Growing SA's informal market
Finweek English|27 August 2020
Zande Africa’s innovative informal market solutions bring efficiencies to spaza shops.
- Glenneis Kriel
Growing SA's informal market

In 2015, the absence of credit solutions for spaza shop owners led to bankers Siya Ntutela and Mdu Thabethe deciding to fill this gap by starting their own financial services company, Zande Africa.

“The name of the company was derived from a Nguni word that means ‘to multiply’, in reference to our objective to unlock the spaza shop economy, which boasts an annual revenue of over R40bn,” says Ntutela.

Their subsequent analysis uncovered that supply issues were an even greater challenge than cash constraints. “Spaza shop owners, at least once a week, have to either close shop or employ someone to run the shop while they are away buying merchandise. To address this challenge, we added supply and logistics solutions to our product offering,” says Ntutela.

Unlocking a market

Getting the initiative off the ground was easier said than done and had to be self-financed by Thabethe and Ntutela. In 2016, Zande Africa received a R1m injection from Merrill Lynch South Africa and AlphaCode, and won R750 000 when it took third place in the SAB Innovations Awards programme in 2018.

“There is a lot of great innovation competing for funding out there, so winning in some of these rounds proved to us that our business idea was on the right track,” Ntutela says.

As newcomers to the fast-moving consumer goods (FMCG) industry, Ntutela and Thabethe had to work hard to build the trust of suppliers and spaza shop owners. FMCG companies also have highly formalised distribution networks, so it took a lot of effort to persuade them to change their business practices and supply spaza shops more directly.

この蚘事は Finweek English の 27 August 2020 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

この蚘事は Finweek English の 27 August 2020 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

FINWEEK ENGLISHのその他の蚘事すべお衚瀺
THE HEALTH OF SA'S MEDICAL SCHEMES
Finweek English

THE HEALTH OF SA'S MEDICAL SCHEMES

As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.

time-read
7 分  |
5 November 2021
The effect of Gilbertson's departure
Finweek English

The effect of Gilbertson's departure

With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.

time-read
3 分  |
5 November 2021
Making money from music
Finweek English

Making money from music

Why investors are increasingly drawn to the music industry.

time-read
3 分  |
5 November 2021
Conviction is key
Finweek English

Conviction is key

Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.

time-read
5 分  |
5 November 2021
The post-pandemic toolkit
Finweek English

The post-pandemic toolkit

How CFOs can use technology to support growth.

time-read
4 分  |
5 November 2021
Big city living exodus
Finweek English

Big city living exodus

Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.

time-read
3 分  |
5 November 2021
Big compact, big value
Finweek English

Big compact, big value

Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.

time-read
3 分  |
5 November 2021
On barriers to entry
Finweek English

On barriers to entry

There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.

time-read
2 分  |
5 November 2021
Fear and greed in one index
Finweek English

Fear and greed in one index

To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.

time-read
3 分  |
5 November 2021
Africa's largest data centre facility coming soon
Finweek English

Africa's largest data centre facility coming soon

Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.

time-read
3 分  |
5 November 2021