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Route to Market & Supply Chain Blog

Unlocking Africa: Winning RTM Strategies for FMCG Growth

Posted by Michael Thompson on Fri, Oct 17, 2025

Africa is not one market—it’s 54.

Yet many FMCG companies still treat it as a monolith.

If you're serious about growth in Africa, it's time to rethink your approach.

Africa’s consumer base is young, urbanising fast, and increasingly brand-conscious. However,  unlocking this potential requires more than ambition—it demands a sharp, data-driven Route-to-Market (RTM) strategy, tailored to the continent’s diverse realities.

In this article, we’ll walk through a practical framework for FMCG market expansion in Africa, from market selection to execution.

mt-rtm-strategy-africa-linkedin-1920 x 1080

Analysis Phase – Where Should We Play?

1  Market Analysis Summary & Prioritisation Matrix

Start with a macro-to-micro lens. Evaluate markets based on:

  • Volume & Value: Nigeria and Egypt offer scale, while Kenya and Ghana show strong value growth.
  • Margins: Smaller markets like Rwanda or Botswana may offer niche, high-margin opportunities.
  • Growth Trajectory: Look at 3–5 year CAGR trends in FMCG categories.

Portfolio Fit: Align your product mix with local demand. For example, powdered beverages may outperform carbonated drinks in water-scarce regions.

Competitive Landscape: Who’s already there? What’s their share? Can you realistically compete—or disrupt?

Prioritisation Matrix: Once you have done the above, summarise and score markets across opportunity and ease of entry to identify your top 5 target markets.

The Role of AI

In the Analysis Phase of market expansion, AI plays a pivotal role by synthesising insights from three key data sources: internal organizational data, external public data, and external paid-for data.

Internally, AI can mine historical sales, distribution, and customer data to identify patterns in product performance, channel efficiency, and regional demand.

Externally, AI tools can scan public datasets—such as demographic trends, economic indicators, and social media sentiment—to enrich market understanding.

When it comes to paid-for data (e.g., Nielsen, Euromonitor, or Kantar), AI can rapidly process large volumes of syndicated data to benchmark competitors, assess category growth, and model market potential.

By integrating these sources, AI enables faster, more accurate market selection, sharper portfolio alignment, and more informed RTM strategy development—turning complexity into clarity.

2 Regulatory and Risk Assessment

Regulatory Framework: Understand import duties, labelling laws, and local manufacturing incentives. South Africa, for instance, has strict compliance requirements but offers robust infrastructure.

Risk Assessment: Political instability, currency volatility, and logistics challenges vary widely. Build mitigation strategies—like local partnerships or multi-currency pricing models—into your plan.  Assess risk likelihood and risk impact in your analysis.

Recommendation Phase – How Do We Play?

3  Go-to-Market (GtM) Recommendations

Channel Analysis: Traditional trade still dominates in many regions, but modern trade is growing in urban centres. E-commerce is rising, especially in North and East Africa.

Top Markets to Consider:

Depending on your sector, the Top Markets in Africa to consider may include:

  • Nigeria – Scale, youth population, and urbanisation.
  • Kenya – Innovation hub with strong retail infrastructure.
  • Egypt – Gateway to North Africa with growing middle class.
  • Ghana – Stable, English-speaking, and business-friendly.
  • South Africa – Mature but competitive; great for premium positioning.
  • Ethiopia – large and growing market. Ethiopia will be the 5th most poulist country in the world by 2050.

4  Pricing & Positioning Framework

Tailor pricing to local purchasing power. Use tiered pricing strategies and consider unit pack innovations (e.g., sachets) to drive trial and affordability.  Affordability is key in African markets.

Positioning should reflect local values—health, family, convenience, or status—depending on the market.

5  Market Playbook

For each priority market identified, develop a localised playbook:

  • Marketing Positioning: What’s your brand’s role in consumers’ lives?
  • Demand Creation: Leverage radio, influencers, and in-store activations.
  • Key Activations: Think mobile sampling units, market day promotions, and community engagement.

Execution Phase – How Do We Win?

6  Size of the Prize / Business Case

Estimate revenue potential using:

  • Population x Consumption per Capita x Market Share x Price
  • Adjust for distribution reach and promotional uplift

This helps justify investment and align internal stakeholders.

7  Strategy Roadmap & Execution Plan

By Market:

  • Define entry RtM model: direct, distributor-led, or Joint Venture for example.
  • Set 12–36 month milestones

Execution Timeline:

  • Phase 1: Market entry & brand awareness.  Distributor search and selection if the preferred model is indirect.
  • Phase 2: Distribution expansion
  • Phase 3: Portfolio deepening & margin optimisation

Support Plan:

  • Local talent recruitment
  • Distributor capability building
  • Digital tools for RTM visibility

Next Steps - Background to Distributor Selection & Management

After you have chosen your target markets in Africa, you will likely need to find and select Distributor Partners.

I have written about this in earlier articles.  We consider the three phases of Distributor Management & Selection as follows:

These phases follow the process that we call the A-B-C of Route to Market.  This model simplifies the world of RtM into a series of three steps that any RtM practitioner can execute.

Ready to Expand?

Africa’s FMCG landscape is complex—but the rewards are real for those who plan smart and execute with agility.

Africa is not one market—it’s 54.

