Licensing Seeks to Expand in Africa
By Mark Seavy
Brand licensing is a global business. In certain territories, however, it is still difficult to sign wide-reaching agreements. In Africa, for example, where dozens of languages are spoken across 54 countries, inking deals remains, for the most part, a regional effort.
That could change with the African Continental Free Trade Area agreement, which has been ratified by 47 countries since 2021 and is designed to create cross-border economies. In fact, the agreement’s goal is to boost intra-Africa trade 52.3% by 2025. But with the requirements of various local cultures and customs, the expansion of licensing in the region is a long-term effort.
Another step toward broadening licensing’s reach in Africa was the recent Brand Licensing Africa event at the Abidjan Exhibition Center in Côte d’Ivoire, Ivory Coast. The summit brought together the chambers of commerce from 17 African countries and attracted 25 exhibitors and 1,000 attendees.
“Every country is its own continent with its own set of needs so, for me, it is a 10-year plan and studios need to focus on, first and foremost, how does your content look in the region you are targeting? And you need to focus on who is watching your content,” said Cindy Radmall, CEO at Revolution Licensing and Advertising in South Africa, where it represents Warner Bros. Discovery. “Licensing is 100% an opportunity in Africa. But is it something for someone who is looking for new territories in which to make a quick buck? Probably not.”
Indeed, much of the entertainment content that might be fodder for licensing in the region is delivered via YouTube, satellite, streaming, or free-to-air, which presents a challenge because not every country receives it in the same manner. Yet there have been breakthrough brands in the region.
In Kenya, for example, Kukua Studios’ animated series Super Sema was first released on YouTube in 2021, where it gained 262,000 subscribers and amassed 115 million views, ultimately inking two licensing deals. Just Toys released Super Sema dolls and ran a promotional campaign with Kenyan actress Lupita Nyong’o (12 Years a Slave, Black Panther, A Quiet Place: Day One), while Penguin Random House has released nine children’s titles inspired by the property.
On the corporate side, Coca-Cola South Africa debuted the Coke Threds fashion collection featuring designers Rich Mnisi, Mpho Makua and Itumeleng Riseng’s Styla Gang Original Designs (S.G.O.D.), Sol-Sol, and Melissa Kieser’s Maylee label.
A key to success in the territory has been delivering content in native languages. The most common languages spoken in Africa include Swahili (200 million speakers), Yoruba (45 million), and Fula (35 million). Cartoon Network’s Ben 10 series first aired in South Africa in 2006 in English, a language widely spoken in the country. But Rabobi, a version of Spider-Man, launched in the Xhosa language in South Africa when it aired on TV1 in the 1980s.
“It has to be done on a country-by-country basis, and you have to create some kind of platform to reach the people making the decisions,” said Charles Owona, Lead Partner at the agency Valor-Intangible, which helped organize Brand Licensing Africa. “The main challenge is you need to be able to open the right door and get into the country.”
And, after having entered a country, licensing programs must then adhere to local customs as well as local laws. A sticker program in Kenya proved popular but ultimately ran afoul of tribal leaders and sales quickly declined, a licensing executive said.
“You are dealing with tribal and cultural issues in some countries, and you have to take that into consideration,” the licensing executive said. “If you are looking for growth because your business is saturated in other markets, you may look at Africa. But Africa is not a cut-and-paste market, and you must get to know the cultures.”
Education is also needed to ease studio concerns about counterfeiting, which, like licensing, will require countries to work together, licensing executives said. Cameroon, for example, recently announced a national crackdown on counterfeit medicines and cosmetics starting with its capital, Yaoundé. More than 600,000 tons of counterfeit drugs were seized in 2021, according to Cameroon officials.
“It’s not just a legal problem but one that consumers in Africa need to be more conscious of because it can affect them as well,” Owona said. “The standard [for counterfeiting] is not the same as other countries and we have to bring them all to the table get this done [before licensing can take hold].”