Segmentation that actually exists

I would hazard that Capitec's funeral insurance prices reflect actual market capacity, not idealised, Western 'emerging markets' insurance models. Similarly, digital products gaining traction across Africa and India are those aligned with microtransaction behaviours and genuine income distribution patterns.

What's particularly noteworthy is how often well-funded ventures with imported business models struggle to gain traction despite seemingly sound market logic. Meanwhile, less heralded local innovations - often with modest funding - achieve remarkable adoption by working within, rather than attempting to transform, existing economic constraints.

23:T4ed,

This tension between market reality and aspirational vision creates a perpetual challenge for those committed to building transformative ventures while remaining clear-eyed about actual market conditions—requiring a delicate balance between ambition and pragmatism that many 'Africa rising' and 'Africa now' narratives fail to acknowledge.

The disparity between conventional market segmentation approaches and ground-level economic realities might explain at least some of the bewilderment experienced by investors and entrepreneurs when apparently rock-solid theses and business models that work elsewhere face adoption challenges in African contexts.

As African tech ecosystems continue to evolve, a valuable contribution might be the emergence of more realistic frameworks for understanding market dynamics - ones that acknowledge the actual stratification patterns, mobility barriers, and consumer behaviours that define our economies rather than the ones we might wish existed.

In this light, Capitec’s insurance pricing strategy isn’t just a business decision - it’s a case study in the kind of market literacy that too few entrepreneurs and investors prioritise.

24:T4a3,This tension betw

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Watch VideoWhy Capitec’s funeral cover strategy is beating legacy insurers - Tech Tides Africa

Why Capitec’s funeral cover strategy is beating legacy insurers - Tech Tides Africa