Treasury Priorities for Multinational Corporations - Middle East and Africa

Treasury Priorities for Multinational Corporations | 19 Sales Models Sales models across the Middle East and Africa demonstrate a multifaceted and evolving strategy. While Business-to-Business (B2B) relationships remain foundational, highlighting the region’s strong reliance on traditional enterprise-level engagements, organizations are also significantly leveraging indirect channels through distributors and wholesalers. Furthermore, the market is actively engaging in direct-to-consumer (B2C) sales, indicating a diversified approach and adaptation to various market segments. • Regional Variations: Across both North Africa and Sub-Saharan Africa (SSA), sales strategies prominently feature the use of intermediaries. Specifically, the strong reliance on distributors and wholesalers in North Africa, and their even more critical role in SSA, underscores the strategic necessity of these channels for effectively penetrating and navigating the diverse and fragmented markets within these sub-regions. The prevalence of this practice stems from both the underlying business model and the prevailing perception of counterparty risk, consequently driving the demand for Letters of Credit. A notable example is the higher incidence of LCs observed in the SSA region, attributable to its perceived elevated risk. • Industry-Specific Reliance: Across various sectors, there’s a clear divergence in preferred sales models: the Consumer, Healthcare, and Building Products and Materials industries heavily lean on distributor and wholesaler networks, signifying the critical role of these intermediaries in their market reach. In contrast, the Communications, Technology, and Transportation sectors predominantly prioritize direct Business-to-Business (B2B) sales, highlighting their strategic focus on direct client relationships. This indicates that industry-specific dynamics largely dictate the most effective sales approaches. While still a developing channel, e-commerce platforms are gaining traction, with 13% of all respondents incorporating them into their sales models. Interestingly, the adoption of e-commerce varies significantly by sector. While 32% of transportation companies are leveraging e-commerce, a surprisingly low 17% of technology companies reported doing so, suggesting a slower adoption curve in a sector one might expect to be at the forefront of digital sales. Preferred sale model 70% 60% 50% 40% 30% 20% 10% 0% Sales to other businesses (B2B) Direct sales to consumers (B2C) Online via e-commerce platforms Through distributors or wholesalers Through retail partners Other 58% 40% 37% 15% 13% 9%