General News
Challenges of Communicating with World’s Fastest Growing Middle Class
Despite the vast opportunities that Africa is presenting to various brands and businesses, communicating with the continent’s one billion consumers can be a challenge due to the various cultures, political situations and language barriers that exist.
This is according to Megan Collinicos, head of Advertising and Public Relations for DHL Express Sub-Saharan Africa, who says that should messages and channels not be correctly targeted and adapted for this growing market, the success rate of businesses expanding into this region is significantly diminished.
The African Development Bank has reported that on the back of economic growth in various African territories, rising real incomes will lead to higher consumer spending, which is projected to almost double in the next decade.
It is further reported that a growth of 4.5% in per capita GDP compounded annually through 2015 will result in an increase of more than 35% in consumer spending in Africa.
Collinicos pointed to the recently released Nielsen’s Emerging Market Insights research , which highlights that consumers in Africa are very receptive to marketing messages, with half (48%) of those interviewed confirming that advertising has significant influence on their purchase decisions.
The research also revealed that 38% of respondents are motivated to buy a specific product due to promotional activities and that 34% will buy more of or give preference to products from companies that they know engage in corporate social responsibility programs or practices. Word of mouth marketing continues to play a large part in the decision making of emerging-market consumers.
“Companies should therefore be innovative when it comes to marketing on the African continent, as consumers in these regions are relatively open when it comes to non-traditional channels. It is also key to have individual strategies for the different regions in Africa, as what may work in Nigeria will not necessarily work well in Uganda or Zambia.
“As we are present in every country in Africa, we have worked hard to understand each individual market and develop individual strategies to suit them. We have seen some of our greatest success from street activations where we engage in fun activities with the general public. This is especially effective in cities where the traditional advertising landscape is already cluttered.
“Our service promise is ‘Excellence. Simply Delivered’ and therefore we aim to centre our communication messages and actions around shipping and delivering with excellence. That way it gives the consumer a clear idea of what we do – this enables us to combine brand awareness with brand association, so when consumers need to send a package, they think of DHL,” Collinicos added.
She also said, “It is predicted that internet usage on mobile phones will increase 20-fold in the next five years in Africa, which is double the rate of growth in the rest of the world, and the price of data is set to steadily decrease. This makes digital and smart social media advertising techniques a viable channel to reach your target market. It’s relatively cost effective in relation to traditional channels and has the added benefit of being flexible and immediate.
“We have in excess of 450 000 fans on Facebook, which allows us to communicate with a large audience in real time, about everything from special offers, shipping tips, promotional activities, sponsorships, sharing our CSR stories and using it as an additional customer service platform.”
“As excitement and interest mounts around Africa being an attractive growth market for SMEs, careful attention should be paid to choosing marketing strategies for the respective regions – effective communication can make or break the success of global expansion”.
The UK’s Manufacturing Africa programme has formed a strategic partnership with investment firm TLG Capital to enhance funding opportunities for Nigeria’s manufacturing sector.
L-R: Director, Head of International Affairs, BPI France, Isabelle Bebear; Swedfund Regional Director for West Africa, Kitanha Toure; British Deputy High Commissioner in Lagos, Mr. Jonny Baxter; Co-founder & CEO of TLG Capital, Zain Latif and IFC World Bank Group, Regional Industry Manager, Alexandra Celestin at the signing ceremony today in Lagos.
This collaboration aims to strengthen Nigerian businesses’ eligibility for financing through Africa Growth Impact Fund II (AGIF II), which has raised $75 million towards its $200 million target.
Supported by the World Bank’s International Finance Corporation (IFC), Swedfund, Norfund, and Bpifrance, the fund seeks to channel capital into promising manufacturing businesses across Nigeria.
Manufacturing Africa will assist companies with due diligence, corporate finance, ESG compliance, gender inclusion, and operational improvements, ensuring they meet investment criteria.
One of the first beneficiaries of this initiative is Terra Aqua, an aluminium recycling company in Ogun State. Terra Aqua is set to receive $7.5 million in debt financing from TLG Capital, contingent on meeting environmental, social, and governance (ESG) benchmarks.
If successful, this deal could create 200 direct jobs and 752 indirect jobs, while utilizing a recycling process that consumes 95% less energy than producing primary aluminium.
