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Adapting to Thrive: Small-Scale East African Retailers

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1 year ago

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Consumer goods

Smollan representing some of the world’s most loved FMCG and commerce brands, gives a glimpse into the dynamics of this growing sector and the challenges and opportunities that arise

JOHANNESBURG, South Africa, July 25, 2023/APO Group/ — 

Millions of small, independent shops in East Africa will need to look at diversifying, digitizing, and even partnering for growth in response to a challenging and rapidly evolving landscape. These cornerstones of neighbourhoods undeniably form an integral part of a countries socioeconomic system.

Smollan representing some of the world’s most loved FMCG and commerce brands, gives a glimpse into the dynamics of this growing sector and the challenges and opportunities that arise. Seen within the context of small-scale retail tied to history, traditions, and trading preferences of consumers in a particular region.

As defined by EuroMonitor International, spaces for trading can range from as little as 1sqm up to 30sqm and due to their small footprint, traders are located closer to consumers, along transport hubs and routes, or within local communities. Proximity also extends to knowing and stocking customer’s preferred brands and products and offering credit to loyal customers.

Empowering small-scale retailers though digital and financial inclusion is definitely the way forward

While this sector can be difficult to quantify as data is generally thin across all the regions that make up the East African retail community, in a recent United Nations Economic Commission for Africa – we see that small and local retail transactions account for 70% in Kenya alone. That said, these businesses face numerous challenges despite being relied on by the vast majority of the population. These include limited access to financial tools; the lack of ability to manage stock and inventory; adoption of technology; vulnerability to economic shock; competition from larger players, and as East Africa evolves, the unbundling of regulatory barriers. Indeed, they may be the dominant players in the market, but disjointed structures can make it difficult for them to effectively run and scale their businesses.

Despite this the potential is there as greater innovation and investment becomes the catalyst for change. Warren Brett Cluster Executive, SEA Region, Smollan Tanzania said, “Empowering small-scale retailers though digital and financial inclusion is definitely the way forward. In Kenya we’ve done this successfully with Unilever and Mastercard under the ‘Jaza Duka Program’ equipping small retailers to be able to accept electronic payments and access financial services. So too in Tanzania we are looking at how we can create a tech solution to support secondary sales from the distribution footprint. It’s all about putting the power in the hands of the ‘duka’ owner in this case and supporting consumer needs through consistent availability.”

According to business news outlet Quartz Africa, the roadmap for change for small-scale retailers to get much needed support is to formulate solutions that makes business easier and more efficient for them, by addressing the need for inventory management, logistics, mobility, and access to credit to name but a few. One example cited, seen as a significant game changer in the region is Wasoko, currently operating in Kenya, Tanzania, Uganda, Rwanda, Ivory Coast and Senegal. A start-up that supports and enables informal and small-scale retailers to conveniently stock their shops, eliminating the hassle of dealing with different suppliers and distributors. They also offer customized lines of credit to provide retailers with working capital and, data-based insights for further analysis.

So too, the East Africa Business Week recently reported that The East African Business Council (EABC) and the International Trade Centre (ITC) launched an online platform designed to boost the competitive edge of the region’s small businesses. Providing them with an avenue to support their recovery, build resilience and drive growth through digital technology. Likewise in the banking and financial services sector, Hilbret Bank launched a digital payments platform that allows Ethiopian small businesses and retailers to accept international card payments for online purchases.

“The opportunities are there – through collaborative networks, government support programs and the growing demand for locally made products. It’s a matter of closing off the eco-system to make it easier for retail to be serviced by brand owners, and the technology to enable their businesses,” said Brett.

Distributed by APO Group on behalf of Smollan

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Ministers among hundreds of energy-sector leaders to attend AOW event

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October 4, 2024

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Sinclair

The event kicks off with an invitation-only ministerial symposium focused on the theme of “Fostering innovation, attracting investment, and promoting sustainable growth in the oil, gas, and energy sectors”

CAPE TOWN, South Africa, October 4, 2024/APO Group/ — 

AOW: Investing in African Energy (https://AOWEnergy.com) – Africa’s leading oil, gas and energy event – has confirmed attendance for more than 80 ministers and senior officials, representing African governments, energy departments and regulators at next month’s event.

These influential stakeholders will be among the more than 1 600 senior delegates and industry leaders who will be attending the event to develop policy, share discoveries, secure investment, and shape Africa’s energy future.

The event kicks off with an invitation-only ministerial symposium focused on the theme of “Fostering innovation, attracting investment, and promoting sustainable growth in the oil, gas, and energy sectors.”

Given the recent major oil-and-gas discoveries across Africa, the energy transition and major geopolitical events, it is clear that the energy sector needs positive intervention

Among the officials and government ministers attending will be energy leaders from South Africa, Nigeria, Namibia, Cote d’Ivoire, Mozambique, DRC, Ghana, Kenya, Madagascar, Eswatini, Uganda, CAR, Guinea Conakry, Guinea Bissau, Ethiopia, The Gambia, Gabon, Malawi, Morocco, Zanzibar, Liberia, Senegal, Congo Brazzaville and Sierra Leone.

