Article by Massimiliano Luce
Sabaf is seizing various business opportunities in the African market to strengthen its presence in the region. “Africa is experiencing rapid expansion, fuelled mainly by several key factors. It is estimated that, in the next decade, the African population will represent 21% of the world population, compared to 13% in 2000 and 9% in 1950 – declares the Sabaf Africa Panel (formed by Luca Gorini, Executive Regional Sales Director; Steven Monkton, Regional Sales Manager; Camilla Tomasi, Jr Product Manager; Mahmoud Osama and Abdel Ghaffar Osama, Egypt Sales Representatives) –. Demographic growth and the presence of a young population, increasingly urbanised and open to the adoption of new technologies, are creating a strong demand for innovative solutions for the home. Younger families are looking for modern and efficient solutions.
Secondly, consumption patterns are evolving. Homes are becoming more compact and functional, with a growing preference for built–in solutions over traditional free-standing ones, while local regulations are favouring innovation, creating space for more advanced technological solutions.
In fact, international companies now see Africa as a growth market and are investing in local production facilities, helping to create jobs and stimulate the economy. “Another key factor is the low cost of labour in many African regions, which allows companies to produce at low cost, increasing competitiveness and opening up opportunities to expand volumes at advantageous prices. Africa is also becoming a strategic commercial and logistical hub. Countries such as Morocco, South Africa and Egypt are consolidating their position as distribution centres for the continent, facilitating the flow of products and services”.
Tailored business strategies
Clearly, Africa is an extremely diverse continent, with very different economic macro–areas. “Given the characterisation into economic macro-areas, we don’t adopt a single approach. To date, for example, Sabaf has a strong presence in Arab countries, but does not yet have a structured presence in all African markets. We are looking with great interest at the opportunities that the entire continent offers, trying to understand how to adapt our range of components by combining consumer needs (robustness, ease of use, cost) with an attempt to influence them in terms of innovation, sustainability and environmental impact”.
Italian quality and local partners
African demographic growth is a driving force for consumption and industrialisation. The question now is how Sabaf plans to seize this opportunity in the household appliance sector. “By strengthening local relationships. Sabaf has been collaborating with the main African household appliance manufacturers for over fifty years, but our objective goes beyond a mere relationship with our customers. We want to build a solid network with local suppliers too, creating strategic partnerships that will allow us to be more integrated into the African economic fabric. We also aim to form alliances with local associations that can help us better understand the specific characteristics of the various markets and improve our offer. Our brand awareness objective also involves collaboration with universities, training organisations, regulatory institutions, development agencies and NGOs.
Another fundamental step will be our participation in the main trade fairs in Africa, a crucial opportunity to come into direct contact with local and international organisations, explore new opportunities and consolidate our presence on the continent”.
