Hello Quartz Africa members,

Unstable shops, open markets, and retailers are examples of volatile systems that dominate the African retail market. Market sales account for 67% of total sales in Kenya, Nigeria, and South Africa according to a 2019 report by market research firm Euromonitor.

A number of startups in the B2B marketplace in Africa are focused on strengthening African markets by providing new and easier experiences for African retailers – enabling them to do more and create stronger businesses.

Many African families have food and other necessities in their local shops and department stores.

The figures vary from country to country: Small, regional, and commercial retailers account for 96% of trade in Ghana, 98% in Nigeria and Cameroon, and 70% in Kenya, according to the United Nations Economic Commission for Africa ( UNECA). ) report. South Africa is a leader in this regard as 60% of South Africans shop in supermarkets.

The IMF report stated that the ill-gotten gains include economic activities that work outside the regulatory and administrative system. of the management of the management of the management of the management of the management of the management of the management of the management of the management of the management of the management of the management of the management of the management of the management of the administration of management system management system management system management system management system management system management system management system management system management system management system management system management system management system management system management system management system management system management system management system management system management system management system management system management system management system management system management system management system management system management management system management system management system management system management system management system management system management system management system management system management system management system management system management system management system management system The movement of the movement of the world by the billions of screams out of the sharing of the possibilities … However, this also separates them from getting e access to the benefits and rights that properly registered businesses enjoy.

Trade instability in Africa means that retailers face many challenges even though they are widely trusted. A number of barriers make it difficult for unscrupulous retailers to grow their businesses on a regular basis, ranging from declining retailers to a lack of working capital and capital.

But, thanks to a new start-up class, unstable businesses are on the verge of finding much-needed support.

Cheat Papers

💡Luck: Unsustainable retailers are leading the retail market in Africa, but inconsistencies make it difficult for them to run and grow their businesses.

🤔Hards: Construction problems, unstable distribution methods, and limited access to credit and debt are just some of the factors that combine to create online barriers for unstable retailers, and to increase their value. Many unscrupulous traders in Africa are also being harassed by government officials.

🗺 Street maps: Startups need to create solutions that make the business easier and more efficient for unstable vendors, addressing needs including asset management, asset management, mobility, and access to credit.

💰Support: Founders, financiers, retailers, and government agencies all have a responsibility to empower informal traders to do more.

By numbers

$ 380 billion: Combined value for traditional, modern, and e-commerce in sub-Saharan Africa by 2021

67%: Component of all sales calculated by illegal means in Kenya, Nigeria, and South Africa in 2019

40-90%: A portion of all food sold from unstable destinations in sub-Saharan Africa — with the exception of South Africa, which has a large export base.

70%: Employment share in sub-Saharan Africa from volatile economies. In North Africa 62%

55%: GDP of sub-Saharan Africa from volatile economies

9 out of 10: Segment of the sub-Saharan African workers’ work in women and / or youth

Study Article

Startup: Market

Section: E-commerce

HQ: Nairobi, Kenya

Price: $ 625 million

Formerly known as SokoWatch, the B2B market start-up marketer in March 2022 closed Series B for $ 125 million at $ 625 million. It was the second largest non-fintech trip in Africa after Andela and the largest B2B-type business venture.

The startup helps informal retailers to sell their stores more easily, solving the problem of dealing with different retailers and retailers. Local retailers order sales via SMS or mobile app, and receive free on the same day at the retail store.

Wasoko also offers sellers of credit lines. It provides them with operating costs, which allows retailers to order and sell items before paying them. The platform also includes data-based information for vendors.

The launch has seen significant growth since its inception in 2014. Earlier this year, it was named the fastest growing company in Africa by the Financial Times with an annual increase of 346%.

Wasoko’s revenue rose from $ 0.3 million in 2017 to $ 27.4 million in 2020. The number of employees increased from 57 to 372 over the same period.

“We are not the company we had two years ago. Back then, we had to convince sellers [to work with us] but now the sellers are coming to us, “Wasoko’s Global Operational Excellence Director Fatma Nasujo told Quartz.

Borrowing has been a major factor in the company’s growth. In Kenya, for example, many grocery stores allow customers to buy food and other necessities on credit.

Between May 2020 and July 2021, 33% of households in Kenya purchased food on credit from retailers according to a report by Financial Sector Deepening (FSD) Kenya. When the epidemic reached its climax, between March and May 2020, the figure stood at 43% of households, indicating the need for unstable retailers.

These retailers often face the consequences of a high level of consumer debt, which makes it difficult to buy enough goods or grow their businesses. However, they have nothing to do but offer loans because customers sometimes have less or less cash.

Wasoko makes things easier for retailers because they can easily store their stores, save money on goods, and sell for a long time before paying. Fixed sales also give them the opportunity to earn extra money that helps them grow their businesses.

Wasoko is currently operational in Kenya, Tanzania, Uganda, Rwanda, Ivory Coast, and Senegal. With its recent funding, it is looking to integrate its presence in existing markets by expanding its reach to more cities and towns.

In conversation with

Fatma Nasujo

Fatma Nasujo is the Global Head of Operational Excellence at the Market.

💰 Regarding the provision of operating funds to informal traders:

The Buy Now Pay Later system allows retailers to have more stable shares and less worry about retailers. Instead, businesses are now asking this and those with BNPL are growing rapidly – their system size is twice as big as our customers alone.

🏍️ Leaving 3-wheeler wheels to be delivered to vehicles:

We started with a tuk tuk (three-wheeled) because of the narrow roads in some areas but found that the switching devices were difficult. We have been using a lot of 3-6 tons of vehicles. We moved to cars because of the amount of traffic, and it is cheap.

🤝 Working with third-party drivers to deliver goods:

Working with third-party drivers has allowed us to expand. We work with colleagues in six countries. In Kenya alone, We have 400 vehicles that ship 6,000 per day.

Logistics Marketing to see

Senegal’s first PAPS in January 2022 raised $ 4.5 million in pre-Series A to help address its entire Francophone Africa crisis. Its expertise allows businesses of all kinds to be able to effectively manage their needs, with functions including storage, international transportation, and delivery of final miles.

Digital trucking logistics operators in Kenya Amitruck raised $ 4 million in February 2022. The launch connects customers directly with licensed carriers who cut pregnant people.

In November 2020, Lori Systems received funding and support from Imperial, an African and European service provider linked to the integrated market and solutions, to expand its operations across Africa by closing the $ 20 million Series A in 2019..

More from Quartz Africa

😃 More than half of Jumia’s goods are now processed within 24 hours

🙌 One of Nigeria’s top sellers has bought its Ghanaian products

🤔 Work needs to be done on African e-commerce business

This member brief was edited by listening to East To London, a record by Buruklyn Boyz.

Enjoy the rest of your week!

-Martin Siele, a Quartz donor in Nairobi

One thing 🤑

In 2019, loans from Kenyan retailers became the largest component of loans followed by loans from family and friends and mobile banks, according to the Kenya Financial Sector Stability Report. The seller’s interest rate was 45.6% but the seller’s interest rate was 1.8%.



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