The African continent proposes a big and defined market for toys, with the plan to have reached $1.3 billion by 2027 (Statista, 2023) as the market size. Despite the possibility of success, Nigeria still has a series of problems in setting up a local toy industry. This article succinctly explains the challenges and solutions in order to acquire the benefit in the toy business.
Top challenges of local toy production in Nigeria:
-Expensive raw materials:
The World Bank, 2021, says that the raw materials imported are not affordable. Which makes the production cost increase and affects the competition in the market.
-Lack of basic facilities:
According to the African Development Bank in 2020, the unstable electricity and bad road network of transportation in Nigeria affect the production process and increase operational costs.
-Difficulty in getting finance:
The struggle of small and medium-sized toy business owners to secure financing for investment and capital affects growth and production, as highlighted by the International Finance Corporation, 2019.
-Unsafe property:
Inadequate intellectual property protection hinders investment and innovation in the local toy industry, as stated by the World Intellectual Property Organisation 2020.
-Foreign-made toys are more affordable:
Because foreign-made toys are less expensive, locally created toys are not desired. Which are sold at a lower price because of the subsidies, according to the UN Conference on Trade and Development, 2022.
Ways of avoiding challenges and getting opportunities:
Government support:
The government should put in place policies like loan accessibility, tax incentives, and supporting research and development, which can boost the local toy industry.
Partnerships and joint business:
Relationships between local and foreign manufacturers facilitate the exchange of knowledge and resources, which enhances competitiveness.
Investment in Basic Facilities:
The investment of public and private sectors in infrastructural development helps settle the challenges of logistics and alleviate operational efficiency.
Focus on new ideas and quality:
The production of high-quality materials and culturally relevant toys encourages consumer preference and differentiation.
Building a strong brand identity:
To experience market reach and get consumer engagement, businesses need to invest in branding and digital marketing.
Promoting trade within African communities:
To foster market enlargement for toys produced locally, there’s a need to strengthen the agreement of regional trade and reduce trade difficulties.
Impact of local toy production:
– Increase in job creation and growth in the country’s economy:
A local toy industry that’s growing helps to generate employment for women and youth in particular, allowing economic prosperity, as researched by the United Nations Development Programme, 2021.
Local products gain visibility:
The production of local toys reduces the preference for imported toys, empowering a stable economy and flexibility.
Cultural identity promotion:
Toys produced locally in Africa help to celebrate the culture and value, giving the children a sense of identity and pride, as noted by the African Union Commission, 2021.
Child development support:
Toys that are relevant and accessible help the social, mental, and emotional development of children, encouraging a future to behold for African youth, says the United Nations Educational, Scientific, and Cultural Organisation, 2019.
The future of local toy production is possible in Nigeria despite the fearful challenges attached. With the implementation of partnerships among the stakeholders and targeted interventions, Nigeria can become the leading manufacturer of locally-made toys in Africa. This will help with economic growth, excess opportunities for youth development, and cultural enrichment. Through intentional efforts and planned initiatives, the hope of having a local toy industry can come to pass, fulfilling the dream of children across Africa.
Mrs Omotola Lawson is a Toy Distribution Entrepreneur and Government-certified Instructor in Nigeria.
