Africa are similar to those in other emerging markets, our research shows that five are more pronounced, requiring Africa-specific solutions.

      By Nikhil Ojha, Matthew Meacham and Rohithari Rajan

      • min read

      Article

      How companies can overcome Africa's five great challenges
      en

      This article originally appeared in The Economic Times: Corporate Dossier

      Heineken beer is sold in more than 170 countries, but when the world's third-largest brewer does business in Africa, it knows it needs to play by some different rules.

      In Africa, Heineken operates breweries and also has its own power and water treatment plants. That's how the company overcomes a major African obstacle: weak infrastructure. Heineken has learned that, while Africa poses substantial operating challenges for consumer products makers, they are not insurmountable. And finding innovative ways to clear those obstacles can pay off.

      While many hurdles in Africa are similar to those in other emerging markets, our research shows that five are more pronounced, requiring Africa-specific solutions: an underdeveloped infrastructure, a disorganized and fragmented retail landscape, a lack of reliable market research, unclear and ever-changing government regulations and a limited talent pipeline.

      Because Indian companies face a number of similar challenges at home, they are well-positioned to rely on their domestic experience to tackle Africa's obstacles. We've identified a range of effective approaches that can help companies navigate this thorny landscape in Africa.

      Be creative to bypass Africa's poor public infrastructure, reduce operating costs and innovate to compensate

      Successful companies develop strategies to invest in their own reliable support systems when necessary and to offset the additional expenses. They buy power generators, build water tanks and occasionally pave roads.

      They remain competitive by balancing the high costs of infrastructure solutions with rigorous cost and cash management. Sounds familiar, doesn't it? To reduce its reliance on fuel, Bharti Airtel has invested $10 million in Malawi to build a green energy-powered network which, in the medium- to long term, will also cut costs and conserve the environment.

      Another creative infrastructure solution: product innovation. Promasidor, an African dairy, beverage and food enhancement company, developed Cowbell, a milk powder packaged in sachets, in which they replaced animal fat with vegetable fat to give it a longer shelf life, thereby diminishing the dependency on a cold supply chain.

      African children put the powder directly on their tongues, to overcome obstacles about finding sanitary water. Promasidor is now a leader in Nigeria's powdered milk market.

      The poor infrastructure also results in an uncertain supply of raw materials. Leaders surmount this by building strong supplier relationships or by becoming vertically integrated to stockpile critical materials.

      Develop multitiered models to route products to market

      The vast majority of consumers in Africa still buy from small stores, hawkers, and "spaza shops" (run out of homes in South Africa). While modern retail is growing, it's still a fraction of the formal retail landscape.

      To accelerate market coverage, many companies establish a network of trusted third-party distributors and wholesalers, teaming their own salesforce with distributors to ensure a measure of control.

      Some companies collaborate with traditional outlets directly to increase sales and improve distribution, and in the process, professionalize the way shopkeepers work.

      Marico launched a program in Egypt aimed at developing its relationship with suppliers and distributors and improving their communication skills, as well as in sales and management techniques. Such programs enabled it to maximize its outreach to consumers through its trained associates.

      In some categories, players bolster sales by encouraging unauthorized sellers to formalize their businesses. Brewer SABMiller helped illegal taverns in South Africa convert into licensed outlets, transforming off-the-books sellers into a thriving new retail segment.

      Gain a competitive edge by compiling your own information about Africa's consumer or trade landscape

      There's a dearth of data about Africa's diverse consumers and its retail environment. Leading consumer packaged goods makers gather their own information instead of depending on not-so-reliable data from some public research firms.

      Olam, a global leader in agricultural products with a packaged foods business in Africa, is investing heavily to analyze the extreme differences among West African consumers, helping it tailor products to local needs and identify possible categories for new growth.

      Partner with local stakeholders-governments, businesses and communities-to build credibility

      Market leaders collaborate with local business networks to deal with a business environment often hindered by bureaucracy, corruption, ever-changing regulations, as well as multiple currencies and protectionist measures.

      To earn the right to influence local agendas and effect change, market leaders in Africa appoint local business leaders to their board of directors, get listed on the local stock exchange and invest in community development.

      NIIT, India's IT training pioneer, works with a local government in South Africa to help students develop vocational training skills and also finds them internships in India.

      Out-invest in recruiting, developing and retaining local talent

      Africa's shortage of skilled professionals is mainly due to the population's low education level and a troubling brain drain of highly educated workers.

      Leading companies make a substantial commitment to create a rich talent pipeline. They leverage their corporate reputation, brand strength and presence. Some companies also launch graduate recruiting and training programs and provide clear career development paths.

      They ensure that salaries are correctly benchmarked not just against local competitors, but against companies in other fast-growing sectors that could raid their talent. Several Indian companies have moved sensitively to handle employees of firms they have acquired in Africa.

      When Godrej faced workforce resistance over the change in management during its acquisition of South Africa's Rapidol in 2006 and Kinky in 2008, it set up provident funds for its new employees with an employer contribution — not a requirement in the country — and invested in growing and retaining talent.

      (The authors are with Bain & Company)

      Consumer Products
      Growing with Africa's consumers

      Africa may be the next best place on Earth to look for growth.

      Read more
      Strategy
      How to Succeed in Africa

      Repeatable models are directly relevant to Africa.

      Read more
      Consumer Products
      Should Africa Be Higher On Your Corporate Agenda?

      It’s time to take a new look at Africa.

      Read more
      First published in diciembre 2012

      How We've Helped Clients

      Voluntary Carbon Markets: A Bank Moves Early to Seize the Opportunity

      See more related case studies

      Supply Chain Security Mitigates a Sovereign Wealth Fund’s Construction Disruptions

      See more related case studies

      Inspiring retail employees to think and act like owners

      See more related case studies

      Want to continue the conversation

      We help global leaders with their organization's most critical issues and opportunities. Together, we create enduring change and results

      Bain Insights. Our perspectives on critical issues global businesses face in today's challenging environment, delivered monthly.

      *I have read and understand Bain’s Privacy Notice.

      Please read and agree to the Privacy Policy.
      Bain & Company
      Contact us Sustainability Accessibility Terms of use Privacy Modern Slavery Act Statement Cookie Policy Sitemap Log In

      © 1996-2026 Bain & Company, Inc.

      Contact Bain

      How can we help you?

      • Business inquiry
      • Career information
      • Press relations
      • Partnership request
      • Speaker request
      See all offices