Connect with us

Business Home

Redshift – Connecting South African small retailers with shoppers during lockdown

Published

on

Mmabatho Mokiti, Founding Director at Redshift

Have you ever wondered why all technologies seem to launch in the more centralized urban areas particularly in Johannesburg? Why, although the township economy keeps thriving and the technological advancements seem to ignore this economy. These were the questions Mmabatho Mokiti, John McDonald and Douglas Hoseck who founded Redshift had.

“I woke up and found myself in a lockdown, amidst a pandemic with soldiers on the streets and worry about just getting basic groceries. I worried about my neighbors and how they would protect themselves. The entrepreneurs in my neighborhood, who would have to shut down for safety reasons even though they formed part of essential services. It seemed to me, that there was a unique dilemma we faced and this insight was the reason we built the Redshift Store Connector.” Says Mokiti

According to a recent report by the International Finance Corporation (IFC) which measures the size of South Africa’s small business sector, of South Africa’s estimated 5.78 million MSMEs (Micro, Small and Medium-sized Enterprises), only 14% are formalised. Of the 817 000 formal MSMEs, 686 000 are classified as small, very small and micro. In contrast, there exists over 2 million informal MSMEs and 2,89 million survivalist businesses. Most micro and very small businesses exist to create self-employment.

Retail accounts for the majority of MSMEs with most of them operating in domestic trade (wholesale and retail). The current lockdown has seen a boom for large food retailers and established chain stores, which have benefited from panic buying. But presents a serious blow to the prospects of small independent retailers in township environments.

John McDonald, Founding Director at Redshift

“We decided to do something to help South Africa during her time of need. Given Redshift is an agile, easy to use website builder with phenomenal turnaround times, we built our Local Store Connector in a matter of hours with a solution oriented mentality in mind. Here’s the perfect tool to help connect consumers to small business owners while solving several problems at once. Social distancing, food security, safety and convenience are some of the immediate benefits that a customer will gain from using the Local Store Connector. The benefits for small business owners include getting a free online presence to help make an already under-pressure customer base aware that they are open for trade during lockdown and facilitating customer orders,” says McDonald.

While the lockdown regulations allow food retailers to continue trading, they must formally apply for a license to do so. There is lack of clarity as to whether independent retailers such as spaza shops are allowed to trade from their premises, and social distancing protocols have discouraged shoppers from utilising their services. This has resulted in most shoppers flocking to large chain stores as evidenced by the long lines seen at shopping malls and large outlets.

Also Read: These two Africans are helping businesses and individuals spend less time doing expenses with Xpensi

In support of small businesses in South Africa, Redshift supported by FinMark Trust will focus on using digital means to connect township food retailers to their customer base. The Redshift platform provides small businesses the opportunity to list themselves and accept orders from shoppers. These orders can then be pre-packed and readied for collection by the customer or for home delivery. As part of the on-boarding process, the platform facilitates MSME’s formally registering as essential businesses, which then allows them to continue to trade during the lockdown.

Subsequent phases will include introduction of digital payments and digital generation of management accounts that will assist in securing funding for working capital and expansion.

Redshift’s Online Store Connector functions in two ways:

  1. It allows retail MSMEs to register their stores in order to access the local marketat no cost; and
  2. It allows customers to shop from their local stores by simply submitting their grocery list and collecting their them after receiving confirmation, again at no cost. Thus, avoiding long queuesand the risk of getting infected and spreading the virus, while enabling food security for households.

The Local Shop Connector

Visit Redshift

Press Release

BII and African Guarantee Fund sign $75 million to fund African SMEs

Published

on

British International Investment (BII), the UK’s development finance institution and impact investor, and African Guarantee Fund (AGF), a leading Pan African guarantee provider, have today announced their partnership of a $75 million re-guarantee agreement for Small and Medium Enterprises (SMEs) across Africa.