Yet many FMCG companies still treat it as a monolith.

If you're serious about growth in Africa, it's time to rethink your approach.

Africa’s consumer base is young, urbanising fast, and increasingly brand-conscious. However,  unlocking this potential requires more than ambition—it demands a sharp, data-driven Route-to-Market (RTM) strategy, tailored to the continent’s diverse realities.

In this article, we’ll walk through a practical framework for FMCG market expansion in Africa, from market selection to execution.

Analysis Phase – Where Should We Play?

1  Market Analysis Summary & Prioritisation Matrix

Start with a macro-to-micro lens. Evaluate markets based on:

  • Volume & Value: Nigeria and Egypt offer scale, while Kenya and Ghana show strong value growth.
  • Margins: Smaller markets like Rwanda or Botswana may offer niche, high-margin opportunities.
  • Growth Trajectory: Look at 3–5 year CAGR trends in FMCG categories.

Portfolio Fit: Align your product mix with local demand. For example, powdered beverages may outperform carbonated drinks in water-scarce regions.

Competitive Landscape: Who’s already there? What’s their share? Can you realistically compete—or disrupt?

Prioritisation Matrix: Once you have done the above, summarise and score markets across opportunity and ease of entry to identify your top 5 target markets.

The Role of AI

In the Analysis Phase of market expansion, AI plays a pivotal role by synthesising insights from three key data sources: internal organizational data, external public data, and external paid-for data.

Internally, AI can mine historical sales, distribution, and customer data to identify patterns in product performance, channel efficiency, and regional demand.

Externally, AI tools can scan public datasets—such as demographic trends, economic indicators, and social media sentiment—to enrich market understanding.

When it comes to paid-for data (e.g., Nielsen, Euromonitor, or Kantar), AI can rapidly process large volumes of syndicated data to benchmark competitors, assess category growth, and model market potential.

By integrating these sources, AI enables faster, more accurate market selection, sharper portfolio alignment, and more informed RTM strategy development—turning complexity into clarity.

2 Regulatory and Risk Assessment

Regulatory Framework: Understand import duties, labelling laws, and local manufacturing incentives. South Africa, for instance, has strict compliance requirements but offers robust infrastructure.

Risk Assessment: Political instability, currency volatility, and logistics challenges vary widely. Build mitigation strategies—like local partnerships or multi-currency pricing models—into your plan.  Assess risk likelihood and risk impact in your analysis.

Recommendation Phase – How Do We Play?

3  Go-to-Market (GtM) Recommendations

Channel Analysis: Traditional trade still dominates in many regions, but modern trade is growing in urban centres. E-commerce is rising, especially in North and East Africa.

Top Markets to Consider:

Depending on your sector, the Top Markets in Africa to consider may include:

  • Nigeria – Scale, youth population, and urbanisation.
  • Kenya – Innovation hub with strong retail infrastructure.
  • Egypt – Gateway to North Africa with growing middle class.
  • Ghana – Stable, English-speaking, and business-friendly.
  • South Africa – Mature but competitive; great for premium positioning.
  • Ethiopia – large and growing market. Ethiopia will be the 5th most poulist country in the world by 2050.

4  Pricing & Positioning Framework

Tailor pricing to local purchasing power. Use tiered pricing strategies and consider unit pack innovations (e.g., sachets) to drive trial and affordability.  Affordability is key in African markets.

Positioning should reflect local values—health, family, convenience, or status—depending on the market.

5  Market Playbook

For each priority market identified, develop a localised playbook:

  • Marketing Positioning: What’s your brand’s role in consumers’ lives?
  • Demand Creation: Leverage radio, influencers, and in-store activations.
  • Key Activations: Think mobile sampling units, market day promotions, and community engagement.

Execution Phase – How Do We Win?

6  Size of the Prize / Business Case

Estimate revenue potential using:

  • Population x Consumption per Capita x Market Share x Price
  • Adjust for distribution reach and promotional uplift

This helps justify investment and align internal stakeholders.

7  Strategy Roadmap & Execution Plan

By Market:

  • Define entry RtM model: direct, distributor-led, or Joint Venture for example.
  • Set 12–36 month milestones

Execution Timeline:

  • Phase 1: Market entry & brand awareness.  Distributor search and selection if the preferred model is indirect.
  • Phase 2: Distribution expansion
  • Phase 3: Portfolio deepening & margin optimisation

Support Plan:

  • Local talent recruitment
  • Distributor capability building
  • Digital tools for RTM visibility

Next Steps - Background to Distributor Selection & Management

After you have chosen your target markets in Africa, you will likely need to find and select Distributor Partners.

I have written about this in earlier articles.  We consider the three phases of Distributor Management & Selection as follows:

These phases follow the process that we call the A-B-C of Route to Market.  This model simplifies the world of RtM into a series of three steps that any RtM practitioner can execute.

Ready to Expand?

Africa’s FMCG landscape is complex—but the rewards are real for those who plan smart and execute with agility.

💬 What’s your experience with FMCG distribution in Africa?

📈 Which markets do you see as the next big opportunity?

💬 Share your experiences or challenges in the comments.

📩 Let’s connect if you’d like to explore this for your organisation.

Tags: Route to Market, Michael Thompson, Doing Business in Africa, The ABC of RtM

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