The Mismatch Between Research and Market Execution in Subsaharan Africa

It’s undeniable that Africa’s research ecosystem holds vast potential. Researchers across the continent are developing innovative solutions to pressing challenges in agriculture, health, renewable energy, and other key sectors. Despite these breakthroughs, the commercialization of these innovations lags significantly, preventing them from reaching the market and realizing their full impact. The primary culprit? The persistent obstacles in the commercialization process.

Today’s marketing professionals are more educated and agile than ever before. They understand market dynamics, adapt quickly to new trends, and recognize that data plays a pivotal role in driving the commercialization of research. These professionals often have the fortitude to navigate complex market environments, leveraging insights to accelerate growth. However, despite their competence and strategic efforts, many research products destined for commercialization still falter, and the blame is often misdirected toward the "space" or the market when, in reality, deeper issues exist.

The problem lies not in the market's receptiveness but in the disconnect between research outputs and the commercialization process itself. While marketing professionals subscribe to the belief that data is critical for commercialization, the transition from research to product development frequently breaks down due to structural inefficiencies:

It's become commonplace to skim through well-packaged research reports that outline the pull and push factors in markets such as demand, supply, and the influence of regulations, both formal and informal. On the flip side, it's important to acknowledge that financial institutions and fast-moving consumer goods (FMCG) companies have invested heavily in market research, creating specialized departments focused on understanding consumer behavior, and preferences that can tell the loyalty shifts, customer retention rate, the size they occupy and growth. With this level of insight, one would assume that research is being fully commercialized to its potential.

But here’s the critical question: If market research is being done so thoroughly and systematically, why aren’t all research products or innovations being fully commercialized? Are we truly maximizing the potential of the research, or is there something larger and an unaddressed barrier that's holding them back?

It’s time to reassess the shift from the old to the new research mindset. The traditional approach focused on academic outputs like publications, with little regard for practical market applications. In contrast, today’s mindset emphasizes innovation, market applicability, and real-world impact. The new perspective encourages collaboration with industry, data-driven decision-making, and designing research with commercialization in mind. The big burning question is, is there a supporting culture within the corporate space to drive this, and enough expertise to set the table to create a form and structure for commercialization to thrive?

However, it’s unfortunate that this creates a catch-22 scenario: while the new research mindset calls for collaboration with industry and market-driven solutions, the existing corporate culture may lack the support and expertise needed to effectively implement these changes. This paradox means that even with a commitment to innovation, research may still struggle to find its way to the market without the proper infrastructure and culture to support it.

Making my head spin, I firmly believe in the value of seeking options and insights from individuals who have not only studied a subject but have also lived it, bringing years of experience to the table. Their firsthand knowledge and practical understanding can provide invaluable guidance and perspective, making them a trusted resource for navigating complex challenges and making informed decisions.

In a recent conversation with Mr. Steve Johnson, Managing Director of Frontline Research Group International, established in 1996, is a leading full-service market research company in Africa, having surveyed over 2,560,943 outlets across 28 countries in Sub-Saharan Africa. They serve clients in 22 industries, including major global corporations, and provide insights into both modern and informal markets. With expertise in 56 languages, the firm effectively navigates Africa's diverse cultural landscape, transforming extensive data into actionable marketing, sales, and management tools that drive business success.

In our engagement, Mr Steve addressed the issue of the significant gap between market research and its commercialization in Africa. He emphasized that, despite progress in data collection and analysis across the continent, translating these insights into actionable business strategies remains a formidable challenge.

He identified several key drivers contributing to this issue:

1. Limited Access to Comprehensive Data On the issue of data availability, he noted that market research in Africa often suffers from a lack of comprehensive and reliable data. He pointed out that many companies do not have the necessary resources to utilize market data on a large scale, leading to gaps in understanding consumer behavior, market trends, and economic conditions at actionable levels. He stressed that while a high-level overview may be available, this information is insufficient for making substantive decisions, resulting in businesses struggling to make informed choices that could drive positive commercialization and return on investment (ROI).
2. Insufficient Data Processing and Analysis Capabilities Regarding the capabilities for data processing and analysis, he highlighted that even when data is accessible, there is frequently a shortage of skilled professionals and advanced technologies needed to process and analyze this information effectively. He mentioned that transforming raw data into actionable insights requires sophisticated tools and expertise, which are often not available in many African countries. Consequently, companies may find themselves relying on external suppliers, leading to high costs and potential misalignment with the unique nuances of specific African markets. He underscored that this limits businesses' ability to derive meaningful conclusions that can inform their strategies and help them recoup their investments in research initiatives.
3. Weak Integration of Market Insights into Business Strategies On the subject of integrating market insights into business strategies, he noted that a disconnect often exists between market research findings and their application in decision-making processes. He pointed out that while companies may collect valuable data, they frequently fail to integrate these insights into their strategies. This is especially true among large corporations, where data can become “lost” or underutilized across departments, resulting in wasted expenditures on data acquisition. He emphasized that this disconnect can arise from a lack of understanding of how to apply data insights or a reluctance to alter established business practices based on new information.

Funding is one of the factors, but it is not the core issue; rather, the absence of structured frameworks leads to missed opportunities for financial support. When robust systems are in place, funding naturally follows. In a world grappling with pressing economic challenges, investing in Africa’s youth can serve as a long-term systemic solution.

With over 70% of Africa’s population under the age of 35, the potential of our young people is immense. The World Economic Forum projects that by 2030, young Africans will constitute 42% of the global youth demographic, and by 2100, they could equal twice Europe’s entire population, representing nearly half of the world's youth. If adequately trained, these young professionals can shift our focus from merely conducting research for quarterly reports and global accolades to fostering a narrative that drives profitability within the continent.

By equipping our youth with the necessary skills and resources, we can empower them to transform research insights into viable market solutions, effectively harnessing their potential to drive economic growth and innovation in Africa. This strategic investment will not only bridge the commercialization gap but also ensure that Africa reaps the benefits of its most valuable asset, its youth.