G
Guest Contributor
Guest
With rapid improvements in telecommunications and the proliferation of mobile devices, internet access in Africa is reaching unprecedented heights. Statista projects that internet users in Africa will grow by 51%, hitting 1.1 billion by 2029. This exponential increase in connectivity has sparked a “Fintech eruption” on the continent, creating a dynamic landscape ripe with opportunity.
According to McKinsey, the number of African tech start-ups tripled between 2020 and 2021 to around 5,200, with funding rising to $2.4 billion by 2023. This sustained investment signals a robust and burgeoning market of over 1.5 billion people, expected to triple by 2050. However, the scale of this growth brings unique challenges: political and economic instability in key African markets can pose revenue risks. Many companies are diversifying across African and global markets to mitigate these risks. For instance, Klasha raised $2 million to fuel expansion into Asia, while Moniepoint secured $110 million to support its African growth ambitions.
As a seasoned marketing and growth strategist, I’ve been instrumental in steering market expansion initiatives at Klasha, Kuda, and Pesa. Through strategic and agile approaches, I achieved over 30% growth in customer base and revenue for core products. Here, I outline a proven blueprint to help companies successfully launch digital products across borders.
Step-by-Step Approach to a Successful Cross-Border Digital Product Launch
1. Conduct Thorough Market Research: Lay the Foundation for Success
A successful product launch rests on understanding three foundational pillars: the product, the market, and the consumer. Start by identifying your target audience in the new market—audiences can vary dramatically due to economic, cultural, and social factors. Engage local research firms to conduct in-depth market and audience analysis, helping you define unmet needs and competitive gaps. A nuanced understanding of local market dynamics will sharpen your unique value proposition (UVP) and reveal the clearest path to differentiation.
Customise Your Product for Local Preferences
Define whether to localise your product for the new market or maintain a standard offering. Will you adapt your product to reflect the interest, standards, regulations, and pricing for the new market, or will you deploy a standard product that is not different from that in your home country? For example, Paystack just announced bank transfers for its Kenyan users. This feature has been available to Nigerian consumers. Klasha recently enabled M-PESA payment options for businesses in Kenya and Zambia, a feature Nigerian users do not need yet. Adapting your product to meet local market requirements may be expensive, but it might help you navigate the rigid payment market regulations.
3. Leverage Strategic Partnerships for Efficient Market Entry
Many tech companies are entering new African markets to hedge against domestic volatility. In February 2024, Techpoint announced Fairmoney’s intention to acquire Umba, a Kenyan and Nigerian digital bank, to expand into the Kenyan market. Tech companies can quickly secure regulatory approvals, licenses, and local acceptance by partnering with or acquiring local firms. Partnerships with financial institutions, payment processors, and other stakeholders enhance credibility, expand product offerings, and help navigate regulatory landscapes. Strategic alliances are invaluable to accelerate market entry and build brand trust.
4. Design a Winning Go-To-Market (GTM) Strategy
Once market research and partnerships are in place, a robust GTM strategy becomes essential. Deploy a multi-channel marketing plan that meets consumers on their preferred platforms, with a mix of digital advertising, localised content, and influencer marketing to build brand presence. Use performance metrics like customer acquisition cost (CAC), engagement, and retention to gauge effectiveness. Flexibility is crucial—adapt campaigns based on insights from real-time feedback. An agile, customer-centric GTM strategy allows for rapid iteration, making it easier to adapt to unexpected shifts and maintain strong momentum in a new market.
5. Track and Optimize Marketing Performance for Sustained Success
Data is your guiding compass. An optimised digital product launch is only possible through rigorous performance tracking. Identify high-ROI campaigns, understand channel effectiveness, and monitor metrics like active users, top-performing products, and engagement trends. Tools like Metabase, AppsFlyer, Mixpanel, and Google Analytics empower you to capture and analyse data, enabling continuous improvement. Optimisation is a cyclical process—use insights to refine strategies, adjust tactics, and drive sustained growth.
By combining local market insights with an agile, data-driven approach, companies can achieve efficient market entry, reduce acquisition costs, and secure long-term growth in diverse global markets. Following this blueprint, you can position your product for success, even in the face of cross-border complexities.
About the author
Aroghene Favour Okoro-Ndulu is a seasoned product and growth marketing professional with eight years of experience driving product growth and strategic market expansion in the payments and fintech sectors. Aroghene is skilled at leveraging local insights and identifying strategic growth opportunities to increase revenue and market share.
