We know that funds who are not-Africa or emerging market-focused have become less enthused about investing on the continent. At the same time, we have seen deterioration in the food, fuel, and fiscal systems in African countries. Even as software eats the world, the world needs to eat. All this is leading to a slowdown in the geometric growth that African VC has seen in the past couple of years.
New retail models are seeking to move the small retailer (duka, spaza, kiosk, and mom-and-pop shop), from a world of opaque supply scarcity to one of predictable supply abundance. A tech-enabled solution stack has emerged across the retail value chain, spanning solutions which are addressing inefficient sourcing and distribution systems, payments, inventory management, discovery functions, and a whole lot more.
The contours of African consumer purchasing power and the opportunities for the tech industry.
In our first Sufficient Balance series, we dedicated a chapter to a concept we called “Physical Ubiquity”, a state where physical distribution becomes so accessible that it creates new markets: An ecosystem that enjoys physical ubiquity is a hyper-market creator. It asks everyone the question “if you could deliver anything to anyone, what would you sell?” Importantly, this is a question that can be answered by every restaurateur, “mom-and-pop” shop owner, and smallholder farmer in the country in contrast to the question digital ubiquity offers, which is: “if you could deliver any software or content to anyone, what would you build?”
In this article, we explore what's special about NALA and why we invested
DFS Lab, a VC investor specializing in digital commerce in Africa, recognized the lack of data on the potential for MSME digitization in the region. To address this, they conducted a survey of over 2,500 micro, small, and medium enterprises (MSMEs) in Nigeria and Kenya, creating the first dataset of its kind. The survey aimed to inform founders, investors, donors, and others in the ecosystem about the digital adoption and readiness of MSMEs in the retail value chain.
The post discusses Indonesia's Go-Jek and its significant impact on bringing fintech to the last mile, benefiting millions of people. Despite its vast influence, many seem to be overlooking its contributions. Go-Jek, originally a ride-hailing platform, has evolved into a super app offering a range of services, including financial services like payments, insurance, and lending. By leveraging its extensive network of drivers and service providers, Go-Jek is reaching underserved communities and empowering them with convenient and accessible financial solutions. The post highlights the importance of recognizing Go-Jek's transformative role in expanding financial inclusion in Indonesia and beyond.