Africa focus: differentiation vs standardisation

Africa focus: differentiation vs standardisation

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DIFFERENTIATION VS. STANDARDIZATION


To talk about a one-size-fits-all solution for Africa overlooks the nuances in each market. With so many differing economic conditions and technological infrastructures, suppliers must prepare for a range of contrasting realities across different territories, Altenar Chief Operating Officer Dinos Stranomitis tells iGB.


Considering the size and scale of Africa, and the differing player habits across the continent, how do you go about developing a solution that can succeed in as many different markets as possible?

Differentiation versus standardization is key. You might have a standard solution with core elements that are consistent across all countries. Then you need to offer several unique features to meet the specific needs and preferences of the local population. It sounds a bit difficult, but it isn’t really—if you execute each project with proper attention and analysis.


Draw-based games are arguably as popular, if not more so, in markets such as Nigeria. Do you cater to those tastes?

Nigeria is a unique landscape and shouldn't be seen as representative of all of Africa. In Nigeria, draw-based games are essentially bets with a short play cycle, which is why people love them. They’re especially popular in markets with lower levels of trust, where players need to know right away if they’ve won. Simply put, they don’t want to leave the shop before their bet is settled. That’s the main reason these games thrive there.


Internet and smartphone penetration in some countries is particularly low, so have you made any effort to develop SMS or WAP-based solutions for these territories? And can this sort of solution be integrated with more modern technology?

It’s definitely a challenge to reach users who don’t have access to the latest technology. We conducted an in-depth analysis and developed a front end that enables low-bandwidth devices to place bets.

At first, we couldn’t believe it, but in Africa, having a data-saving version of your website is essential for gaining popularity. It may not make much sense from a tech standpoint, but from a business perspective, it’s what works.


With retail being so popular in countries such as Nigeria, Tanzania, and South Africa, how can you drive adoption of online and mobile gambling—or does this require macroeconomic change to facilitate it?

You don’t need to go that far. It’s more about adopting a hybrid system that allows customers to place bets via low-end devices in a shop or on their mobile.

Tickets can be prepared online and, instead of being validated immediately, a scanning device transmits the ticket details to the cashier, who then validates the ticket on behalf of the customer. It may sound complex, but a quick demo clears up any confusion.


Is there more value in competing in the largest markets, such as the UK and Italy, or targeting growth in emerging territories? And do you see your efforts in Africa as being immediately beneficial to revenue growth or as a long-term project?

Africa is definitely a long-term project. Europe is generating revenue now, while Africa will generate revenue in the future. The average African consumer is evolving faster than the average European consumer. This means that, initially, signing an African operator brings in less profit than a European one. However, over time, the potential for significantly higher profits is there.


Which markets have you found to be particularly successful? And which do you see as becoming successful in the future?

Altenar supplies licensed operators in Nigeria, Madagascar, the Democratic Republic of the Congo, and Ghana. We also have deep knowledge of Zimbabwe and Tunisia and are awaiting licensing opportunities there.

Other countries we see as promising for future success include Kenya, Tanzania, and Uganda. We believe our systems can definitely help operators thrive in those markets.


Considering Altenar’s regulated market footprint, how have you found regulatory processes in Africa? Do you feel these lag behind other jurisdictions?

It depends on your perspective. Our experience in Nigeria was actually quite positive—they seem to have a solid regulatory framework. I’d say they’re quite savvy; they understand that if you hold a license in the European Union or Great Britain, they can verify a few things and trust that your systems are credible.


And who is competing? Do you see local brands leading, or are international providers more popular?

It’s a mix of both. In most territories, you need a local partner. Once you have the right partner, everything becomes easier. Trying to operate directly from Europe makes it harder to build trust and grow.

Contrary to popular belief, Africa requires significant investment if you really want to gain deep market penetration.


Are your clients on the continent local brands, or are they partners from other markets who you are helping to expand into African countries?

Altenar mainly works with local brands in Africa. Often, those brands have international investors, but a local approach is definitely the key to success.


For new entrants, do you get many inquiries from operators that work with different providers in other territories to power their African sites or businesses?

Once you gain recognition and success in a market, inquiries start pouring in. Word of mouth is vital to success in Africa.

Inbound requests are a mix of start-ups with moderate potential and existing operators looking to level up by working with a higher-quality provider—one that can offer a more profitable future. 


Written by iGB

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