See also: Youverify Wins Prestigious GRC and Fincrime Award
According to McKinsey, the number of African tech start-ups tripled between 2020 and 2021 to around 5,200, with funding rising to $2.4 billion by 2023. This sustained investment signals a robust and burgeoning market of over 1.5 billion people, expected to triple by 2050. However, the scale of this growth brings unique challenges: political and economic instability in key African markets can pose revenue risks. Many companies are diversifying across African and global markets to mitigate these risks. For instance, Klasha raised $2 million to fuel expansion into Asia, while Moniepoint secured $110 million to support its African growth ambitions.
As a seasoned marketing and growth strategist, I’ve been instrumental in steering market expansion initiatives at Klasha, Kuda, and Pesa. Through strategic and agile approaches, I achieved over 30% growth in customer base and revenue for core products. Here, I outline a proven blueprint to help companies successfully launch digital products across borders.
Step-by-Step Approach to a Successful Cross-Border Digital Product Launch
1. Conduct Thorough Market Research: Lay the Foundation for Success
A successful product launch rests on understanding three foundational pillars: the product, the market, and the consumer. Start by identifying your target audience in the new market—audiences can vary dramatically due to economic, cultural, and social factors. Engage local research firms to conduct in-depth market and audience analysis, helping you define unmet needs and competitive gaps. A nuanced understanding of local market dynamics will sharpen your unique value proposition (UVP) and reveal the clearest path to differentiation.
Customise Your Product for Local Preferences
Define whether to localise your product for the new market or maintain a standard offering. Will you adapt your product to reflect the interest, standards, regulations, and pricing for the new market, or will you deploy a standard product that is not different from that in your home country? For example, Paystack just announced bank transfers for its Kenyan users. This feature has been available to Nigerian consumers. Klasha recently enabled M-PESA payment options for businesses in Kenya and Zambia, a feature Nigerian users do not need yet. Adapting your product to meet local market requirements may be expensive, but it might help you navigate the rigid payment market regulations.
3. Leverage Strategic Partnerships for Efficient Market Entry
Many tech companies are entering new African markets to hedge against domestic volatility. In February 2024, Techpoint announced Fairmoney’s intention to acquire Umba, a Kenyan and Nigerian digital bank, to expand into the Kenyan market. Tech companies can quickly secure regulatory approvals, licenses, and local acceptance by partnering with or acquiring local firms. Partnerships with financial institutions, payment processors, and other stakeholders enhance credibility, expand product offerings, and help navigate regulatory landscapes. Strategic alliances are invaluable to accelerate market entry and build brand trust.
4. Design a Winning Go-To-Market (GTM) Strategy
Once market research and partnerships are in place, a robust GTM strategy becomes essential. Deploy a multi-channel marketing plan that meets consumers on their preferred platforms, with a mix of digital advertising, localised content, and influencer marketing to build brand presence. Use performance metrics like customer acquisition cost (CAC), engagement, and retention to gauge effectiveness. Flexibility is crucial—adapt campaigns based on insights from real-time feedback. An agile, customer-centric GTM strategy allows for rapid iteration, making it easier to adapt to unexpected shifts and maintain strong momentum in a new market.
5. Track and Optimize Marketing Performance for Sustained Success
Data is your guiding compass. An optimised digital product launch is only possible through rigorous performance tracking. Identify high-ROI campaigns, understand channel effectiveness, and monitor metrics like active users, top-performing products, and engagement trends. Tools like Metabase, AppsFlyer, Mixpanel, and Google Analytics empower you to capture and analyse data, enabling continuous improvement. Optimisation is a cyclical process—use insights to refine strategies, adjust tactics, and drive sustained growth.
By combining local market insights with an agile, data-driven approach, companies can achieve efficient market entry, reduce acquisition costs, and secure long-term growth in diverse global markets. Following this blueprint, you can position your product for success, even in the face of cross-border complexities.
About the author
Aroghene Favour Okoro-Ndulu is a seasoned product and growth marketing professional with eight years of experience driving product growth and strategic market expansion in the payments and fintech sectors. Aroghene is skilled at leveraging local insights and identifying strategic growth opportunities to increase revenue and market share.
See also: Youverify Wins Prestigious GRC and Fincrime Award