Introduction

When international FMCG brands plan their African market entry, the presentation slides usually feature gleaming supermarkets, modern retail shelves, and organised supply chains. The strategy is built around securing listings with major retail chains and appointing distributors who can service them.

But there is a fundamental problem with this approach. In many African markets, the modern retail channel that dominates the strategy is actually the minority of the market.

The data is unambiguous. According to GeoPoll, informal trade accounts for approximately 80% of FMCG retail spend in Africa . This is not a fringe statistic or a legacy figure from a decade ago. Even Kenya, often recognised for its relatively advanced digital and retail infrastructure, still routes 58.2% of its retail through traditional trade . In markets like Uganda, Tanzania, and Nigeria, over 70% of daily consumption runs through informal networks .

If your African distribution strategy treats informal trade as an afterthought, you are not competing for the majority of the market. You are competing for a minority slice of it.

What "Informal Trade" Actually Means

The term "informal" can be misleading. It does not mean disorganised or insignificant. It refers to a highly structured, relationship-driven ecosystem of small-scale retailers: kiosks, dukas, spaza shops, open-air market stalls, and street vendors.

These outlets are not a temporary phenomenon waiting to be replaced by supermarkets. GeoPoll's 2026 research confirms that informal retail "isn't going anywhere." In fresh and chilled foods, marketplaces and supermarkets are running neck and neck at 32% each, meaning formal retail has not managed to pull share away from informal channels in these categories .

The implication for manufacturers is clear: a supermarket-only distribution strategy leaves substantial volume on the table. Fresh and staple categories, in particular, need a genuine omnichannel plan that treats informal retail as a primary channel, not an afterthought .

The Distributor Question: Can They Reach the Kiosks?

This is where distributor selection becomes critical and where most manufacturers get it wrong.

A distributor that excels in modern retail (managing supermarket listings, promotional calendars, and planogram compliance) may have no capability in traditional trade. The skills are different. The relationships are different. The logistics are different.

When vetting a distributor for FMCG in Africa, you must ask specifically:

• What percentage of your current sales flow through informal versus formal channels?

• How many sub-distributors or wholesalers do you work with who service kiosks and open markets?

• Can you map the sub-distribution layers wholesalers, semi-wholesalers, and direct-to-retail and explain the margins and credit terms at each level?

• Do you have field sales staff whose job is to visit informal outlets, or do you only service formal retail accounts?

A distributor who cannot answer these questions with specifics is not equipped for the reality of African FMCG distribution. They are a modern-trade specialist, and your strategy will miss 80% of the market.

The Channel Strategy That Works

The most effective FMCG strategies in Africa do not choose between formal and informal. They build for both.

This means:

1. Segment your distributor network by channel. Some partners may be stronger in modern trade; others may have deep informal reach. Do not assume one distributor can do both well.

2. Invest in field sales visibility. If you cannot see what is happening at the kiosk level stock availability, pricing compliance, competitor activity you are managing a black box. Deploy systems that track field visits and outlet-level data.

3. Adapt pack sizes and price points. The informal shopper often buys in smaller quantities. Your product architecture must reflect this reality, not the bulk-buy habits of supermarket shoppers.

The P23 Africa Perspective

At P23 Africa, we help FMCG manufacturers and distributors understand the real channel landscape before they commit. We map the sub-distribution layers, vet distributors against their actual informal reach, and deploy tracking systems that give you visibility into what is happening at the outlet level, not just the warehouse.

If your African FMCG strategy is built on supermarket listings alone, you are leaving the majority of the market to your competitors.

Book a Discovery Call to discuss how we can help you build a distribution strategy that reaches the informal majority.

• External Link: GeoPoll Informal Trade Measurement to support the 80% statistic.

• Internal Link: [Contact Page] to book a discovery call.