Through this facility, AGF and BII will provide credit guarantees to partner financial institutions for up to 75 per cent of the risk on SME loans, thereby increasing access to credit and reducing collateral requirements for these SMEs. As a result, the eight-year partnership is expected to facilitate up to $150 million in loans to 17,300 SMEs through partner financial institutions. This partnership will also encourage lending to SMEs that are women-owned or led as well as SMEs that are climate-focused.

SMEs in Africa continue to face significant challenges in accessing credit. Financial institutions are often constrained by regulatory requirements, limited appetite for a segment that is perceived to be higher risk, a lack of adequate collateral available from SMEs, knowledge gaps by the lenders and skill gaps demonstrated by SME borrowers.

Download BAO E-MAGAZINE

Risk-sharing facilities are a key tool to support knowledge gaps by the lenders and in broadening their SME lending while mitigating risk and allowing them to build capabilities and track record in serving this market segment. As such, at least half of the overall facility will specifically target SMEs in the most fragile African economies to support promising businesses that can contribute to productive economic development over the long term.

UK Foreign Secretary, James Cleverly said: “British International Investment is already a force for good in Kenya, supporting jobs and livelihoods in Africa. This investment shows that when we go together, we can go far.”

Constant N’zi, Deputy Group Chief Executive Officer and Group Chief Risk Officer, African Guarantee Fund said, “Our partnership with British International Investment marks our first engagement with a UK Development Finance Institution and is the beginning of a journey that will positively impact African SMEs. Through this re-guarantee, our capacity to support lending institutions has been increased and we are certain of increased economic growth across the forty African countries wherein our guarantee products are utilized.”

Jo Fry, Investment Director & Head of Intermediated Credit, British International Investment (BII) added: “We are delighted to partner with African Guarantee Fund, a deeply impact-focused African institution, on this critical mission. This investment will increase access to finance for SMEs across the African continent, with a focus on those in the most challenging contexts. The partnership, which will also target funding at climate-focused businesses as well as SMEs owned and led by women, will contribute toward increasing inclusive and sustainable development for Africa. The programme represents BII’s commitment to working with best-in-class local institutions who are deeply embedded in the countries and communities that they serve.”

The joint facility contributes to the United Nations Sustainable Development Goal 8 on promoting inclusive and sustainable economic growth. The investment also qualifies under the 2X Challenge, an initiative by the development finance institutions (DFIs) of the G7 to mobilise capital to support increased economic empowerment for women in emerging economies.

Continue Reading

Business Home

Shelter Afrique target East African bourses, pension funds in USD500M housing bond

Published

on

Shelter Afrique’s Ag. Managing Director Kingsley Muwowo (Image: Supplied)

Buoyed by the successful local currency bond debut in Nigeria early this year, pan- African housing development financier Shelter Afrique is planning to tap into the East Africa capital markets and pension funds to finance affordable housing projects in the region.

Speaking in Nairobi, Shelter Afrique’s Ag. Managing Director Kingsley Muwowo disclosed that the Company was considering issuing local currency Medium Term Notes in Kenya, Uganda, Tanzania, and Rwanda.

“Already, we have opened negotiations with Kenya’s Capital Market Authority on the possibility of Shelter Afrique issuing another housing bond to support local housing projects and we plan to do the same with capital market authorities in Rwanda, Uganda and Tanzania. We want to approach it as an East Africa issue- meaning we’ll issue Kenya Shilling bond, Uganda and Tanzania shillings bonds, and Rwandese Franc bond, subject to availability of bankable projects in each of the markets,” Mr. Muwowo explained.

Download BAO E-MAGAZINE

Mr. Muwowo noted that such a strategy would make it easier for pension funds such as Kenya’s National Social Security Fund, Uganda National Social Security Fund, Rwanda Social Security Board, and Public Service Pensions Fund of Tanzania, to invest in housing projects in the region and earn decent returns.

“Our experience with the Nigerian bond debut is that pension funds present a viable option to tap funds for affordable housing projects. We equally believe they have the capacity to provide long term funding for such projects,” Mr. Muwowo said.

