The upcoming population census in Rwanda is an interesting opportunity for both private and public sector stakeholders to gain more insight into the demographics of Rwanda. I am sure marketing managers, planners, business executives, foreign investors and a host of other private sector stakeholders are holding their breath waiting for the latest information about this budding population.

And why would you not want to know? Rwanda currently is one of the best performers economically not only in East Africa, but in the world. Its economic growth rate and business environment have made cemented its position as one of the top places to do business in. From her governance, bureaucracy and efficiency, we are hearing many positives about the Rwandan economy.

However, like most emerging markets, it is very important that you approach this market with special care and consideration. In as much as the economy is doing well, it needs to be critically examined in order to avoid a gold-rush scenario that characterized early America. In this respect, I propose to you that in order to make the most out of this market, it is best to approach it from the “Bottom of the Pyramid”.

For marketing veterans, you will understand that this marketing phrase has been associated mostly with Asian markets. The grave truth is that the world in general experiences very imbalanced earning patterns. USA in particular has experienced a sharp increase in its earning gap between the very poor and the very rich. Like most African countries, Rwanda too falls in the category where the low-income earners largely outnumber the tycoons. Thankfully, according to the EICV3 report, poverty is down 12% and consumption has steadily risen among the lower income group. According to the same report, inequality has dropped significantly within the last five years too. All the same, this group still forms a significant segment of the community.

The temptation for a new investor, particularly those offering “blue chip” goods and services is to target the upper part of the population. This seems like a particularly great strategy, especially in the short run. The upper part of the pyramid is educated, has bigger spending power, has a bigger taste for foreign goods and as a result may be more accepting of new products. However, if you are venturing into a competitive market, you are definitely going to get resistance from competing brands. Even if you are the first in the market, the size of the market segment and potential entrance of competition will have long-term effects on your bottom line.

It is important therefore to consider the lower echelons of the demographic pyramid as a source of steady revenue. Specific consumption data is not out yet, but my bet is that there has been a significant increase in spending power of this market segment. In the Rwanda case, there are specific advantages to targeting this group for your long-term growth.

First and foremost, the government of Rwanda is genuinely interested in uplifting the standard of living of her people. The government is very strategic in its development plans and targets. For those businesses offering goods and services that are in line with their strategic plans, this is a great opportunity to assist in this noble effort. Services such as education, banking, affordable housing solutions, green energy and other socially beneficial services are bound to have the government’s support. Packaging these services to assist the poor and vulnerable of the community is the right way to go. Create quality, affordable, and valuable packages. Be bold and go outside the “white collar” regime and you will be sure to reap the profits.

The Patrimonio Hoy Initiative in Mexico where community involvement for low income earners by CEMEX shows that companies can indeed benefit from helping the community. Another famous example is Hindustan Lever Ltd in India whose innovation in health initiatives helped it gain a firm footing in both salt and soap market segments. Closer to home, Equity in neighboring Kenya has recorded exponential growth because it targeted affordable loans for low income earners.

Secondly, Rwanda is a growing economy. This means that the population’s spending power is improving impressively. You want to be the brand that started out and established yourself during the initial stages of growth. For services and goods that experience network effects, this is particularly a delightful idea. Brand loyalty is invaluable for such companies. Getting the head start by investing in the right market segment is particularly important. Cultivate the right image early, and long-term benefits are sure to follow.

Third is the issue of distribution and marketing channels. Marketing to the bottom of the pyramid is challenged by accessibility and disorganized channels of both communication and distribution. Rwanda, however, presents a unique solution. The government has strived to organize the whole country into planned settlements known as Umudugudu. In the past 5 years, it has been noted that now 39% of the population now live in these planned settlements, as opposed to 18% previously. This is more than 100% increase! These efforts continue to be pursued in earnest as the country gets re-organized. These settlements present organized channels of both distribution and marketing. In addition, Rwanda’s internationally acclaimed Umuganda presents a unique platform for CSR initiatives where beneficial information can be passed on.

I must admit, marketing to the lower market segment is not easy. They have their challenges in terms of advertisement channels, spending power, credit worthiness, distribution channels and even embracing of new ideas. However, in the unique case of Rwanda, there is immense potential as this market segment grows in spending power. At this point, let me issue a caveat. Rwanda is a very sensitive society. In as much as it is unique, it is also a very ethical and responsible society. Please ensure that your marketing techniques do not take advantage of this category. It will ruin you in the long run. Ensure that you are within the confines of legal and ethical boundaries and are driven by a desire to truly assist the community. Look at the bottom line from a long-term rather than a short-term perspective.