TECHDIGEST – Moni has launched a new range of business loans that will enable market traders, spare part dealers, textile traders, and other small business owners in Nigeria and other African countries to leverage the power of their communities to access the working capital they need to run and scale their businesses.

Community groups and associations serve a vital purpose in many emerging markets, providing essential services and protecting the collective interests, according to the firm.

It stated that it is pioneering a community finance model that builds on the importance of this form of group responsibility in African communities to improve access to essential financial services for small business owners on the continent.

Commenting on the scheme, the Chief Executive Officer and co-founder of Moni, Femi Iromini, said, “Our community-powered business loans product is just one of the ways we are innovating around our unique context in Africa to make the most of what is already in place to deliver the financial services business owners need to create long-lasting wealth for themselves and their communities.

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“We have ample evidence to show that this approach works. We are excited to bring more businesses on board to drive the economic development we all want to see on the continent.”

The firm noted that it has built a risk engine that combines financial data and business performance with social intelligence to enable more effective credit decisioning for African SMEs.

It stated that small business owners with a positive social reputation simply needed to join a lending cluster with an invite from an existing user of its product, and once their eligibility had been confirmed, they could access financing in about five minutes.

It added, “Once the loan is disbursed, the cluster shares responsibility for the loan, and members are able to access funds from an automated savings pot to bail out members if needed.”

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TECHDIGEST – E-commerce platforms like Jumia and fintech companies have brought a new dynamic to everyday living in Northern Nigeria.

Individuals, households, small enterprises, and huge corporations are increasingly turning to the internet for a variety of transactions.

More importantly, Jumia and other partners’ dedication to open the digital space in the northern states has resulted in increased awareness and knowledge of the enormous capabilities and benefits of e-commerce.

E-commerce platforms, in particular, have accelerated digitisation in the north by eliminating barriers to entry such as skepticism, lack of confidence, and concerns about data security breaches, among others.

Nano Strix, a 3PL logistics company, based in Abuja and several FMCG companies are among small and large corporations leveraging e-commerce to create and increase opportunities in the northern part of Nigeria and elsewhere. Through its partnership with Jumia launched in 2015, the company provides third-party logistics services and is the first logistics hub for Jumia in Northern Nigeria.

According to Nano Strix CEO Mohammed Maikudi, as the pioneer e-Commerce platform in Northern Nigeria, the company has been able to push over from the initial low user adoption occasioned by people’s lack of trust and fear of the safety of putting their debit cards online.

“Over time, Jumia has built a name for itself where we now see a more positive trajectory in the industry. People are now more trusting of the services Jumia offers, putting their credit cards or debit cards online ordering items without the fear of being stuck with something they don’t like or expect,” he said.

Maikudi further enthused, “Our package volumes have started to increase over time, allowing us to employ more staff, provide more benefits to our staff and bring them into the fold. For example, our volume has increased to a point where we allow staff to bring into our 3PL fleet, so everyone benefits.”

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Furthermore, Jumia’s partnership with Unilever for last-mile logistics is accelerating e-commerce adoption in Northern Nigeria.

The strategic partnership enables Unilever to improve turnaround time for consumers in Northern Nigeria’s vast geographic area, allowing them to obtain items more quickly.

The consumer goods company benefits from Jumia’s extensive logistics network by optimizing network scale, delivery speed, and seamless customer experience.

Commenting on the partnership, Jeremiah Aloko, Unilever Nigeria Logistics Manager, Supply Chain Operations, said the strategic partnership with Jumia Nigeria has significantly impacted top tier services in Northern Nigeria. During the presentation of Unilever Nigeria’s Best Logistics Partner award to Jumia, he said, “We are impressed with Jumia’s high quality of work in the context of an extremely challenging logistics environment in Africa.”

As e-commerce grows in popularity in Nigerian cities, Jumia and others are fostering many small businesses and logistics companies to satisfy the increasing demands of sellers and buyers. In some Northern Nigerian cities like Kaduna, Kano, and Plateau, it is now common to see delivery vans and bikes delivering items to customers.

Fortune Arinze, a Jumia partner and CEO of Brand Shop Prints, an Abuja-based ICT firm, applauded the impact of Jumia pick-up station on business growth.

He acknowledged that the partnership has helped maintain cash inflow during printing business downtime and supported business expansion through ownership of bikes that deliver food on the Jumia platform.

“As an entrepreneur, the major aim is to make more revenue, and that’s what having a pick-up station in our office space does for me. The advantage we get from this pick-up station is constant turnover, which is what every business needs because, with our kind of business, it’s not every day that we receive new jobs or contracts from clients, but the Jumia pick-up station is a steady source of income. People pick up items every day, and we also deliver food every day. Jumia pays for each item picked up from the station,” he said.

The disruption caused by COVID-19 emphasizes the importance of e-commerce adoption in the north. Logistics gaps like transportation and warehousing, as well as the lack of physical stalls to sell during the lockdowns, would have spelt doom for small scale farmers if not for e-commerce platforms. While the lockdown was in effect, their produce, particularly groceries and other perishables, would not have made it to the public.

Source : Tech economy.ng

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TECHDIGEST – Vice President Prof. Yemi Osinbajo has commended the National Information Technology Development Agency (NITDA) for relentlessly supporting Micro, Small, and Medium Enterprises (MSMEs) across the country.

The VP made this commendation in his speech to the participants and exhibitors at the 30th edition of the MSMEs Clinic held in Maiduguri, Borno State.

Osinbajo echoed that the MSMEs Clinic served as the bridge between the Federal, State governments, and small businesses in every state by bringing all relevant regulatory agencies together in one place to help the small businesses to solve their problems.

The VP said, “The idea is similar to providing an opportunity for patients to consult doctors of mobile clinics. The aim of the MSMEs Clinic is to establish one-stop shops. All facilities are provided for small businesses to benefit from the services, with working synergy of regulatory agency which will be more readily accessible and cost-beneficial’’.

He assured participants of the federal government’s full support for the cost of the shared facilities or shop facilities with the latest equipment to relieve the financial burden for the overall benefit of youth and women.

The VP urged the MSMEs to utilise the matching order of the FG to tap into this great opportunity with relevant government agencies like NITDA, which supports MSMEs from scratch.

Earlier, the Minister of State for Trade and Investment, Ambassador Maryam Katagum, outlined the support of NITDA in small businesses by creating opportunities for them to thrive.

Katagum said: “This is imperative for increasing productivity, creating jobs, and boosting our economy. Since its inception in 2017, the MSMEs Clinic has served as an effective platform to enable government interaction with stakeholders across all sectors to ensure that all MSMEs have the supports they need to grow and flourish.

According to her, “the 30th edition was intended to provide MSMEs with critical information, regulation and additional assistance, avail businesses with immediate expert advice, as well as offer more in-depth advisory services.”

On its part, NITDA promised to continue its nationwide support to MSMEs for economic impact and growth that will help businesses to adopt digital innovation.

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