Bruno Olierhoek, Chairman and Managing Director of Nestlé ESAR, today announced that the economic development
of the region is interdependent on strong partnerships between different stakeholders, including the informal retail sector.
“As one of the fastest-growing consumer retail markets in the world, Africa is full of economic potential. This potential lies firmly within the informal retail sector, which constitutes the vast majority of the retail market in Africa. To give impetus to this positive outlook, we have leveraged Nomanini’s technology to unlock business opportunities, drive economic growth, create jobs and improve ways of doing business.”
According to IFC studies, the vast majority of retail transactions
in Sub-Saharan Africa are cash-based and occur through informal networks (https:/bit.ly/3mxPfE9).
Therefore many retail MSMEs are unable to build the digital footprint required to obtain
the credit they need to keep their shelves filled with important items of high quality.
In addition, disrupted supply chains, inter-trade, as well as decreased market sales,
resulting from Coronavirus lockout regulations, have negatively affected many MSMEs across Africa.
“It is a real win for all to be able to support the creation of wealthier and healthier
communities by providing retail MSMEs with working capital,” said Adrian Vermooten, Chief Innovation Officer of the Standard Bank Group.
With Nestlé as one of our newest clients, we are able to address these and other key business challenges and transform the informal retail ecosystem through an innovative solution. Through our platform, Nestlé is able to provide much-needed access to sufficient working capital so that retailers can stock a wide range of high-quality products. This capital is offered in the form of physical stock rather than cash,” shared Vahid Monadjem, CEO and Founder of Nomanini.
He added, “Our solutions are designed with MSME retailers at the core so that we can support, rather than disrupt their businesses. We know that while many of these MSMEs are un- or under-banked, they would qualify for credit if they were. By using our technology and data, our partners can help MSMEs access credit responsibly.”
To build a credit score, Nomanini’s platform
analyzes the sales history of an MSME.
If accepted, an uncollateralised loan in the form of
stock from Nestlé will be provided to the retailer.
Without having to open a bank account or visit a bank branch, MSMEs
are given access to the working capital they need to expand their businesses.
They do not need to go to the bank or even have a bank
account to make an automatic transfer when it is time to repay the loan.
Nestlé is expected to extend the solution into other countries following the successful
implementation of the design trial in Zambia, benefiting thousands of MSMEs across the country.
SOURCE: NNN
