By Raphael Afaedor, CEO of Kyosk Digital Services
Embracing innovation and reimagining service capacities are part of a large realm of possibilities that has opened up across Africa as a result of e-commerce adoption, and the opportunities for tech start-up enterprises are limitless.
As African countries embrace the spread of digitalisation and goods that provide more access to newer Internet of Things (IoT) technology, one thing is clear: reinvention is feasible in every sector.
It is not only conceivable but may even be required for optimization and innovation to grow, as well as for digital solutions to address developmental difficulties.
Investor sentiment is also significantly skewed toward digital offerings that might move Africa forward in the tech arena, and according to studies, four countries account for over 90% of Africa’s ICT investments: Kenya, Nigeria, South Africa, and Egypt.
Kenya is seemingly leading the charge as investor sentiment is also crucially being met with the backing of political will, as the country is set to introduce its Start Up Bill this coming year (2023) to further encourage growth and sustainable development and new entrepreneurship in the tech space.
Investor confidence in innovations created by Africans is also birthing more opportunities for more players in the ecosystem.
We can also see how digitisation is already helping to optimize and formalize the informal market sector, notably mom-and-pop shops. They now have the resources, through platforms like Kyosk, where informal retail traders have greater direct access to Fast-moving consumer goods (FMCGs) corporations and their distributors, resolving not only historic structural supply chain difficulties but also product stock-outs.
Currently, the company has a database of 250 000 similar outlets across Kenya, Tanzania, Uganda, and Nigeria.
However, in an ever-changing and inventive landscape, the question of “what’s next?” arises.
According to figures supplied by the Global System for Mobile Communications (GSMA), 400 million new mobile customers will be added from frontier areas in Asia Pacific and Sub-Saharan Africa by 2025. By that time, the total number of users is predicted to reach 5.7 billion, accounting for 70% of the world’s population.
Technology is clearly growing more pervasive, and data is becoming more affordable for many African countries.
Digital organizations are increasingly being asked to provide not only quick service delivery, but also a greater range of value offerings.
Based on forward-thinking innovation and consumer need, a service offering may begin with one facet and end up reinventing the entire wheel.
As an example, solving for delivery efficiency in the informal retail industry is one stage in the chain, but opportunities to develop linkages in that chain that provide higher value for both enterprises and consumers broadens the range of possibilities.
Developers may now not only establish a direct link between informal retail shops, FMCGs, and their distributors – but FMCGS and distributors can also gain a better understanding of their product’s market coverage.
And it doesn’t have to stop there; with access to these stores’ actual database and trading history, the expansion of mom-and-pop shops can be accelerated by having reliable data on which to approach credit providers for access to working capital loans.
One way Kyosk is delighted to expand our own offering – and so increase efficiencies for both consumers and businesses – is by enabling access to micro-insurance products.
The future of African technology is a growing and exciting one, and we’re finding that by creating our users’ journeys, we’re shaping what’s possible for the rest of the continent.
