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Manufacturing

With a burgeoning consumer market of over 170 million people and over 40 million middle class consumers, the Nigerian consumer market is one of the largest markets in the African region and one of the fastest growing and under-tapped markets in the world. According to the McKinsey Global Institute (MGI), over the next 15 years, Nigeria’s consumption is expected to experience tremendous upsides, growing from $400 billion per year to more than $1.4 trillion per year. This growing consumer market presents tremendous opportunities for players in the manufacturing space.

Companies in the Nigerian manufacturing market space are however faced with myriad challenges including the need to remain nimble and flexible amidst evolving economic and political environments, commodity price fluctuations, foreign exchange risks, the need to institute and maintain business operations that allow for maximum value creation, the need to connect with consumers in innovative and creative ways amidst increasing competition and the need to remain abreast of opportunities in the marketplace.

Sawubona works with clients to tackle these industry challenges by developing engagement approaches that speak directly to the client’s issues. With a broad range of services comprising advisory, digital, venture support and research, our focus is on delivering enduring results to our clients.

Citizens Electronics

Citizens

Citizens Electronics was for many years, one of the largest importers of consumer electronics in Nigeria. In 2014, the business decided to start local assembly / manufacture of consumer electronics.

With the snack segment being a huge part of the middle class opportunity in Nigeria, Quartermasters Group of which Citizens Electronics is a subsidiary business sought to expand into the food manufacturing industry through the setup of Orange Palm Limited

Growth Planning: Sawubona was engaged as the strategic adviser for the project. Sawubona developed a strategic plan, highlighting the market opportunities, competitive and regulatory forces and potential risks. The strategic plan also contained a competitive and operational strategy for the business, as well as a 5-year financial plan for the enterprise.

Growth Planning: The business also engaged Sawubona to act as an external consultant for the expansion of its value proposition to the food segment of the Nigerian consumer market. Sawubona developed a business plan for the Citizens’ food subsidiary, Orange Palm Limited for the production of Wheatmeal, Peanut Butter, Plantain Flour and Chin Chin, a staple Nigerian crunchy, deep-fried snack. The business plan captured the market opportunity, competitive assessment, economic viability, strategy and business model to capture value in the snack segment.

The strategic plan is the basis for the company’s current fundraising activity with local commercial banks.

With Sawubona’s advice and direction, the company is currently in talks with local commercial banks in a bid to obtain funding for this business opportunity.

Refem

refem

Refem is a manufacturer and exporter of tea inputs to European markets. In a bid to also take advantage of Nigeria’s consumer market, the company decided to expand its value proposition to include the importation and distribution of finished tea in Nigeria.

Growth Planning: Sawubona was engaged to provide strategic growth planning services for Refem. Our consultants undertook economic, market and industry analysis and based on this, provided the client with a niche market opportunity for the product. Our consultants also advised the client on the organisational structure to optimise the market opportunities as well as project phasing in light of the difficult FOREX regime importers have had to deal with.

The client had a good understanding of the niche market position to compete in. Also, with different price scenarios played out in the plan, the client could project breakeven point for the investment, and improving capital efficiency of the investment decision.

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