Manufacturers must adapt to market needs in Africa

South African manufacturers would have to learn to adjust and be more flexible if they wanted to increase exports into Africa, said Duncan Bonnett of Whitehouse & Associates. Speaking at a recent China in Africa conference, Bonnett said China had overtaken South African exports into the continent due to a variety of reasons, but also because they were flexible and willing to adapt to satisfy the market they were serving. “In 2000, South African exports into Africa were slightly larger than China’s at about $3.9 billion to their $3.6 billion. By 2006, however, China was exporting roughly double what we were and, by 2009, three-and-a-half times more.” Citing the sale of cooking oil in Nairobi in Kenya as an example, Bonnet said China had invested a lot of time and effort into understanding its African market. “They have learned that people in Nairobi want to buy their cooking oil by the scoop and not by the bottle and, therefore, have catered for that very need. They understand the fundamentals of doing business. But, more than that, they know Africa.” He said many South African manufacturers, on the other hand, failed to meet the market need due to their inability to change. “It’s the Henry Ford option – and, as long as we refuse to change, we will miss out on opportunities to grow our African market.” He said while some manufacturers were starting to adapt, it was not happening fast enough.