Since its launch in 2020, Manufacturing Africa has supported 41 investment deals in Nigeria, aiming to secure over $1 billion in foreign direct investment and create 38,000 direct jobs. Across Africa, the programme has facilitated nearly $2.4 billion in investment, leading to 102,000 new jobs.
UK Deputy High Commissioner Jonny Baxter emphasized the importance of a robust manufacturing sector in driving Nigeria’s economic growth.
Manufacturing Africa’s Team Leader, Thomas Pascoe, highlighted the development potential in African manufacturing, while TLG Capital Co-Founder, Isha Doshi, underscored AGIF II’s goal of providing flexible, strategic financing tailored to the African business landscape.
This initiative is set to accelerate industrial growth, create jobs, and position Nigerian manufacturers as viable investment opportunities.
Kuda has launched Kuda Business Perks, a new initiative aimed at providing Nigerian SMEs with discounted services to ease operational costs amid economic challenges. With rising inflation, FX instability, and sluggish consumer demand, small businesses are struggling to maintain profitability.
SMEs make up 96% of businesses in Nigeria and contribute nearly half of the country’s GDP, according to the National Bureau of Statistics (NBS) and SMEDAN.
However, a 2024 PwC Nigeria MSME Survey found that over 70% of Nigerian SMEs cite high operational costs as their biggest barrier to growth.
To address this, Kuda Business Perks offers discounted services across key business areas, including payments, inventory tracking, staff healthcare, and marketing.
Through partnerships with fintech providers like SeerBit and Paystack, as well as platforms such as Vendy, OneHealth, Lumi, and Braudit, SMEs registered with the Corporate Affairs Commission (CAC) and holding Kuda business accounts can access affordable tools to streamline operations.
According to Nosa Oyegun, VP of Product Innovation and Strategy at Kuda, the initiative is about providing practical solutions rather than generic rewards. He emphasized that small businesses need tools that work and pricing that makes sense, and Kuda is partnering with platforms that matter to lower cost barriers.
The rollout is happening in phases, with each perk addressing a core business need. For example, businesses using SeerBit through Kuda will enjoy lower transaction fees on local payments, while Paystack integration will help SMEs accept payments globally more efficiently.
Kuda Business Perks showcases how digital banking infrastructure can evolve beyond access to affordability, tackling one of the most pressing challenges for Nigerian SMEs today.
The Nigeria Civil Aviation Authority (NCAA) has announced that, from January 1, 2026, all local airports and airstrips operating without valid permits will face sanctions.
Speaking at the maiden Airstrip Owners/Operators Stakeholders’ Engagement in Lagos on Monday, Godwin Balang, Director of Aerodrome and Airspace Standards, said only a few of Nigeria’s 92 airstrips currently hold valid operational permits. These include operational, non-operational, and airstrips under rehabilitation or construction.
Balang stated that the Federal Airport Authority of Nigeria (FAAN) has been informed that, from 1 January 2026, local airports under its management without proper permits will be sanctioned. “FAAN has been apprised that effective from 1st January 2026, local airports without appropriate permits under its management would be sanctioned accordingly. This is not a threat but a collective resolve,” he said.
The NCAA noted that 68 of the 92 airstrips are federal government properties managed by the Ministry of Aviation and Aerospace Development, while 24 are owned by individuals and private organisations. The authority to enforce these measures comes from Section 71 (3) & (4)(a) of the Civil Aviation Authority Act 2022, which empowers the NCAA to certify aerodrome operations and set safety standards.
Balang addressed stakeholders’ pleas to review the N30 million permit fee and other charges to encourage investment. “I completely agree with you because by doing that it would look like the government will be making less money, but we are actually going to be making more money.
“We have a population of over 200 million people with conservatively less than three million people who are actively flying. So, it is also a big opportunity that if we are able to charge less, more people will be able to fly,” he said.
NCAA Director General, Capt. Chris Najomo, outlined the engagement’s goals: to improve communication with state and private airstrip operators, clarify regulatory requirements, address challenges, and promote global best practices.
“It is my fervent hope that these objectives will be fully realised and airstrip operations in Nigeria will, henceforth, be conducted in strict compliance with all regulatory provisions and global best practices,” he said.
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