Africa Practice

Advising on market entry

A leading manufacturer of high end construction materials made a strategic decision to invest in sub-Saharan Africa in search of new growth markets for two of its main product lines, given the slowing demand in more mature markets in Europe, the Americas and Asia. The company did not have any existing experience in or knowledge of SSA markets and required opportunity identification and market-entry support.

Africa Practice provided the company with in-depth qualitative analysis of the existing market opportunities and associated risks, as well as the political, regulatory and policy environment in the construction industry in Nigeria, Ghana, Kenya, Tanzania and Cameroon. In the first phase of work, Africa Practice analysts  supplied  in-depth analysis of the five markets, using objective benchmarks which broadly focused on demographics, political dynamics, macroeconomic policies, operational environment and construction sector dynamics. On the basis of the findings from the first phase of work Africa Practice then conducted more detailed market analysis on Ghana and Nigeria, which included in-depth market research, visits to ports, potential distribution outlets, and discreet interviews with an extensive network of government and private-sector institutions connected to the construction industries in both countries.

Africa Practice made a strategic recommendation for the company to invest in Ghana, which was adopted by the company and in due course, it successfully entered the Ghanaian market to serve the entire West Africa region.