Shelter Afrique has had ten successful local currency bond issues in Kenya dating back to 2000s, which Mr. Muwowo says, have been successfully retired – demonstrating the Company’s strong investment rating in terms of local currency issues.

Beyond cities

Mr. Muwowo said the Company was keen on extending housing projects financing beyond major cities and into rural areas, adding that every part of the countries should be able to benefit from housing projects funding.

“At the moment, we have housing projects in cities like Nairobi, Kisumu and Mombasa – in the case of Kenya, or Lagos and Abuja in the case of Nigeria. Our aim is to roll out housing projects all over the countries in member States. In Kenya, for instance, we are already in talks with the National Housing Corporation to implement this,” Mr. Muwowo said.

The Company has several projects in Kenya including Everest Park Apartments, Richland Point Apartment, Karibu Homes, Pine City and Sigona Valley in Nairobi; Lake Breeze Apartments and Translakes Apartments in Kisumu; and Eden Beach Apartments and KMA Housing Apartments in Mombasa.

Continue Reading

Press Release

Lipa Later Group Acquires Sky.Garden, One Of East Africa’s Leading E-Commerce Platforms

Published

on

Lipa Later Group, has acquired Sky.Garden in a move that re-energizes our commitment to bridging the gap between the merchant and a customer with more empowerment between both parties, merchant and customer, stellar service, stellar tech, and revamped strategies that promise to disrupt the industry.

This acquisition of Sky.Garden by Lipa Later marks an important milestone in the group’s goal to offer innovative solutions that meet the needs of businesses and consumers. This move will enable Lipa Later to expand our customer base and solidify our presence in the market.

The e-commerce industry has exploded in recent years, providing businesses with the opportunity to reach customers quickly, cheaply, and more often. This is the driving force behind the decision to invest in Sky.Garden.

Download BAO E-MAGAZINE

Speaking during the onboarding ceremony, Lipa Later CEO Eric Muli reiterated that the acquisition is timely as fintech continues to build an end-to-end avenue that connects merchants to customers and vice versa.

“Guided by our objective to empower African businesses and consumers to do more by enabling e-commerce, financial inclusion and shopping all on one centralized and fully integrated platform, our plan has always been to venture into e-commerce with unique value propositions for our consumers. Sky.Garden has done an incredible job and checks all those boxes. Lipa Later is no stranger to the e-commerce industry, having already established a strong presence in the online payment and finance sectors. This acquisition has greatly accelerated our plans of redefining the shopping experience for consumers,” said Lipa Later CEO Eric Muli.

Sky.Garden, which has raised north of $6,000,000 prior to this acquisition, will now be fully owned by Lipa Later Group and will continue to operate using its name.

With the acquisition of Sky.Garden, Lipa Later is now in a position to provide a comprehensive e-commerce solution to consumers, and with Sky.Garden’s established infrastructure and market presence, consumers will be able to purchase items from Sky Garden using any preferred payment method including Lipa Later’s buy now, pay later model which provides for a payment plan that is flexible and affordable through monthly instalments.

Last month, we saw no other option than to file for insolvency,” Martin Majlund, founder of Sky.Garden, reiterated. “Today, I’m happy to see that Sky Garden will live on with new owners and new management. We built a great product over time, and I believe Lipa Later has the potential to take Sky Garden to the next level. Through this acquisition, the vision of Sky Garden will continue to live on while retaining jobs and businesses on our platform.”

This acquisition is a key step forward in our goal of becoming a leader in the e-commerce space. The acquisition of Sky.Garden by Lipa Later presents a great opportunity for both companies to benefit from each other’s strengths and further the growth of the e-commerce industry. With the combination of our expertise in financial services and Sky.Garden’s innovative e-commerce platform, the potential for growth is tremendous, and the impact this could have on the industry could be immense. Expansion plans are in place to see Sky.Garden integrated across other Lipa Later countries of operation which include Rwanda, Uganda and Nigeria.

Continue Reading

Ads

Most Viewed