Commodity Trap: Why African Businesses Are Failing at Global Brand Differentiation, By Demola Akinbola

Brand expert Demola Akinbola warns that African enterprises are losing billions by treating their products as cheap commodities rather than globally differentiated brands.

The vast majority of enterprises across Africa continue to haemorrhage market share and potential revenue by treating their products as basic commodities rather than differentiated global brands, leading industry specialists warn.

Speaking on the strategic value of reputational equity, Demola Akinbola, CEO of BrandStewards Limited and a highly regarded reputation management consultant, outlined the critical disconnect preventing indigenous companies from competing effectively on the international stage. With 35 years of experience spanning corporate communication, crisis management, and digital marketing, Akinbola argues that executives routinely confuse superficial marketing with structural brand building.

The Commoditization Crisis

The core of the issue lies in value perception. When a product or service fails to establish a unique emotional and practical resonance with its target audience, it immediately defaults to a price war—a battle that local manufacturers rarely win against mass-produced imports.

“The essence of branding is for individuals and organizations to project their unique and differentiating attributes,” Akinbola stated following the launch of his seventh book, Communicating to WIN in Career & Business, in Lagos. “A product or service has to be well-differentiated for it to be a brand in the real sense of it. Otherwise, it becomes a commodity that is not in any way different from other products in the market.”

He noted that while true brands thrive by consistently delivering unique benefits and value creation, commodities are forced to compete purely on pricing and geographical availability.

Three Pillars of Effective Brand Positioning

For African enterprises looking to scale into European, North American, or intercontinental markets under the African Continental Free Trade Area (AfCFTA), a rigid adherence to branding fundamentals is non-negotiable.

• Strategic Differentiation: Identifying and relentlessly communicating the specific problem the business solves better than any competitor globally.
• Value Creation over Cost Reduction: Shifting the corporate focus from offering the cheapest option to offering the highest measurable value, justifying premium pricing.
• Reputational Consistency: Maintaining strict quality control and aligned corporate messaging across all stakeholder touchpoints, from customer service to investor relations.

Global Ambitions and the Diaspora Market

The failure to properly brand restricts African companies from capturing the highly lucrative diaspora markets in the UK, USA, and Australia. Whether it is Kenyan coffee, Nigerian fintech solutions, or South African creative exports, the lack of distinct branding often results in raw materials or base services being exported cheaply, only to be repackaged and sold back at a massive premium by foreign entities.

To combat this knowledge gap, Akinbola recently launched the Nigerian Brand Academy, an online development platform designed to equip professionals with advanced reputation management methodologies. He emphasized that branding is not exclusively for corporate monoliths; it is equally vital for startups and individual professionals navigating the modern gig economy.

“God did not create any useless human being,” Akinbola concluded. “It behooves us to identify our unique attributes, develop them, and leverage them to build strong brand equity. A winning brand is the one that passes the two major tests of differentiation and value creation.”

Source: streamlinefeed.co.ke