Market analysis of selected African countries
Wintersemester 2019 - FESTO Didactic
The purpose of this project was to complement and expand the analysis of the African education market that had been conducted during the previous term.
Starting the project work in March 2019, Festo Didactic proposed 20 from the total of 54 African countries for a market analysis. These were ranked according to their Human Development Index (HDI) and the best 10 countries got selected for a first analysis. In the following, the group developed an index reflecting the development of each country in order to narrow the number of countries analysed in detail down to the five most promising education markets.
The previous work focused on Morocco, Tunisia, South Africa, Kenya and Ghana whereas this report analyses in detail the education market potential of Egypt, Uganda, Angola, Nigeria and Botswana.
The countries concerned were analysed using the PESTED framework which represents an adjustment of the commonly used PEST framework (Political, Economic, Social and Technological Factors). In addition to these factors the educational situation (E-Education) and the country’s development status (D-Development) were taken into consideration because they play a significant role for future investments of Festo Didactic and the conditions under which the company will operate.
In order to give a detailed insight into the current business opportunities of each country, there were evaluated three core segments: Business to Business (B2B), Business to Government (B2G) and Business to Development (B2D).
Subsequently, the ten countries were benchmarked with Vietnam, representing a developing country where Festo Didactic is already operating. For this purpose, the EMP Index elaborated by the previous group was altered and improved with special regard to factors determining the educational and developmental status of the countries concerned. This direct comparison visualises not only the current PESTED situation in each of the investigated countries but also the resulting potential. It allows a rough estimation of future success taking into consideration the numbers and data of the current operations in Vietnam.
As developing countries show enormously quick changes in economic, social, technological as well as educational fields due to immense developmental investments, this report tries to give an outlook on the prospective trends. Four categories were established and complemented with the according data until 2023, forecasting the economic, technological, educational and developmental trends. Indeed, the speed of change differs significantly in the countries analysed which is definitely an important aspect for Festo Didactic to consider investing in long term projects. Based on these trends, our strategic recommendation is to enter the educational market in Botswana, Egypt and Tunisia.
Dr. –Ing. Nader Imani
Executive Vice President Global Education
Klaus Marhold, P.hD.
Shtefi Mladenovska, M.Sc.
Caroline Fabian, M.Sc
Daxeder, Johannes Robert
Kick, Alexandra Maria
Tzschetzsch, Timo Nikolai