In addition, the event will feature high-level delegations from numerous national oil companies, as well as multilateral bodies including the African Union, (AU), African Energy Commission (AFREC), African Petroleum Producers’ Organization (APPO) and the Southern African Power Pool (SAPP).

AOW will see these energy leaders networking with C-suite executives and decision-makers from more than 760 top energy companies at daily networking events, to discuss insights, forge new relationships, and negotiate major energy deals.

“We are so excited to see the calibre of delegates at this year’s AOW event,” says Chief Executive Officer of Sankofa Events, Paul Sinclair. “Given the recent major oil-and-gas discoveries across Africa, the energy transition and major geopolitical events, it is clear that the energy sector needs positive intervention. The high-powered attendance proves AOW is a key platform to enable this intervention.”

Key themes to be discussed at this year’s AOW will be sustainable upstream development; expanding gas value chains; renewables and new energies; adoption of best-in-class technologies; and access to finance.

AOW: Investing in African Energy will culminate in a special anniversary party at Groot Constantia Vineyard to celebrate 30 years of the AOW event.

Distributed by APO Group on behalf of AOW: Investing in African Energy.

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Afreximbank approves US$20.8 million for Starlink Global’s cashew factory project in Lagos

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1 day ago

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October 4, 2024

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PAPSS

The facility is expected to promote value addition which will guarantee increased earnings to the company while also fostering the creation of about 400 new jobs

CAIRO, Egypt, October 4, 2024/APO Group/ — 

African Export-Import Bank (Afreximbank) (www.Afreximbank.com) has approved a US$20.8 million financing facility for Nigeria-based Starlink Global & Ideal Limited to enable the company construct and operate a 30,000-metric tonne per annum cashew processing factory in Lagos.

We are delighted at this partnership which promises to deliver significant impact on employment in Nigeria

According to the facility agreement signed in on July 22, 2024, Afreximbank will provide the funds in two tranches with the first tranche of US$7.48M going toward capital expenditure for the construction of the factory and the second, totalling US$13.25M to be deployed as working capital for the operations of the factory.

The facility is expected to promote value addition which will guarantee increased earnings to the company while also fostering the creation of about 400 new jobs once the factory becomes operational. It is also expected to support about 40 small and medium-sized enterprises.

Commenting on the transaction, Mrs. Kanayo Awani, Executive Vice President, Intra Africa Trade and Export Development, Afreximbank, said that by supporting Starlink Global to establish a modern processing facility, Afreximbank is making it possible for Africa to add value to its agro-commodities, thereby facilitating exports and subsequent inflow of much-needed foreign exchange into the continent.

“We are delighted at this partnership which promises to deliver significant impact on employment in Nigeria. It will contribute to value creation and to the development of the local community while also improving the lots of smallholder farmers and small business suppliers that will work with Starlink across the value chain,” Mrs. Awani added.

Distributed by APO Group on behalf of Afreximbank.

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Sonangol to Lead Decarbonized Oil & Gas (O&G) Development, Says Angolan National Oil Company (NOC) Head

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October 4, 2024

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Sonangol

Participating in an on-stage interview at Angola Oil & Gas 2024, Sonangol CEO Sebastião Gaspar Martins emphasized that oil and gas remains a core focus for the national oil company

LUANDA, Angola, October 3, 2024/APO Group/ — 

Angola’s national oil company Sonangol reiterated its commitment to driving sustainable hydrocarbon development during the Angola Oil & Gas (AOG) conference this week. Speaking during an “In-Conversation with” session, Sonangol CEO Sebastião Gaspar Martins stated that the company will not abandon oil and gas, but rather advance decarbonized oil and gas development.

We are looking at opportunities in the gas sector and have identified the right partner to develop non-associated gas

By investing in upstream oil and gas production while prioritizing low-carbon projects, Sonangol aims to boost national crude output, while diversifying and decarbonizing the industry. The NOC is focusing efforts on non-associated gas development, as well as alternative energy sources such as solar.

“We are looking at opportunities in the gas sector and have identified the right partner to develop non-associated gas. Gas produced from Angola LNG will be used for the production of fertilizer and we are evaluating the utilization of gas in the south of the country, linking gas with steel industries. We also have a blue carbon project, linked to the reduction of carbon through the plantation of mangroves. We have one area in Luanda and have identified four additional areas for this,” stated Gaspar Martins.

Sonangol has undergone transformation in recent years: following the creation of the National Oil, Gas & Biofuels Agency (ANPG) in 2019, Sonangol transferred its role as national concessionaire and regulator. This transformation has aimed to make Sonangol more competitive and strengthen its capacity as an upstream operator. Concurrently, the government is partially privatizing the NOC, with privatization set to be complete in 2026. This process will enhance financial capacity, allowing Sonangol to drive new upstream projects forward.

“The transformation of Sonangol started several years ago, when we passed the regulatory, concessionaire role to the ANPG. At the time, we transferred almost 600 employees to the ANPG. After that, Sonangol underwent a restructuring program where we created five core business units from 36 different entities – starting with exploration and production. We want to go public, but we want to do it properly. So, we are currently going through all the processes to do this,” stated Gaspar Martins.

Distributed by APO Group on behalf of Energy Capital & Power.

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