Cracking the code: Pricing strategies that unlock growth in emerging markets.
INTRODUCTION
Pricing is often sidelined in business strategy—seen as a tactical detail rather than a central lever. But in emerging markets, where consumer behavior, infrastructure, and cost dynamics vary widely, pricing isn’t just a number, it’s a foundation.
Studies show that poor pricing and positioning feature among the top reasons why companies entering new geographies fail (McKinsey: Reimagining economic growth in Africa, 2023, McKinsey).
Let’s explore three cases; Jumia, M-Pesa, and Shoprite, that illustrate how pricing has either eroded growth or enabled sustainable success.
CASE 1: JUMIA — WHEN GROWTH OUTPACES SUSTAINABLE PRICING
Jumia, often described as “Africa’s Amazon,” raised hundreds of millions in investment and went public in 2019 at a valuation of $4.3 billion (Reuters, 2019, Reuters).
But cracks appeared quickly:
Deep discounts to win market share slashed margins.
High delivery costs across fragmented logistics networks ate into revenues.
Mismatch with local realities (cash-on-delivery risks, weak infrastructure) undermined profitability.
By 2023, Jumia’s valuation had collapsed to under $300 million (TechCrunch, 2023, TechCrunch).
👉 Lesson: Growth fueled by aggressive discounts is not growth, it’s a countdown. Unit economics must work from day one, even in hyper-growth mode.
Case 2: M-Pesa — Pricing for Mass Adoption + Trust
M-Pesa, the Kenyan mobile money service launched in 2007, is one of Africa’s most celebrated success stories.
Its model hinged on simple, transparent, affordable pricing:
Low transaction fees encouraged mass adoption.
Clear costs built trust: users always knew what they were paying.
Scale mattered: profitability grew with volume.
Today, M-Pesa serves over 50 million active customers across 7 countries (Vodafone Group, 2023, Vodafone).
The broader Africa mobile payments market was valued at $54 billion in 2024 and is projected to reach $1,066 billion by 2033 (CAGR 39.3%) (Market Data Forecast, 2025, MarketDataForecast).
👉 Lesson: Pricing aligned with customer ability and willingness to pay can unlock adoption at scale, provided operations support it.
Case 3: Shoprite — Localized Pricing + Operational Discipline
South African retail giant Shoprite shows how adapting pricing to local realities enables resilience across markets.
In Nigeria, Shoprite adjusted for currency volatility and import costs. In Zambia, it emphasized affordability while leveraging economies of scale. Across markets, supply chain efficiencies kept prices competitive. In 2025, Shoprite reported revenue of ZAR 252.7 billion (~USD 14.5 billion) with steady growth across its Africa operations (Reuters, 2025, Reuters).
👉 Lesson: Pricing isn’t copy-paste. Success comes from localizing pricing, embedding operational discipline, and adapting continuously.
Key Takeaways for SMEs & Investors
From these cases, here are practical principles:
Don’t buy growth with discounts.
Promotions can be useful, but not as a permanent crutch.Anchor pricing in local realities.
Customer ability to pay, infrastructure, and cost structures must shape the model.Embed cost forecasts early.
Currency risk, logistics, and returns must be factored in before scaling.Make pricing proactive, not reactive.
Continuous refinement beats crisis-driven adjustments.
My Perspective
In my consulting work with African SMEs and European organizations, I’ve seen pricing treated as a side detail. But when companies expand, the cracks show fast. Growth without pricing discipline is a countdown to collapse. The winners are those who treat pricing as a proactive strategy, not an afterthought.
Closing
As you plan your next steps, whether scaling an SME or entering new African markets, ask yourself:
Is my pricing aligned with the realities of this market?
Am I anticipating costs and challenges, or just reacting when they hit?
Am I building for sustainable profitability, or just chasing fast growth?
I’ve seen too many companies learn these lessons the hard way. With the right strategy, pricing can be the lever that turns opportunity into long-term success.
If you’d like to exchange perspectives or share your own experience, I’d welcome the conversation.