This represents approximately 10% of Section 1 of the module. The complete module has 6 major sections.
Section 1.1: Market Size Reality Check
Question 1: Stated Market Size
Document the official market size estimate:
Market: ___________________
Stated Size: $__________________
Source: ___________________
Year: ___________________
Geography: ___________________
Blindspot Alert: The Aggregation Assumption
Most market size estimates for African markets suffer from systematic overstatement:
- Formal economy only: Estimates typically capture only 40-60% of real economic activity, missing informal markets entirely
- Outdated data: "Recent" estimates are often 2-5 years old in fast-changing markets
- Import substitution blindness: Estimates don't account for import-dependent demand that won't shift to local production easily
- Cross-border informal trade: Significant volumes move through informal channels invisible to official statistics
Why investors fall for this: Large stated market sizes are emotionally appealing and seem to justify investment scale. Investors assume "even if we capture just 1%..." without testing if that 1% is accessible.
Reality Check Questions
For the stated market size, systematically probe:
- What percentage of this market is informal/cash-based and therefore not accessible through formal channels?
- How much of stated demand is currently met by imports? What's the realistic substitution rate?
- What percentage of the "market" is actually affordable to your target customers at viable price points?
- Are there subsidies or price controls that distort apparent demand?
Complete Analysis Framework
Full module includes: Adjustment methodology, affordability calculator, regional variance matrix, 15+ additional reality-check questions, and scoring system.
Section 1.2: Supply vs. Demand Reality
Question 2: Demand Composition
Break down WHO the stated demand comes from:
Consumer segment 1: _____% at $_____/unit
Consumer segment 2: _____% at $_____/unit
Consumer segment 3: _____% at $_____/unit
B2B/institutional: _____% at $_____/unit
Export potential: _____% at $_____/unit
Blindspot Alert: The Affordability Gap
Market size estimates often include demand at price points your product cannot hit:
- Example: "Nigeria has 200M people" does not mean 200M potential customers for your product priced at $50/unit
- Reality: Perhaps 5-15M have purchasing power for that price point, and only 30% of those are reachable through your distribution model
- Your accessible market: 1.5-4.5M, not 200M
Complete Demand Analysis
Full module includes: Purchasing power segmentation tool, distribution reach overlay, seasonal demand patterns, competitive demand capture analysis.